Grouped Assets vs Individual Assets

stevio
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Grouped Assets vs Individual Assets Oct 20, 2016 12:45:57 GMT

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Post by stevio on Oct 20, 2016 12:45:57 GMT

Just debating internally which I prefer on Collateral and wondered others thoughts?

Grouped Assets have the benefit of of being able to invest larger amounts in one go, without the need to attend several loan launches.

However all assets are with one borrower, rather than potentially (collateral won't currently reveal which borrowers are for which loans, but I understand loan coding is coming to do this) spread of borrowers. Although risk would be similar, a default of single borrower could have a greater affect

Grouped asset loans on MT are different as they are grouped pawn loans to third parties rather than on stock to one lender, but they have the benefit of swapping out defaults

Other thoughts please?

Last Edit: Oct 20, 2016 12:48:30 GMT by stevio

stevio Member of DD Central Posts: 2,065 Likes: 894	Grouped Assets vs Individual Assets Oct 21, 2016 9:12:40 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by stevio on Oct 21, 2016 9:12:40 GMT Looks like just me considering this then!

n
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Grouped Assets vs Individual Assets Oct 21, 2016 14:02:36 GMT

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Post by n on Oct 21, 2016 14:02:36 GMT

I assume we are only talking about jewellery here.

As you say the Groups are larger loans, and also of a longer duration, otherwise they are the same as any other loan as far as I can see. Same asset class, single borrower who may have other loans (except where/as specified).

Maybe there will be more chance of them renewing but that is a way down the road.

Whether these things are desirable probably depends on the size of your pocket, your willingness to spend time on the platform, your faith in the liquidity of the SM and other things I haven't thought of. It will be a personal choice for each individual.

When the rate of new money entering the platform has increased a few fold I expect the smaller loans will not be practical so grouping might be the way forward. Or turn into Unbolted (which I also like, if only they had more loans).

Collateral Rep Representative of Collateral Posts: 1,209 Likes: 1,915	Grouped Assets vs Individual Assets Oct 25, 2016 15:06:36 GMT stevio likes this Quote Select Post Deselect Post Link to Post Back to Top Post by Collateral Rep on Oct 25, 2016 15:06:36 GMT Hi, This is something we will look to add to the loan listings in the future. Many thanks, Gordon

upland Member of DD Central Posts: 478 Likes: 175	Grouped Assets vs Individual Assets Oct 28, 2016 6:16:04 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by upland on Oct 28, 2016 6:16:04 GMT Any additional real assurances would be good. We tend to forget that only a few years ago a lot of financial institutions bought a lot of assets that were worth a lot less than they thought and it resulted in a lot of trouble.

Post by stevio on Oct 20, 2016 12:45:57 GMT

Post by stevio on Oct 21, 2016 9:12:40 GMT

Post by n on Oct 21, 2016 14:02:36 GMT

Post by Collateral Rep on Oct 25, 2016 15:06:36 GMT

Post by upland on Oct 28, 2016 6:16:04 GMT