SteveT
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Post by SteveT on Jul 10, 2016 8:53:11 GMT
Originally but containers are purchased in US Dollars and the drop in the value of the Pound has increased the likely Pound prices of containers in the UK. So that's probably increased the value of every container that has already been ordered and paid for, regardless of the loan involved. Er.. wouldn't that reduce the LTV? Exactly
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jonah
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Post by jonah on Jul 10, 2016 8:56:51 GMT
Originally but containers are purchased in US Dollars and the drop in the value of the Pound has increased the likely Pound prices of containers in the UK. So that's probably increased the value of every container that has already been ordered and paid for, regardless of the loan involved. Er.. wouldn't that reduce the LTV? If it was worth say 150 USD it will still be worth 150 USD as it is priced in dollars. But 150 USD has gone from 100 to 120 ish pounds in the last few weeks, increasing value for us. This is, in this case, a good thing. In the medium term a downturn in the uk economy could reduce demand and therefore the uk price for these specific items,which could balance out the exchange rate benefits.
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stevio
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Post by stevio on Jul 10, 2016 12:28:17 GMT
LTV is 90% Originally but containers are purchased in US Dollars and the drop in the value of the Pound has increased the likely Pound prices of containers in the UK. So that's probably increased the value of every container that has already been ordered and paid for, regardless of the loan involved. Thought it was 100% LTV and have these containers already been paid for as I thought the price was to be determined in transit?
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ptr120
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Post by ptr120 on Jul 10, 2016 13:06:10 GMT
ISTR that the containers also generated some income as they were rented out during transit - they don't come in to the UK empty!
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stevio
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Post by stevio on Jul 10, 2016 13:55:35 GMT
If there was a large enough profit here, then the borrower would most likely have continued with the loan
If the price has not yet been negotiated or they have been payed for in sterling prior to the Brexit, then this is probably where the issue lies in that the pound has taken a major downturn since the loan started and is unlikely to recover in the short term.
Buyers are probably paying in sterling and a) have already paid and the borrower took the hit on the fall in the pound b) don't want to pay more than post Brexit and are also being cautious on new purchases post Brexit
The entire loan was based on the borrower making a large enough profit margin to cover a) the loan interest rate (plus what Ablrate adds to the rate) b) % profit they saw worthwhile
If the containers can now only be sold at less than cost, the borrower has nothing to lose by passing this onto Ablrate and us, rather than take this loss themselves
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hazellend
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Post by hazellend on Jul 10, 2016 14:37:45 GMT
The borrower will lose the ability to raise any future loans on ablrate, which I would have thought meant something.
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Post by ablrateandy on Jul 10, 2016 14:45:13 GMT
Just to remove one element of doubt, the loan was made in sterling, the containers were purchased in sterling and to the best of our knowledge his main sales outlets were in the UK.
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Post by cpaken on Jul 10, 2016 15:00:24 GMT
Are the containers currently bringing in any revenue? If so, how much and how long is the contract?
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Steerpike
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Post by Steerpike on Jul 10, 2016 17:31:13 GMT
I have a modest investment in this loan but have heard nothing and the only sign on the website is that the payment is late - edit: I have the message now
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Jul 11, 2016 9:46:18 GMT
mods ablrate ablrateandy: should we maybe have a pink/private forum like AC to discuss those matters that is available only to ABL investors?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 11, 2016 10:13:04 GMT
mods ablrate ablrateandy : should we maybe have a pink/private forum like AC to discuss those matters that is available only to ABL investors? There's a comments section for each individual loan on the Ablrate site. I surprised nobody has posted anything yet. They may have but as its moderated by Ablrate the comments may be pending signoff or rejected
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james
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Post by james on Jul 11, 2016 10:54:31 GMT
My loan in the January containers is suspended on the SM but I have received no email telling me why. I have sent ablrateandy a pm asking for info. You might also want to give them a call.
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ptr120
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Post by ptr120 on Jul 13, 2016 15:29:58 GMT
Is it time to have a poll on time-frame and %age recovery that we'll get from this and the other C******* loan?
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oldgrumpy
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Post by oldgrumpy on Jul 13, 2016 15:43:38 GMT
No!
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ptr120
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Post by ptr120 on Jul 13, 2016 16:00:15 GMT
No! Living up to your name oldgrumpy? Or are you just skeptical about recoveries?
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