lobster
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Post by lobster on Mar 9, 2018 10:18:36 GMT
May I ask ..... If a number of different lenders are trying to sell the same loan, all at the maximum 1.0% discount , then how does the FS system order the sales queue? I would assume that it's simply ordered by time - ie. the lender who put in the instruction first will also be first in the sales queue - is that right ? I'm just asking because I'm trying to sell something at 1% discount, and it looks like other sellers are jumping ahead of me in the queue - can't quite understand it to be honest  |
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SteveT
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Post by SteveT on Mar 9, 2018 10:25:13 GMT
May I ask ..... If a number of different lenders are trying to sell the same loan, all at the maximum 1.0% discount , then how does the FS system order the sales queue? I would assume that it's simply ordered by time - ie. the lender who put in the instruction first will also be first in the sales queue - is that right ? I'm just asking because I'm trying to sell something at 1% discount, and it looks like other sellers are jumping ahead of me in the queue - can't quite understand it to be honest It ranks them according to the calculated return to term, which varies according to exactly when someone bought their part originally. If you bought yours 120 days ago and someone else bought theirs only 119 days ago, their part will have slightly less accrued interest and so offer a slightly better rate of return. So, at the same discount, theirs will go ahead of yours in the list. I think there may also be an element of rounding in the return calculation since sometimes listing a small part of a larger part gives it a better place in the list (eg. listing £50 of a £500 part)
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Liz
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Post by Liz on Mar 9, 2018 10:38:25 GMT
May I ask ..... If a number of different lenders are trying to sell the same loan, all at the maximum 1.0% discount , then how does the FS system order the sales queue? I would assume that it's simply ordered by time - ie. the lender who put in the instruction first will also be first in the sales queue - is that right ? I'm just asking because I'm trying to sell something at 1% discount, and it looks like other sellers are jumping ahead of me in the queue - can't quite understand it to be honest There is no queue per se. If there are 10 loan part at the same discount I can choose to buy any. Or even buy one at a lower discount, which I have done before.
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rogerthat
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Post by rogerthat on Mar 9, 2018 10:44:13 GMT
May I ask ..... If a number of different lenders are trying to sell the same loan, all at the maximum 1.0% discount , then how does the FS system order the sales queue? I would assume that it's simply ordered by time - ie. the lender who put in the instruction first will also be first in the sales queue - is that right ? I'm just asking because I'm trying to sell something at 1% discount, and it looks like other sellers are jumping ahead of me in the queue - can't quite understand it to be honest Lobsters and their queues eh ! As it happens...I cant answer your question..but whilst staring at the weeds in t'garden and slurping my life prolonging morning cuppa this came to mind. They are listed (as you correctly summised and where prem/disc are indentical) in time of upload. One would assume that if x put their sale up 6 hours before your own, yours technically would have less time to maturity and therefore the effective doo dah would be slightly different. Also a crucial thing to remember is that a buyer doesn't have to pick your loan to buy even if its at the top of the list..an odd thought I know..but a seller below yours in the list might just have the exact amount the buyer is looking to spend and that might tempt them lower down. With so much on the SM at present, the difference between effective rates of interest are often marginal (0.01) if not identical Anyway, I'm happy to be enlightened but that's as much as my brain can offer at this time of day Just read Lizzies & SteveT's post above so I wasn't far off
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lobster
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Post by lobster on Mar 9, 2018 11:08:02 GMT
May I ask ..... If a number of different lenders are trying to sell the same loan, all at the maximum 1.0% discount , then how does the FS system order the sales queue? I would assume that it's simply ordered by time - ie. the lender who put in the instruction first will also be first in the sales queue - is that right ? I'm just asking because I'm trying to sell something at 1% discount, and it looks like other sellers are jumping ahead of me in the queue - can't quite understand it to be honest It ranks them according to the calculated return to term, which varies according to exactly when someone bought their part originally. If you bought yours 120 days ago and someone else bought theirs only 119 days ago, their part will have slightly less accrued interest and so offer a slightly better rate of return. So, at the same discount, theirs will go ahead of yours in the list. I think there may also be an element of rounding in the return calculation since sometimes listing a small part of a larger part gives it a better place in the list (eg. listing £50 of a £500 part) Thanks all for useful replies . SteveT - your hunch was 100% spot on ! ie. If I reduce the amount I'm selling, then the calculated "return to term" percentage increases marginally, doubtless due to rounding as you mentioned. Interesting stuff - plenty for a lobster to chew on 
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number5
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Post by number5 on Mar 9, 2018 11:56:46 GMT
Is it me or is someone buying small chunks of all these loans and then selling them at discount....sometimes high enough discount that they are making a loss
What are they playing at...they are not even selling up, because they are investing again in loans that are just a couple of days old!!
