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Post by meggem on Aug 7, 2014 16:00:48 GMT
I hope you don't mind me putting you on the spot, but are you saying the quality has stayed the same, but rates have dropped? Actually Ton you can only make a reasoned judgement on quality once loans have been repaid and you have all the facts at hand. I support the view elsewhere on here that the volume of loans above 10% has dropped in the last quarter. The only qualification I would make is that I should have said new loans. Sure there are loans above 10% on the AM but as some are for long term that should not be surprising. New loans above 10% apart from Aber, I fear not many! Thanks for the question Ton. My own impression is that for identical basis new loan rates have dropped by up to 2%. Whilst formerly 12% was common, 10% (or less) now seems to be the default and (in my view) if anything the quality of security has fallen rather than improved. I get the feeling that this accounts for the large update by borrowers but the need to complete most loans by underwriting.
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Post by meggem on Aug 6, 2014 16:40:28 GMT
What I have noticed over the past 6 months is that rates for lenders have tumbled making Asset Capital much less competitive as a platform. This could underlie the expansion in loans and underwriting.
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