The recent glut seems to have freed up a bit more opportunity to bid for pawn so possibly the most frequent users noted above may now be at platform limits or have used vailable funds. The underlying issue was ignored by Collateral Rep (at least in providing investors with any update) so this could return again once the SM is tighter.
Surely all they have to do is introduce an IFISA and all the liquidity will return (nearly) instantly?
That will take about a month or so isa manager application at hmrc once they are authorised by fca.
We can infer changes being made for fca (although not admitted unlike MT) in dropping Saving from their name + SM credit facility but have no further indication when this might happen other than anecdotally some other biggies have recently gone through such as Z/FC and perhaps more comparable FS/MT.
Would be interesting to know the mechanics of the mini-bonds and when these might be scaled up too.
It may be worth taking Ly out of isolation and looking at any correlation with other loan books. 13% on MT, CB & 14% on Col have left unusual SM balances as investors tend to cross-finance across books.
Is there a risk that lenders won't renew their older loans with the aim of using the cash to invest in these newer ones? If so who will fund the non-renewed loan parts?
I assume MT must have brought underwriters in to finance the renewals because they have said anyone who doesn't opt in will be repaid in full, and so far as I know MT are not allowed to do it themselves. Maybe the SM will be closed while the underwriters exit their bits like on the recent Edinburgh loan.
Edit: for balance I'd like to point out that this is a negative for MT vs Lendy where underwriters have to accept subordination on SM to selling investors. MT get a lot of praise, and rightly so, but it's only fair to point out the negatives where they exist.
I've asked MoneyThing repeatedly about the recognition and treatment of "private individual" sales on the MT "primary market".
So far studiously ignored.
Loans that are not renewed in the transition to new t&c will only throw this further in to the headlights.
For me at least worth being acknowledged, our agent apparently thinks not.
A deal could invovle a haircut to Ly's 'default'/exit fees and still return lenders' cap/int (or as close as possible and Ly may still feel it is in their interest to make whole manageable amounts).
It could set a precedent although some flexibility in cleaning up the overdue book might benefit both sides (not to mention be less expensive/time consuming).
Whilst you cannot tell if a loan will significantly delay or not you'd hope lessons are learnt if there are any commonalities (say, marketability of some farms/care & stately homes, dealing with 'disreputable' borrowers etc).
I guess a filter would pull together all MH tranches on screen (thinking of AC filter) whilst Ctrl F would jump between entries and require a modicum of effort to sum up the individual entries? I just filter by end date and scroll pass any irrelevant loans.
Looking at different SMs seems another biggie might be dependent on other redemptions and that may not necessarily fit in with the borrower's requirements (unless of course MT can find "private individual(s)" to substitute the primary market as they did with Edinburgh).
This loan still has a while until maturity. Do we have a feel for how long term finance may take? If bookings were taken from July for, say, a Nov opening could we expect 6 months min. of trading before a mainstream refinance?
Just to confirm above, it's the anniversary of your 1st payment and must be received before 4pm on a work day otherwise carried over to next work day:
"I can confirm that your funding window for deposits is on the anniversary of your first initial deposit. As you funded your account on 25th May, you can fund this again on or after 25th of each month".
I'd say not. That might cause panic if a large chunk suddenly appears to be on the sm (not all investors read this forum).
Wouldn't surprise me if the investor was somehow linked to Broadoak and they're just helping out.
I'm more interested in understanding MT transparency under their new T&C, they can explain this in the drawdown email they sent to investors telling us the borrower has already been paid. The private individual could always release in manageable chunks if they had concerns about market reaction.
MoneyThing can you please ensure under your new terms and conditions that investors are made aware when we are buying loans from the platform and when we are buying from private individuals. It's a compliance thing .
MoneyThing will you make it clearer to investors when they are buying on the primary market with MT originating the loan per your new t&c and when they are buying it afterwards from private individuals? (Not all investors may make that inference from the drawdown column).
What do you think of Ly's policy to allow ordinary retail investors to sell their loan parts ahead of underwriters?