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Liz
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Post by Liz on Mar 12, 2018 21:41:59 GMT
Upto 132 at max discount 😢
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number5
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Post by number5 on Mar 12, 2018 21:49:25 GMT
Upto 132 at max discount 😢 Any reason all these people are selling at max discount all of a sudden??!
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Liz
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Post by Liz on Mar 12, 2018 21:51:22 GMT
Upto 132 at max discount 😢 Any reason all these people are selling at max discount all of a sudden??! After Col failure, losses at FS, MT and Lendy et al, some are jumping ship.
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number5
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Post by number5 on Mar 12, 2018 21:55:16 GMT
Any reason all these people are selling at max discount all of a sudden??! After Col failure, losses at FS, MT and Lendy et al, some are jumping ship. How long are we expecting this to go on for...??
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Liz
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Post by Liz on Mar 12, 2018 22:02:52 GMT
After Col failure, losses at FS, MT and Lendy et al, some are jumping ship. How long are we expecting this to go on for...?? No idea. Hopefully ISA season will see more money clearing some loans. Worst case, FS can't fill loans, can't make money and runs down its loanbook.
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jj
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Post by jj on Mar 12, 2018 22:29:51 GMT
All these problems stem from money invested in loans not being recycled.
So you see loans not being redeemed at the giving time what do you do ? Oh, I better sell off before the 30 days so I can recycle my money. Hence 1% discount on the loans for sale, with the list only getting longer.
If FS wants its loans to be filled & sort out the 2nd market it need to get serious about the overdue loans . Its a downward spiral which means iffy loans not being filled.
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Liz
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Post by Liz on Mar 12, 2018 22:38:09 GMT
FS can't put a lot of renewals on the PM lest they clog that too. So we are all going to be locked in our loans soon.
I do think we are either going to see 14% as the new norm or cashback 💷💷💷💷💷💷💷💰💰💰💰💰💰💰💵💵💵💵💵💵💴💴💴💴💴💸💸💸💸💸💸
Paying underwriters can't be cheap.
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r00lish67
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Post by r00lish67 on Mar 12, 2018 23:06:14 GMT
Aside from it just simply being the sensible thing to do for all parties (IMV), I would personally find it nerdily fascinating as to which of the 139 (!) max discount loans attract the most discount. Interesting fact - of those 139, the jolly-around-the-world boat is somehow not currently one of them. C'mon fundingsecure , shake the bottle, wake the taste  |
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Post by dan1 on Mar 12, 2018 23:28:04 GMT
fundingsecure may have made a rod for their own back when they reduced the premium/discount to 1%. Given that was done to protect themselves against claims from HMRC of knowingly allowing folks to artificially (artificial in the context of a market) boost the value of their ISAs to now widen those discounts on the eve of a new tax year may not be a risk the business is willing to accept without clear and unambiguous legal advice to the contrary. ... or they don't perceive the problem we all know it could be... or perhaps they believe it will clear at the start of the next tax year... or they genuinely believe substantial repayments are imminent (how this forum has really ruined that word for me).
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