|
Post by GSV3MIaC on Dec 14, 2017 16:14:19 GMT
Email received and data now up (in public area) of the website .. see www.ablrate.com/portfolio-loans/I have one query for ablrate already .. the diversified portfolio loans page says "As an example, if you have allocated £1,000 to a DPL and that DPL has three 3 loans allocated, you will be spread across those loans with £333.33 in each. ", which seems to imply the existence of more than ONE ('a') DPL .. maybe it should read 'your DPL' rather than ' A DPL', or can I indeed have more than one? (Oh, and part of the "three/3" is redundant). Looks rather like the AC GBBA account to me. There is also a certain uncertainty about the rate(s) for these accounts .. at least I couldn't find more than the range(s).
|
|
|
Post by ablrate on Dec 14, 2017 16:45:26 GMT
Email received and data now up (in public area) of the website .. see www.ablrate.com/portfolio-loans/I have one query for ablrate already .. the diversified portfolio loans page says "As an example, if you have allocated £1,000 to a DPL and that DPL has three 3 loans allocated, you will be spread across those loans with £333.33 in each. ", which seems to imply the existence of more than ONE ('a') DPL .. maybe it should read 'your DPL' rather than ' A DPL', or can I indeed have more than one? (Oh, and part of the "three/3" is redundant). Looks rather like the AC GBBA account to me. There is also a certain uncertainty about the rate(s) for these accounts .. at least I couldn't find more than the range(s). Hi You can have more than one DPL (or SCPL obviously). For example, one could be for asset finance, one for property etc. The rate will be a target rate for each specific DPL dependent on what typical rate we can achieve in that sector/type of loan. three/3 changed .. thanks..
|
|
|
Post by GSV3MIaC on Dec 14, 2017 16:49:55 GMT
Thanks ablrate .. so what determines whether a new loan turns a 3-loan DPL into a 4-loan DPL (as per the example) or starts a new 1-loan DPL? Is is really-really like AC, and we'll have business DPL, property DPL, wind turbine DPL, and so on .. if so, do you have a list yet of what categories you are considering??
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Dec 14, 2017 17:07:47 GMT
Without getting into the detail yet, I would like to welcome this initiative from Ablrate and the underlying wish to grow and expand the platform. It is also refreshing that, rather than serve up a take-it-or-leave-it offering, Ablrate are willing to engage with lenders in developing the process. In principle, all good.
|
|
elliotn
Member of DD Central
Posts: 3,063
Likes: 2,681
|
Post by elliotn on Dec 14, 2017 17:12:59 GMT
The more choice, the better - as long as the risk/reward holds up - and hopefully this doesn't impair the recent uptick on individual loans we have enjoyed recently too 😊
|
|
andy1
Member of DD Central
Posts: 103
Likes: 107
|
Post by andy1 on Dec 14, 2017 17:22:00 GMT
Doesn't that mean that every loan within a DPL needs to be exactly the same value to work? Seems a little impractical or am I missing something?
|
|
|
Post by GSV3MIaC on Dec 14, 2017 17:33:37 GMT
I assume they were simplifying, and you might wind up with 300, 300, 300, 100. Or you might have actually started with 350, 350, 300.
|
|
|
Post by ladywhitenap on Dec 14, 2017 17:33:58 GMT
I'd like to see some clear statements of how these portfolio loans will be reported to both lenders and prospective lenders.
Whilst these proposals can be a seen as a relatively simple wrapper, the underlying detail could be come quite complex.
I have formed the opinion over the last couple of years that ABL and somewhere in the middle of the "openness" scale of reporting and that they could do with being rather more open when it comes to reporting and I hope these portfolio loans will lead to more clarity from ABL rather than obfuscation in the guise of simplification.
LW
|
|
macq
Member of DD Central
Posts: 1,923
Likes: 1,189
|
Post by macq on Dec 14, 2017 17:39:34 GMT
is this only for lump sums or is there a facility for regular monthly lump sums as well?
|
|
eeyore
Member of DD Central
Posts: 739
Likes: 729
|
Post by eeyore on Dec 14, 2017 17:44:05 GMT
May I follow on from GSV3MIaC's query above, specifically the sentence immediately after which says: "When a fourth loan is made you will have £250 in each, etc." How does that work from the borrowers' perspective? Where do the funds come from to pay the fourth loan? I'm guessing this is what the "new tranches" are all about, but what if there's no take-up of the tranche and no new money is invested?
And the sentence that follows on from that "In each case, new security will be take on a stand alone basis for each loan securing each portion of your allocated DPL loan." makes no sense to me! I assume there's a typo in there somewhere...
What appeals to me about this ABLrate approach (assuming I've understood it correctly) is that risk of default is shared equally between lenders (in proportion to the investment in each portfolio). I've run-down my investment in Funding Circle since the new Autobid-only policy was implemented simply because the default risk was inequitable - some lenders might have no defaults, some lenders could theoretically have all their funds automatically assigned to loans which default. I'm much more comfortable with the mutual funds approach where we all get the same rate of return.
|
|
oldtimer
Member of DD Central
Posts: 211
Likes: 156
|
Post by oldtimer on Dec 14, 2017 18:01:38 GMT
ablrate can you hold these portfolio loans within an IFISA?
|
|
jfm
Member of DD Central
Posts: 135
Likes: 67
|
Post by jfm on Dec 14, 2017 20:41:49 GMT
@ablate why does the SCPL have a capped rate? What are the risks or costs the surplus is intended to cover?
Does the borrower have any guarantee that future tranches will be funded?
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Dec 14, 2017 22:48:48 GMT
@ablate why does the SCPL have a capped rate? What are the risks or costs the surplus is intended to cover? Does the borrower have any guarantee that future tranches will be funded? Good point. For projects such as property development the whole required amount will need to be guaranteed when the first tranche is drawn down. Subject to progress and security of course. Otherwise no developer would accept. FC had to do this and at times had to use a subsidiary lender business to make up the difference, when a tranche could not be funded. This is a different funding process, but the principle remains.
|
|
keith
Member of DD Central
Posts: 118
Likes: 72
|
Post by keith on Dec 15, 2017 5:31:16 GMT
I think this is a great initiative. I quite like the approach that as the loan book grows diversity automatically increases. Of course, the converse applies so after, say, a year or so, you need to watch that the loan book at least remains constant.
|
|
|
Post by GSV3MIaC on Dec 15, 2017 8:47:45 GMT
ablrate can you hold these portfolio loans within an IFISA? I'm not ablrate, but i'm fairly sure the answer is yes ... the isa behaves just like any other ablrste account, except it has funding limits (£20k new money, plus prior isa transfers in).
|
|