SteveT
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Post by SteveT on Apr 2, 2016 20:18:39 GMT
Is anyone willing to admit buying at a 3, 4 or 4.5% discount ? Very little left at even 2% and 1.5% discount now, although a few thousand at 1%. Those canny buyers at 4% / 4.5% discount must be chuffed!
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Apr 2, 2016 21:03:10 GMT
Is anyone willing to admit buying at a 3, 4 or 4.5% discount ? Maybe the borrower has opened a lender account and is buying up their own loan at a discount. Not sure if it's allowed, but it could be difficult to detect if it's a friend of the borrower.
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sl75
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Post by sl75 on Apr 2, 2016 21:23:42 GMT
Is anyone willing to admit buying at a 3, 4 or 4.5% discount ? I took the opportunity to get a few small pieces. The loan has been suspended for so long that my maximum exposure per borrower had increased in the meantime, and whilst I'd have been reluctant to increase exposure at par, a 4% discount seemed to me an opportunity not to be missed. (Got about £3 awaiting investment in my MLIA right now if anyone wants to put more up at similar levels of discount!)
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Post by Butch Cassidy on Apr 3, 2016 7:17:01 GMT
Is anyone willing to admit buying at a 3, 4 or 4.5% discount ? Yes I picked some up at 5% discount (on a -4% buy order); They have run this business for 30 years so the problem is the loan affordability not the borrowers commitment, as long as lenders/AC remain flexible I see this one as surviving & in the worst case scenario there is still some asset security to fall back on but hopefully that won't be the case. In any event the SM will look a lot different in say 12 months time where 12% will probably sell at par, so I am potentially looking at 17% return for short term hold however my driving instinct is to support hard working SME's (even where the facts may not look too promising). Those unhappy with this loan can now sell out (now AC have finally acted on the suspension issue) whilst those of us prepared to risk long term exposure can benefit from discounted parts & only time will tell who is correct. Is it just me or was that not how the market was supposed to work? 
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Apr 3, 2016 8:04:41 GMT
I just sold mine at -4%.
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agent69
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Post by agent69 on Apr 3, 2016 9:16:59 GMT
Is anyone willing to admit buying at a 3, 4 or 4.5% discount ? Those canny buyers at 4% / 4.5% discount must be chuffed! Maybe there the ones currently selling at -1.5%?
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andy2001
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Post by andy2001 on Apr 4, 2016 16:40:31 GMT
I sold over half my holding at a 2.5% discount.
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Post by profunder on Apr 4, 2016 17:30:02 GMT
Interesting trading, I was hoping for a 20% discount  ?. Given the small discounts though people seem relatively confident. My fear is that only a fraction of interest will be paid, before capital is returned or even partially returned. Hope I'm wrong, I haven't done detailed affordability analysis. |
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Post by mrclondon on Apr 4, 2016 18:02:15 GMT
Interesting trading, I was hoping for a 20% discount ?. Given the small discounts though people seem relatively confident. My fear is that only a fraction of interest will be paid, before capital is returned or even partially returned. Hope I'm wrong, I haven't done detailed affordability analysis. I've tried, but without greater access to the management accounts of the business it's close to impossible. Affordability per se is only part of the issue. My greater fear is the working capital of the business already under strain due to the losses incurred in recent years, becomes stretched too far and suppliers respond by reducing credit terms effectively forcing the closure of the business unless an equity injection is made.
Most of the trading volume on the SM has been at 2.5% to 4% discount, and I can well see trading at a 1% discount occurring in the not too distant future. Think of those pictures we see on the news on boxing day each year of the hordes buying anything in the sales just because it has a discount. The problem is there will be a major outcry in due course when people realise what they have bought, and the Q&A page for this loan is going to provide countless hours of entertainment over the coming years.
Will be interesting to see how the discount levels being offered react when one of the (now) weekly repayments is missed.
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Post by profunder on Apr 4, 2016 20:08:55 GMT
Interesting trading, I was hoping for a 20% discount ?. Given the small discounts though people seem relatively confident. My fear is that only a fraction of interest will be paid, before capital is returned or even partially returned. Hope I'm wrong, I haven't done detailed affordability analysis. I've tried, but without greater access to the management accounts of the business it's close to impossible. Affordability per se is only part of the issue. My greater fear is the working capital of the business already under strain due to the losses incurred in recent years, becomes stretched too far and suppliers respond by reducing credit terms effectively forcing the closure of the business unless an equity injection is made.
Most of the trading volume on the SM has been at 2.5% to 4% discount, and I can well see trading at a 1% discount occurring in the not too distant future. Think of those pictures we see on the news on boxing day each year of the hordes buying anything in the sales just because it has a discount. The problem is there will be a major outcry in due course when people realise what they have bought, and the Q&A page for this loan is going to provide countless hours of entertainment over the coming years.
Will be interesting to see how the discount levels being offered react when one of the (now) weekly repayments is missed.
Yes, although I asked what discount people would offer if reopened, I'm surprised it did. If the interest rate was say 2% higher would people be paying a 5% premium for the loan? Of course not. With a 4% discount that's equivalent to about an extra 1% per year. (Approximately only). Maybe Assetz should show the equivalent interest rate to people when buying a loan at discount.. But that's imperfect when payments are early or late in future.
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sl75
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Post by sl75 on Apr 5, 2016 12:08:15 GMT
Will be interesting to see how the discount levels being offered react when one of the (now) weekly repayments is missed. Will also be interesting to see what happens when payments start being allocated to capital... e.g. how many investors will then seek to "top up", ignoring the increasingly large amount of unpaid interest?
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Bagman
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Post by Bagman on Apr 6, 2016 12:15:02 GMT
chris Do the discounted amounts shown for sale include the parts you have up for sale yourself ?
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oldgrumpy
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Post by oldgrumpy on Apr 6, 2016 12:20:14 GMT
To jump on this, when I was selling a few bits for -2% they were not showing as available on the loan page when I checked.
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sl75
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Post by sl75 on Apr 6, 2016 20:44:30 GMT
To jump on this, when I was selling a few bits for -2% they were not showing as available on the loan page when I checked. When logged in from a different account? Pretty sure that AC are one of the sites that specifically avoid showing your own loan parts as being available for you to buy. Edit: Right now, I see £678.80 available at a 2% discount... yours?
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oldgrumpy
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Post by oldgrumpy on Apr 6, 2016 23:37:40 GMT
To jump on this, when I was selling a few bits for -2% they were not showing as available on the loan page when I checked. When logged in from a different account? Pretty sure that AC are one of the sites that specifically avoid showing your own loan parts as being available for you to buy. Edit: Right now, I see £678.80 available at a 2% discount... yours? No. I only checked through my own account ( a few days back), and assumed it likely that Bagman was doing the same.
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