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Post by aceman on May 30, 2016 20:02:57 GMT
I am using Mintos for a month exactly and I need a bit help. 1st of all, I tried to sell a loan at the SM just for testing. I cannot sell it +1% from the amount I bought it. It says it's more than I paid but I see many sells with plus percentage at SM. 2ndly, I have a late loan of 15 days with BuyBack guarantee. If it's late for 60 days I know I will receive my money back without interest. But, if he pays in 20 days late for example, would I receive an interest for these plus 20 days or only the original interest? Finally, why anyone buys from SM? Thanks mates in advance.  |
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Post by thep2pinvestor on May 30, 2016 20:44:32 GMT
I think you receive interest also for the delayed period. As a matter of fact, many of the Creamfinance loans are delayed. If there would be no interest on the delayed period, nobody would buy these I guess.
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Post by extremis on May 30, 2016 22:32:57 GMT
1) You can sell at SM from 99% discount to 20% premium as long as YTM is positive, i.e. there is some benefit for the investor buying the loan. Since you are selling at a premium, YTM would be lower than interest rate. How much lower depends on the premium you are asking, but also on the remaining terms. So, if the loan is due e.g. tomorrow even 1% premium could result in a negative YTM.
2) Usually you get late interest payment even in case Buyback guarantee kicks in. But maybe it is different for different loan originators; you can always check the loan agreement (the pdf documents next to the loans in My investments tab).
3) SM is very important both for sellers and for buyers. Buyers can benefit from buying loan parts that are not available in PM (loans that you would want to invest in, but you missed). One could profit from buying at a discount rate, or even buy at a premium if there is a stream of timely repayments from the borrower that justifies it.
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Post by aceman on May 30, 2016 23:09:13 GMT
1) You can sell at SM from 99% discount to 20% premium as long as YTM is positive, i.e. there is some benefit for the investor buying the loan. Since you are selling at a premium, YTM would be lower than interest rate. How much lower depends on the premium you are asking, but also on the remaining terms. So, if the loan is due e.g. tomorrow even 1% premium could result in a negative YTM. 2) Usually you get late interest payment even in case Buyback guarantee kicks in. But maybe it is different for different loan originators; you can always check the loan agreement (the pdf documents next to the loans in My investments tab). 3) SM is very important both for sellers and for buyers. Buyers can benefit from buying loan parts that are not available in PM (loans that you would want to invest in, but you missed). One could profit from buying at a discount rate, or even buy at a premium if there is a stream of timely repayments from the borrower that justifies it. thank you for the answer bro.
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Post by yoica on May 31, 2016 8:01:28 GMT
1st of all, I tried to sell a loan at the SM just for testing. I cannot sell it +1% from the amount I bought it. It says it's more than I paid but I see many sells with plus percentage at SM. I actually had the same issue initially, because I would type the price I want to sell it for in the 'sell' field on the 'my investments' tab. If you do this you get the error msg you mention. What you need is type the principle amount (excl premium/discount) and the press the suitcase. After that you will get a 'review and approve' popup and here you can set the premium/discount% you want.
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Post by aceman on May 31, 2016 9:08:09 GMT
1st of all, I tried to sell a loan at the SM just for testing. I cannot sell it +1% from the amount I bought it. It says it's more than I paid but I see many sells with plus percentage at SM. I actually had the same issue initially, because I would type the price I want to sell it for in the 'sell' field on the 'my investments' tab. If you do this you get the error msg you mention. What you need is type the principle amount (excl premium/discount) and the press the suitcase. After that you will get a 'review and approve' popup and here you can set the premium/discount% you want. You are the best!!!
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Post by aceman on May 31, 2016 19:46:39 GMT
I put a few loans for sale and after a couple of hours I checked my investments page and no loan was for sale. Off course without sb buy them. Is this a bug or am I doing anything wrong? Now again! After 30 minutes 7 loans which were for sale, now they are not!  |
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Post by martins on Jun 1, 2016 8:17:25 GMT
Most likely the loans you put for sale are with negative YTM. Loans with negative YTM are automatically removed from the Secondary Market.
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Post by aceman on Jun 1, 2016 18:48:54 GMT
Thank you Martins. |
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Post by karloshi on Nov 2, 2016 18:23:45 GMT
I understand the previous comments about YTM, however, the loans I want to sell have a buyback agreement in place. If the person buying the loan would still pick up the extra interest and late payment fees when the buyback kicks in, why won't the loans go on to the secondary market?
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p40l0m4r
Member of DD Central
Posts: 63 
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Post by p40l0m4r on Jan 7, 2017 15:07:13 GMT
I understand the previous comments about YTM, however, the loans I want to sell have a buyback agreement in place. If the person buying the loan would still pick up the extra interest and late payment fees when the buyback kicks in, why won't the loans go on to the secondary market? I don't think the buyer will have all the interests given from the buyback, but only the part from the time he bought the loan, isn't it?
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Post by buttchopf23 on Jan 8, 2017 23:43:02 GMT
Interest sticks to the holding period, does not matter if overdue, late fees or buyback interest. All is computed daily and attributed accordingly to each individuals holding period.
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