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Post by tomas on Jun 29, 2018 11:00:16 GMT
What could be the consequences? Does it mean that the biggest share of Mogo investments will be bought out by Mogo afther July 11? Could that also mean a huge pressure on existing primary and secondary loan listing for investors to locate their spare cash after repurchasings. blog.mintos.com/mogo-has-issued-a-bond-worth-eur-50-million/
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Rob
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Post by Rob on Jul 2, 2018 9:47:19 GMT
Firstly, this is a re-run of the Hipocredit scandal, the difference being that we have been forewarned. Hipocredit bought back loans paying a high interest rate, only to relist them at a much lower rate. Mogo have acquired cheap funding elsewhere to buy back the loans. What I don't understand is why they are still listing loans at 13 and 14% if they are intending to buy back loads of them? Why not use their cheap funding to fund the loans currently listed? Who will buy the loans listed knowing that a huge buyback is imminent? I am sure that their first priority will be to buy back the highest-paying loans.
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fric
Member of DD Central
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Post by fric on Jul 2, 2018 10:20:18 GMT
This is not their first bond issuance, other loans may be there as well. Might as well just be refinancing the existing loans/bonds to get a lower interest rate and save money on current interest payments to Mogo investors/lenders (not to confuse with people on Mintos investing in Mogo loans).
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Post by nellerdk on Jul 3, 2018 22:55:00 GMT
Firstly, this is a re-run of the Hipocredit scandal, the difference being that we have been forewarned. Hipocredit bought back loans paying a high interest rate, only to relist them at a much lower rate. Mogo have acquired cheap funding elsewhere to buy back the loans. What I don't understand is why they are still listing loans at 13 and 14% if they are intending to buy back loads of them? Why not use their cheap funding to fund the loans currently listed? Who will buy the loans listed knowing that a huge buyback is imminent? I am sure that their first priority will be to buy back the highest-paying loans. I think this is quite speculative, Rob, and I wouldn't call it a scandal it that happens.
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kulerucket
Member of DD Central
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Post by kulerucket on Jul 9, 2018 11:00:49 GMT
Firstly, this is a re-run of the Hipocredit scandal, the difference being that we have been forewarned. Hipocredit bought back loans paying a high interest rate, only to relist them at a much lower rate. Mogo have acquired cheap funding elsewhere to buy back the loans. What I don't understand is why they are still listing loans at 13 and 14% if they are intending to buy back loads of them? Why not use their cheap funding to fund the loans currently listed? Who will buy the loans listed knowing that a huge buyback is imminent? I am sure that their first priority will be to buy back the highest-paying loans. I read on buttchopf23's blog here: here, that this was more down to regulation changes in Latvia. However they did re-list with a lower rate so even so probably used the opportunity to their advantage. I never saw any of mine re-bought that I can remember.
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Post by patright on Jul 12, 2018 14:06:46 GMT
seems clear that it's the case, buy back the one at 14%, relist them at 11% massive loan book repurchase should not be allowed at it undermines the confidence, of course I am sure legally it's fine..ethically however, questionable
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stevio
Member of DD Central
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Post by stevio on Jul 12, 2018 14:42:08 GMT
From a financial point of view we cant really blame them reducing costs, but it is not great news for us lenders
They were great cashback and interest payers (unusually if they knew they would get cheaper funding, maybe it wasnt confirmed)
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Post by gmaxkenny on Jul 12, 2018 22:46:22 GMT
Thats Mogo off my list and after Hipocredit as well its goodbye to Mintos from me. The rates we are getting now from P2P in general do not reflect the risk and as the odds of a recession in 2019 increase I for one will be reducing my exposure to this sector especially as has already been shown the buyback guarantee offered by loan originators is worthless.
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Post by patright on Jul 13, 2018 6:05:08 GMT
Thats Mogo off my list and after Hipocredit as well its goodbye to Mintos from me. The rates we are getting now from P2P in general do not reflect the risk and as the odds of a recession in 2019 increase I for one will be reducing my exposure to this sector especially as has already been shown the buyback guarantee offered by loan originators is worthless. It's definitely time to reduce exposure to high risk, the crash could take place as early as this fall as far I am concerned
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Post by explorep2p on Jul 13, 2018 16:52:48 GMT
What's surprising about this buyback is that Mogo just recently ran a pretty generous and long running cashback offer to entice people to purchase their loans. If they knew that they had some cheap funding coming on the horizon it is surprising that they would do this. In any case there may well be some investors who received up to 5% cashback and may now have these loans repurchased. That's a pretty good short term return....!
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stevio
Member of DD Central
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Post by stevio on Jul 13, 2018 18:37:26 GMT
What's surprising about this buyback is that Mogo just recently ran a pretty generous and long running cashback offer to entice people to purchase their loans. If they knew that they had some cheap funding coming on the horizon it is surprising that they would do this. In any case there may well be some investors who received up to 5% cashback and may now have these loans repurchased. That's a pretty good short term return....! Unusual, as I said Trouble is, what to reinvest the buybacks in
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Post by extremis on Jul 13, 2018 19:26:51 GMT
What's surprising about this buyback is that Mogo just recently ran a pretty generous and long running cashback offer to entice people to purchase their loans. If they knew that they had some cheap funding coming on the horizon it is surprising that they would do this. Unless their success in attracting the cheap funding has something to do with the huge selloff to Mintos' investors. Also, who pays the campaign rewards, Mintos or the loan originator? If it was Mintos, they could be unaware of the forthcoming Mogo's buyback, or simply don't care about it as their primary concern is to expand (i.e. attract both new investors and loan originators to the marketplace).
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Post by tomas on Jul 14, 2018 6:56:21 GMT
What's surprising about this buyback is that Mogo just recently ran a pretty generous and long running cashback offer to entice people to purchase their loans. If they knew that they had some cheap funding coming on the horizon it is surprising that they would do this. In any case there may well be some investors who received up to 5% cashback and may now have these loans repurchased. That's a pretty good short term return....! Unusual, as I said Trouble is, what to reinvest the buybacks in Probably to make this funding successful good cash position and ability to attract funding elsewhere and in a matter of seconds was important for Mogo. Now from today the massive repurchasing started:(
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fric
Member of DD Central
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Post by fric on Jul 16, 2018 8:14:05 GMT
Yes, Mogo did buyback a lot of paying loans on Saturday, I see a lot 13.5% older loans bought back. Was surprised to see a significant cash stack this morning just sitting in my account.
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Post by nesako on Jul 16, 2018 8:44:00 GMT
Yes, Mogo did buyback a lot of paying loans on Saturday, I see a lot 13.5% older loans bought back. Was surprised to see a significant cash stack this morning just sitting in my account. Interesting, I have loads of Mogo loans (most 13%+) and did not get a single one bought back over the weekend... it could be that you will soon see even bigger cash stack once they expand the buyback...
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