theshape
Member of DD Central
Posts: 153 
Likes: 109
|
Post by theshape on Jul 16, 2017 15:36:52 GMT
Are there any fundamental differences between these loans or are they effectively like different tranches of one larger loan?
|
|
|
|
Post by dan1 on Jul 16, 2017 17:15:27 GMT
Are there any fundamental differences between these loans or are they effectively like different tranches of one larger loan? As I understand it they are loans to the same underlying SPV. I'm not sure I'd refer to them as tranches because they have different end dates but I would expect further loans to follow to replace those that expire (assuming no expansion/contraction of the underlying business). At present, you could make a cool 61p by selling £123 of III @ 98.5% and buying £123 of ACI 1 at 98% for a 0.5% profit and pushing out the end date by 6 months or so.
|
|
elliotn
Member of DD Central
Posts: 3,063
Likes: 2,681
|
Post by elliotn on Jul 17, 2017 2:42:16 GMT
I did my trade using vsl which had a larger spread although I perceive company risk greater with vsl as the other loans pool risk across 100+ dealers.
|
|
theshape
Member of DD Central
Posts: 153
Likes: 109
|
Post by theshape on Jul 17, 2017 21:33:59 GMT
Are there any fundamental differences between these loans or are they effectively like different tranches of one larger loan? As I understand it they are loans to the same underlying SPV. I'm not sure I'd refer to them as tranches because they have different end dates but I would expect further loans to follow to replace those that expire (assuming no expansion/contraction of the underlying business). At present, you could make a cool 61p by selling £123 of III @ 98.5% and buying £123 of ACI 1 at 98% for a 0.5% profit and pushing out the end date by 6 months or so. Tranches was the wrong term. Couldn't think of another way to describe it but you understood what I meant and confirmed my thinking.
|
|
