metoo
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Post by metoo on Dec 10, 2015 10:53:55 GMT
Now that's what I call adding value. Not. You get what you pay for. (From memory the investment trust charges no ongoing fees.) They have to have a neutral allocation process. It wouldn't do if Flying Carpets were to favour the allocation of loans to one group of investors over another. They couldn't cherrypick the best investments for their own fund (only £150m of nearly £1bn) without causing revolt amongst other investors, retail and even institutional. Hence they can't add management charges to the investment trust, though it will have gearing. It's branded as an Income Fund, so advisers can diversify and spice up income investors' portfolios I guess. In any case, all available information is factored into the risk bands...
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metoo
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Post by metoo on Dec 9, 2015 22:08:04 GMT
According to Final Chance's stated procedures any loan which does not fill on the partial board will be offered as a whole loan - and this now applies to property. So, if it becomes the unwanted last turkey in the shop they can increase the CB, or buy the rest through FCPF, or let it fail and offer it up to the whole loan buyer. Feeling Canny will know that the WL buyer does not have a West Byfleet in his collection, but if he/she rejects it Failed Chunk would have to buy the whole loan - or declare a technical error of course and start again. Could we see a PL reject? The WL lender on these property loans is the Irish-registered company referred to on pages 116, 167 and 176 of the Funding Circle SME Income Fund Limited prospectus available from www.fcsmeif.com. "The Company has no ability to independently determine the creditworthiness of a potential borrower or discretion to reject a Credit Asset randomly allocated to it (if it is within the scope of the Investment Policy and any Portfolio Limits, and there is sufficient Available Cash)." [prospectus] So it couldn't be rejected by this WL buyer... However, it only receives randomly allocated loans, so wouldn't take PL rejects. Phew.
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metoo
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Post by metoo on Dec 9, 2015 21:54:12 GMT
So everything becomes clear. Except if they rejected 2 of the Whole Loans that is very strange behaviour! "The Company has no ability to independently determine the creditworthiness of a potential borrower or discretion to reject a Credit Asset randomly allocated to it (if it is within the scope of the Investment Policy and any Portfolio Limits, and there is sufficient Available Cash)." This shouldn't explain it because the fund has £150m to invest. Where did the rejects come in the sequence? Do we know the lender on the rejects? It has been suggested the tech team were just practising? Perhaps the fund wasn't ready at first. We shouldn't see any more rejects...
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metoo
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Post by metoo on Dec 9, 2015 20:13:53 GMT
The WL lender on these property loans is indeed the Irish-registered company referred to on pages 116, 167 and 176 of the Funding Circle SME Income Fund Limited prospectus available from www.fcsmeif.com. So everything becomes clear.
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metoo
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Post by metoo on Dec 9, 2015 19:43:44 GMT
Is it just the amount ? - was £309280 Yep. Festive Competitions should be awarding a small prize for the first correct answer I think. Edit: I missed acky 's post. Seems they set a harder spot the Technical Error competition this time.
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metoo
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Post by metoo on Dec 9, 2015 18:38:12 GMT
... spot the difference?
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metoo
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Post by metoo on Dec 7, 2015 17:03:30 GMT
I happened to look at the IR for 18025, and its a random one from another development altogether. Not that it affects anyone. Either this WL buyer isn't interested in the details, or had other ways of receiving them.
I wonder how opening up property to WL buyers will affect supply, and other dynamics... Time will tell.
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metoo
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Funding Circle (FC)
Grumble
Nov 30, 2015 21:36:39 GMT
Post by metoo on Nov 30, 2015 21:36:39 GMT
My inference is that this was the loan broker, who has privileged access to the Q&A, attempting to find a way to prevent the loan from drawing down as planned on Friday. And here we are at the end of Monday, after the monthly interest payment was made on Saturday on the loan that was supposed to be repaid with this loan. How do you infer all that from the garbled cryptic question? The fact of the interest payment is very worrying. Because it is impossible for ordinary lenders to post Q&A questions after the loan closes. It is a distinctive name, rather a strong coincidence that there is someone of the same name on LinkedIn working for an intermediary that arranges p2p loan finance local to the borrower.
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metoo
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Funding Circle (FC)
Grumble
Nov 30, 2015 18:03:58 GMT
Post by metoo on Nov 30, 2015 18:03:58 GMT
My inference is that this was the loan broker, who has privileged access to the Q&A, attempting to find a way to prevent the loan from drawing down as planned on Friday. And here we are at the end of Monday, after the monthly interest payment was made on Saturday on the loan that was supposed to be repaid with this loan.
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metoo
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Funding Circle (FC)
Grumble
Nov 30, 2015 17:08:53 GMT
Post by metoo on Nov 30, 2015 17:08:53 GMT
Bidding on this loan (17752) closed at 26 Nov 2015 15:47. How was a Q&A question posted by J*** S***** at 26 Nov 2015 23:35 - "Would we will able to come and see you about discussing this?" Does that seem bizarre?
There is someone of the same name on LinkedIn, based fairly local to the borrower, in a firm that helps businesses find finance. The head of this firm has been interviewed on radio about why p2p is better than banks.
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metoo
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Post by metoo on Nov 30, 2015 16:19:09 GMT
New Autobidders must think they will be lending to SME businesses but will find, increasingly, that their money is going into property development in the new loans. I suppose, to get the money invested quickly, they have to buy a large number of loans on the SM. The money is going to be deployed in the PM via WLs - no purchasing on the SM. There is no mention of property loans at all in the prospectus so I think they are specifically excluded or would have been highlighted within the risk factors. In the prospectus, whereas property is not mentioned under the "Risk Factors" summary/introduction on p16, in the section "1. Risks relating to the Company and its business" which begins on p17, see the sub-heading "Investment in loans relating to, or secured on, real estate may have a different risk profile to other loans" on p21. This says that "The Company may invest in Credit Assets originated by Funding Circle that are secured on real estate. Such loans may be loans made to finance expansion or for other general purposes of the borrower, or may be loans made for the purposes of real estate development." It goes on to spell out the risks. So it does seem the investment trust will probably buy property loans on FC. Further details are given on p75.
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