fasty
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Post by fasty on Jan 23, 2017 15:30:13 GMT
Unless I am mistaken, the borrower of loan 23922 (risk band "E") has paid off his loan today after about 6 months and taken out a new (even larger!) loan 31378 which is only risk band "A".
A very tasty saving of interest payments for the borrower, but I am surprised at the magnitude of the change... Are the goalposts still moving?
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jamesc
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Post by jamesc on Jan 23, 2017 16:00:23 GMT
Unless I am mistaken, the borrower of loan 23922 (risk band "E") has paid off his loan today after about 6 months and taken out a new (even larger!) loan 31378 which is only risk band "A".
A very tasty saving of interest payments for the borrower, but I am surprised at the magnitude of the change... Are the goalposts still moving? Likewise 20868 (E) has just returned as an "A" 31450 so it seems to be a trend !
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Post by Butch Cassidy on Jan 23, 2017 16:04:48 GMT
You can also add to the list 20868 grade E £20k @ 17.4% transforming into 31450 grade A £29k @ 8% over 2 years; Whilst the numbers are pretty grim, in the borrowers defence, they have paid 10/12 instalments, all seemingly on time.
But I do agree on the wider point that FC now just push anything out at A+/A grade until they hit the risk band default prediction, with precious little DD, lender info or chance for meaningful Q&A - the main reason why I no longer buy via PM.
EDIT: Cross post with jamesc
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oldgrumpy
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Post by oldgrumpy on Jan 23, 2017 16:17:06 GMT
...which is why I trust Fundamentally Crumbling with no investment at all now.
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blender
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Post by blender on Jan 23, 2017 16:29:46 GMT
Slytherin house has been removed from the FC sorting hat. The bad guys have got to be placed somewhere else.
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acky
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Post by acky on Jan 23, 2017 18:03:36 GMT
What we don't know, of course, is the strength of the directors' guarantees - maybe all these 'E' directors have just inherited the family estates ..... [ducks to avoid airborne pig!]
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blender
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Post by blender on Jan 24, 2017 13:54:07 GMT
18789 is going through the new lamps for old process. It is an E so good, and large, that I bought a good chunk and have held for 12 repayments (breaking the rules). It is not yet relisted, but I wonder if this may be the first known E to A+ conversion? If they had listed it A+ to start with I would not have been surprised, compared with the other rubbish, but of course we do not have sufficient info to understand the workings of FC's sorting hat. So, what do we think the new band will be?
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fasty
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Post by fasty on Jan 24, 2017 18:18:25 GMT
18789 is going through the new lamps for old process. It is an E so good, and large, that I bought a good chunk and have held for 12 repayments (breaking the rules). It is not yet relisted, but I wonder if this may be the first known E to A+ conversion? If they had listed it A+ to start with I would not have been surprised, compared with the other rubbish, but of course we do not have sufficient info to understand the workings of FC's sorting hat. So, what do we think the new band will be? yes, I have a considerable chunk of that one and it's one of the few that I have kept for a length of time. It was probably the credit rating heading steadily upwards that attracted it to my simple mind.
New band? I'll guess at "A"
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Post by Butch Cassidy on Jan 24, 2017 18:41:56 GMT
18789 is going through the new lamps for old process. It is an E so good, and large, that I bought a good chunk and have held for 12 repayments (breaking the rules). It is not yet relisted, but I wonder if this may be the first known E to A+ conversion? If they had listed it A+ to start with I would not have been surprised, compared with the other rubbish, but of course we do not have sufficient info to understand the workings of FC's sorting hat. So, what do we think the new band will be? I will also admit to a decent sized holding; Family owned & run firm with 90% government/MOD contracts, decent credit history (+ 2 previous spotless FC loans, 4127/6361) with decent numbers; was probably harshly given E band in the first place. Might get taken as a whole loan under the "oh so transparent" random allocation process, AKA let the corporates cherry pick what they want & throw the remains to the plebs/autobidders.
As for the new lucky dip FC risk banding - who knows but this one might actually deserve an upgrade, which is more than can be said for most FC loans, there appears to be a growing trend of loanbook recycling with existing borrowers being deliberately targeted for grade inflation, rate busting promotions, whether they deserve it or not - I guess it is all about driving maximum volume to boost figures before an IPO/buyout can be launched in the next couple of years?
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blender
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Post by blender on Jan 26, 2017 14:34:28 GMT
18789 has been replaced by a whole loan. It went from E to A, but not to A+. That may be due to the size being £289k for 60 months at 9%, from £150k. I suppose I was just lucky to have it as an E for a year. The record of the first promotion from E to A+ is still there for the taking. Good luck to the borrower.
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blender
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Post by blender on Jan 27, 2017 10:55:21 GMT
9%. So the rate has halved. We never understood why it was an E. Maybe there was a possible large CCJ or other contingent credit event which did not hit. I am sure they do not tell us about contingent risk in the assessments - which is one reason why DD is difficult.
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