james21
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Post by james21 on Jun 27, 2017 16:25:03 GMT
Can anyone explain the secondary market? eg a loan part is available for £1000 plus £14 of accrued interest total cost to buy £1014, I am not understanding the £14 part of the costs; cant see the answer in the FAQ, sorry to be so thick!
Thank you
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Post by dan1 on Jun 27, 2017 16:40:02 GMT
Can anyone explain the secondary market? eg a loan part is available for £1000 plus £14 of accrued interest total cost to buy £1014, I am not understanding the £14 part of the costs; cant see the answer in the FAQ, sorry to be so thick! Thank you I'm not with relendex but accrued interest is the interest due to the seller for the period from the last interest payment to the date you purchase on the secondary market. Wikipedia will have a detailed explanation. For example, take a loan paying 10% pa, with the interest paid annually on 1st Jan each year. If you purchase the loan part on 21st Feb you'd pay the seller 51 days of accrued interest or, near enough, £14 (51/365 * 10% * £1000) - I think!
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james21
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Post by james21 on Jun 27, 2017 16:47:35 GMT
do I get that £14 back at some point?
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Post by dan1 on Jun 27, 2017 17:31:28 GMT
do I get that £14 back at some point? Yes, as part of the next interest payment. That assumes the loan doesn't default of course! Edit: two things to remember, 1. be clear on whether tax is due on the accrued interest if held outside of an ISA, and 2. you take on more risk purchasing a loan part nearer to the interest payment date, all other things being equal.
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shimself
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Post by shimself on Dec 18, 2017 20:10:56 GMT
My comment about the SM is that you can only buy a complete loan part, so today I was thinking of reinvesting a few hundred quid I got back from a completed loan, but actually all the loan parts available are for larger amounts.
I now need to remember if I go large on anything then I should invest in a few bite size pieces not one jumbo lump, to make it easier to sell on if needs be
@relendex are you looking to allow people to buy fractions of a loan part in future (£500 lumps anyway same as primary markeT?
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Post by wengyeeRelendex on Dec 19, 2017 2:28:41 GMT
Auto-partitioning is a feature that is definitely on the list of things we want to provide to lenders. This will auto-partition all Loan Parts right at the primary market so lenders won't have to buy multiple Loan Parts.
Unfortunately I cannot give an exact date to when this feature will be available but will report back the moment I do.
Regards, WengYee
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Nomad
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Post by Nomad on Jun 1, 2019 16:54:24 GMT
154 loan parts on offer today!
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Post by uksoul on Jun 2, 2019 5:02:45 GMT
154 loan parts on offer today! yes.loads being sold..is that a good thing? Never seen well over a hundred on sale before.
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hantsowl
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Post by hantsowl on Jun 2, 2019 22:20:14 GMT
154 loan parts on offer today! yes.loads being sold..is that a good thing? Never seen well over a hundred on sale before. Most seemed to appear at once in chunks of £1000. To me this suggests that someone is trying to free up some cash for some reason or other.
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mrsb
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Post by mrsb on Jun 3, 2019 7:43:37 GMT
Doesn’t look like the same person selling all/most of the parts listed on SM.
Not enough consecutively numbered parts. If you look at the buying patterns, a lot are bought consequently - and a lot of those by relatively few buyers.
There have been 100+ parts on SM before, didn’t last long ... interesting to see what happens here, and whether they sell - or drop off the SM unsold.
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littleoldlady
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Post by littleoldlady on Jun 3, 2019 14:58:44 GMT
Another possibility is that this is the underwriter of the loans.
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ant1
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Post by ant1 on Jun 4, 2019 13:39:07 GMT
I think it is one of the big investors looking to offload some of their investments. When the auctions go live there are usually two or three investors who buy up large chunks of a loan, usually in £500 and £1000 denominations. Their purchases are not sequential as other people are also buying chunks whilst they prepare their next bid.
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mrsb
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Post by mrsb on Jun 4, 2019 13:59:03 GMT
The big buyers buy in blocks of consecutive small parts. I've saved some of the bid lists in the final stages of auctions.
Whatever is underlying the selling, it nevertheless represents a tiny percentage of the overall book.
I'm sure it'll settle back soon enough to the usual 10~30 parts for sale.
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littleoldlady
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Post by littleoldlady on Jun 4, 2019 15:00:42 GMT
wengyeeRelendex if it's possible to do so it might set minds at rest if you could give some indication of what is going on.
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Nomad
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Post by Nomad on Jun 4, 2019 15:41:20 GMT
wengyeeRelendex if it's possible to do so it might set minds at rest if you could give some indication of what is going on. Isn't the contact pennyrelendex these days?
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