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Post by khampson on Oct 12, 2017 10:51:43 GMT
Hi can anyone tell me what experience they have had when it comes to selling quantities of loans to give liquidity to your investment since the new lending portfolio went live earlier this month.
Thanks in advance
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r00lish67
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Post by r00lish67 on Oct 12, 2017 11:30:01 GMT
Hi can anyone tell me what experience they have had when it comes to selling quantities of loans to give liquidity to your investment since the new lending portfolio went live earlier this month. Thanks in advance I assume you mean the lending changes which went live last month (?). What sort of quantities are you looking to sell?
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Post by khampson on Oct 12, 2017 11:48:39 GMT
Yes, I am looking at cashing out around 2k thanks
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r00lish67
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Post by r00lish67 on Oct 12, 2017 11:53:10 GMT
Yes, I am looking at cashing out around 2k thanks Wouldn't worry about it. You'll probably have all of your money back within a day, and probably within hours. You'll see plenty of posts here if it becomes any worse than that. Obviously this would exclude any loans which have been downgraded/defaulted in the meantime, which will sit there for all eternity unless eventually recovered.
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blender
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Post by blender on Oct 12, 2017 13:58:38 GMT
Unless it's a £2k property loan part for sale.
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r00lish67
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Post by r00lish67 on Oct 12, 2017 14:34:27 GMT
Unless it's a £2k property loan part for sale. Probably take a bit longer then  Mind you, I had a lovely little cottage industry for a while, selling to what I assume were institutional investors. All of my 0.3% premium £20 loan parts would sit there unloved and untouched, but come Weds/Thurs (usually) my regular customers would pop in to buy basically any property loans with more than 6 months remaining at 0.9-1.2% premiums providing the loan parts were £200+ in size within the space of 3 minutes, totally disregarding the scores of small premium little bits. Sigh...
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voss
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Post by voss on Oct 12, 2017 14:46:40 GMT
Lovely. How did you discover the Wed/Thu thing?
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r00lish67
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Post by r00lish67 on Oct 12, 2017 14:54:53 GMT
Lovely. How did you discover the Wed/Thu thing? Just observation really. All of my property loan parts were always up for sale, and quite often on Weds/Thurs afternoon I would refresh to find £5k sitting in my account rather than the £5 there was moments before. Would then look at sold loan parts to see that they were all bought by one ID. Not totally reliable though, it might go very quiet for a week or two and then Tuesday morning would go nuts. I may be wrong about them being institutional, but a) they bought a hell of a lot and b) they disregarded smaller loan parts entirely even when the premium was significantly lower. I used to play with SME loans too (no bot, just FFF), but they had a nasty tendency to go RBR at inopportune moments.
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Post by Badly Drawn Stickman on Oct 12, 2017 18:13:04 GMT
Unless it's a £2k property loan part for sale. Probably take a bit longer then Mind you, I had a lovely little cottage industry for a while, selling to what I assume were institutional investors. All of my 0.3% premium £20 loan parts would sit there unloved and untouched, but come Weds/Thurs (usually) my regular customers would pop in to buy basically any property loans with more than 6 months remaining at 0.9-1.2% premiums providing the loan parts were £200+ in size within the space of 3 minutes, totally disregarding the scores of small premium little bits. Sigh... I never made the connection to days, but did accidentally find the anomaly. I guess like most people I had assumed smaller loans would sell better, but one day put a £1000 part up at 1% just to stop it showing when I was listing parts I hoped to sell. I was amazed when a certain Council in Devon snapped it up totally ignoring the same loans at 0.5% on £20 I was listing. After more experimentation there was a clear market. Even shorter term loans had a following but different customers.
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number5
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Post by number5 on Oct 12, 2017 23:52:58 GMT
Unless it's a £2k property loan part for sale. Why would this not sell?
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blender
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Post by blender on Oct 13, 2017 7:37:56 GMT
Only Autobid can buy it, and only for someone who has a portfolio of at least 200 times the size of the part, or £400k. We do not know how long a £2k property part will take to sell, but it could take some time.
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number5
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Post by number5 on Oct 13, 2017 12:20:30 GMT
Only Autobid can buy it, and only for someone who has a portfolio of at least 200 times the size of the part, or £400k. We do not know how long a £2k property part will take to sell, but it could take some time. But wouldn't it be broken down into smaller chunks and sold? I only hold £20 parts, but just out of curiosity really
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blender
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Post by blender on Oct 13, 2017 12:58:31 GMT
Sadly, no. FC loan parts are indivisible. The SME parts are reduced by amortisation, but a £2k property part retains full value until repayment, or worse.
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jcm9000
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Post by jcm9000 on Oct 30, 2017 11:28:19 GMT
As a data point i sold everything i had left. 800 quid gone in seconds. Leaves 40 quid i don’t really expect to get back. One year expirement with FC done, cost me about 20 quid all in so heyho, worth a try.
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nick
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Post by nick on Oct 31, 2017 10:16:11 GMT
I'm slowly selling down my book and routinely sell £5k lumps a couple times a week. In every case, the £5k has been realised in minutes if not seconds so I don't think liquidity on the sell side is an issue. One thing I have noticed is that my E graded loan parts are almost always selected for sale and often concentrated in the same loan. This is leaving my loan book increasingly concentrated in the loans that are left. So much for the random selection of loans picked for sale.
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Mind you, I had a lovely little cottage industry for a while, selling to what I assume were institutional investors. All of my 0.3% premium £20 loan parts would sit there unloved and untouched, but come Weds/Thurs (usually) my regular customers would pop in to buy basically any property loans with more than 6 months remaining at 0.9-1.2% premiums providing the loan parts were £200+ in size within the space of 3 minutes, totally disregarding the scores of small premium little bits.
