blender
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Post by blender on Mar 17, 2018 10:45:55 GMT
Just starting a new thread on this, for the facility to see credit and other information on borrowers which will be regularly updated. This was uploaded yesterday evening, 16 March 2018.
Personally I think this is an excellent initiative. The supervision of loans after the initial assessment and due diligence, by some platforms, is very limited. For unsecured loans and using a high-diversity lending model, this is understandable, and cheap. For platforms which offer secured loans, and particularly where there is a continuing relationship with a borrower or guarantor over a number of loans, the supervision of the relationship is much more important. Offering secured loans and not supervising that security sufficiently (as seen in some cases, mostly elsewhere) is the worst of both worlds. Giving visibility of some of the supervision process is valuable, and builds confidence in the platform. Ablrate's recent change to, for the greater part, monthly fees from the borrower, is compatible with ongoing supervision of the loans, and it is good to see some of the evidence of that supervision. Impressive.
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SteveT
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Post by SteveT on Mar 17, 2018 11:31:41 GMT
ablrate, I agree this an excellent step but, since the new credit information provided could well be price-sensitive for the SM (especially when/if it changes significantly), please could you address a few questions that spring to mind: a) When / how often will the CreditSafe information be updated? Is there a regular cycle (monthly? quarterly?) or is it simply whenever a contributory piece of information changes (eg. new accounts filed, new CCJ registered, etc.)? b) For loans to new subsidiaries / SPVs (eg. S******mode Ltd) where currently the Company Overview page shows nothing, accounts having yet to be filed, can the Company Overview page instead show the latest Creditsafe summary for the parent company that is providing the corporate guarantee (per the original loan documents)? c) Will there be an automatic notification to lenders when new Creditsafe information is posted, and will SM trading be paused briefly to allow it to be digested (and Bids / Offers amended as required)? Otherwise I can foresee the complaints that Assetz Capital used to get, when negative company information emerged, of lenders suddenly finding their Bids filled by other lenders who'd cottoned on sooner. Thanks
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Post by scottdt on Mar 17, 2018 12:36:24 GMT
I’m also very pleased to see the additional information however I’m not sure how to interpret it or what conclusions to draw from it. For example, I instantly sold out of D*********** E****** Refinance II yesterday as soon as I saw that the rating had dropped from 48 to 11 and that there was no trading information for 2017. I’m not sure whether I over reacted or not, it’s not the only loan with a low score on the platform. I’d be interested to know how much emphasis other investors would put on the risk score versus other aspects of the loan like the perceived quality of any underlying security.
Thanks.
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Post by ablrate on Mar 17, 2018 13:08:55 GMT
Its the first part of a number of additions. We are working on an internal rating that uses a algo based on the credit score and the security.
It is always important to familiarise yourself with the security as the company may be new or an spv etc.. and all carry PGs that are worth having.
We take Steve's point as it may bw useful to include group companies as many have group guarantees and that is available on the API.
As far as pausing etc on new info.. we will take a look.
The info is renewed monthly. I.e the first time it is viewed in a new month it updates with any new info.
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toast
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Post by toast on Mar 17, 2018 13:11:01 GMT
I saw that the rating had dropped from 48 to 11 Oh, but it's an "11" with a green background, so it's all good!
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blender
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Post by blender on Mar 17, 2018 13:46:33 GMT
I saw that the rating had dropped from 48 to 11 Oh, but it's an "11" with a green background, so it's all good! So it's not toast? Toast is brown.
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Post by dan1 on Mar 17, 2018 13:50:06 GMT
Please can all those selling loans 1000039, 1000049 & 1000078 (D*********** E******) at a discount also sell the loans with the same director (AF) at a tasty discount too? Willing buyers are waiting
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Post by Deleted on Mar 17, 2018 13:59:44 GMT
Can anyone cut and paste part of a page to show where this feature is? I have a whole load of laons which start "#" which is lovely but is not a number....
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Post by dan1 on Mar 17, 2018 14:04:02 GMT
Can anyone cut and paste part of a page to show where this feature is? I have a whole load of laons which start "#" which is lovely but is not a number.... Not quite sure what you're after but are you on the New UI?
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Post by Deleted on Mar 17, 2018 14:15:46 GMT
Yes according to the URL I think I'm on the NewUI/Lender/Dashboard/Overview.aspx
I'm looking for the "rating" number
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archie
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Post by archie on Mar 17, 2018 14:21:08 GMT
Yes according to the URL I think I'm on the NewUI/Lender/Dashboard/Overview.aspx I'm looking for the "rating" number Either look at the company overview tab or the trade page. Click on 'Company Trading Report'.
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Post by Deleted on Mar 17, 2018 14:30:11 GMT
Thanks Archie, that is well hidden :-) Perhaps they could put the A-Z into the "#" space so the 4 clicks could be reduced per company (writing as a sophisticated investor) :-)
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Post by scottdt on Mar 17, 2018 15:28:33 GMT
ablrate what time period do the “probability of default” and “odds of failure” relate to e.g. within the next 12 months?
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rgog
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Post by rgog on Mar 17, 2018 15:41:04 GMT
It would be useful to know why it fell from 48 to 11?
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archie
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Post by archie on Mar 17, 2018 15:43:01 GMT
It would be useful to know why it fell from 48 to 11? Was the CCJ there before?
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