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Post by GSV3MIaC on Jun 11, 2014 7:44:57 GMT
I see the MBRs for C and C- are edging up again next month, but the max rate seems to be stuck at 15%, and has been forever. Before long C-s are going to default to fixed rate as the min and max converge. Isn't it about time Max rates went up too .. The current level was set back when a B was the dodgiest loan on the books.
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merlin
Minor shareholder in Assetz and many other companies.
Posts: 902 
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Post by merlin on Jun 11, 2014 8:28:48 GMT
I agree. I think max rates should go up to 17% to keep in line with previous rate changes and cannot see this causing many problems.
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wysiati
Member of DD Central
Posts: 397
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Post by wysiati on Jun 11, 2014 10:24:52 GMT
What you probably don't want to see is what appear to have been done by rebuildingsociety where a loan was apparently moved mid auction to a higher risk band so that a % higher rate could be bid - it really calls into question the reliability of any risk banding imo if bands can be switched purely to accommodate bidding rather than based on perceived probability of loss of the underlying borrower etc.
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Post by davee39 on Jun 11, 2014 10:46:19 GMT
I would not touch a C- at 15%.
I would be happy with lifting the max to 16%. This would cause extra bidding activity so it may be more sensible to set a max of 14% for A+ and A; 15% for B and c and 16% for C-.
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Post by GSV3MIaC on Jun 11, 2014 11:20:42 GMT
Solve the 'More bidding' by going to 0.25% steps, as used by BOE ETC. Not sure how much effort it'd take for FC to change The max rate, or the stepsize .. They managed to alter the minima OK.
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