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Post by westcountryfunder on Aug 2, 2018 14:41:49 GMT
Has anyone else noticed that new such loans are getting a !% discount by way of increased allocations?
For example on #787, 789, 791, 792.
Coupled with today's email about the MLA, perhaps there is shortage of money coming in.
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SteveT
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Post by SteveT on Aug 2, 2018 14:54:08 GMT
They are discounted loan parts offered for sale by underwriters (passing on some of their margin to turn over their funds faster)
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Post by westcountryfunder on Aug 2, 2018 14:59:28 GMT
They are discounted loan parts offered for sale by underwriters (passing on some of their margin to turn over their funds faster) Well, that certainly makes a worthwhile difference to the yield, especially on a 5 month loan (#789)! 
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Post by Ace on Aug 2, 2018 15:59:34 GMT
They are discounted loan parts offered for sale by underwriters (passing on some of their margin to turn over their funds faster) Well, that certainly makes a worthwhile difference to the yield, especially on a 5 month loan (#789)! I had a look at #789, but couldn't understand how an LTV could be calculated given that all values in the security tab were zero. I guess the Note in the First Charge section was supposed to enlighten me, but I totally failed to understand it! Any ideas? Academic now, since the discount has gone though.
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trevor
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Post by trevor on Aug 2, 2018 19:10:18 GMT
I must be losing it in my old age. Where is the notification of the 1% discount?
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star dust
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Post by star dust on Aug 2, 2018 19:31:01 GMT
I must be losing it in my old age. Where is the notification of the 1% discount? It's in the small print  . Hover over the availability in the live loans list, and if there's any at -1% it will say. Then Click on the loan to bring its page up, and click again on the amount available to see how much is available at a discount. It might be as much as <0 nanopence if someone/s have got there before you though.
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walktall7
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Post by walktall7 on Aug 2, 2018 20:20:47 GMT
Loan 791 has a discount, bring up the loan , and then click on the amount available and you should see the discounts
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Post by df on Aug 2, 2018 20:51:27 GMT
Well, that certainly makes a worthwhile difference to the yield, especially on a 5 month loan (#789)! I had a look at #789, but couldn't understand how an LTV could be calculated given that all values in the security tab were zero. I guess the Note in the First Charge section was supposed to enlighten me, but I totally failed to understand it! Any ideas? Academic now, since the discount has gone though. I've noticed this with many upcoming loans, security value appears when they drawdown. If it says zero, you can still find out by reading documents section.
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trevor
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Post by trevor on Aug 2, 2018 20:57:00 GMT
Thanks both
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trevor
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Post by trevor on Aug 2, 2018 21:03:49 GMT
The 34.7% is the total loan amount divided but the GDV from the credit report.
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victors
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Post by victors on Aug 3, 2018 7:55:07 GMT
I do wish there was a filter when browsing loans to see all loans with a discount.
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bigfoot12
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Post by bigfoot12 on Aug 3, 2018 10:36:13 GMT
Coupled with today's email about the MLA, perhaps there is shortage of money coming in. What was the email about the MLA? I don't seem to have received it.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 3, 2018 10:45:45 GMT
Coupled with today's email about the MLA, perhaps there is shortage of money coming in. What was the email about the MLA? I don't seem to have received it. Just a marketing update for the account telling how much & how many loans were available & how the account worked, plus 4 examples of recent loans.
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sl75
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Post by sl75 on Aug 27, 2018 9:04:51 GMT
Has anyone else noticed that new such loans are getting a !% discount by way of increased allocations? For example on #787, 789, 791, 792. Coupled with today's email about the MLA, perhaps there is shortage of money coming in. #758 too, which highlights the problem even more... There was already discounted availability left over from the initial drawdown, and now a further advance of over £250k has been added to it. Any hope of the discounted backlog clearing must be set against the "repayments" schedule which shows that AC expect to fund a further £2.8M of advances over the next 8 months, more than tripling the value of the loan from the initial drawdown. It looks to me like there may be significant risk that some of these types of loans may simply be unable to have their later tranches funded at all, as liquidity / confidence in the marketplace dries up completely - with loan units moving slowly at 1.0% discount, it's only a matter of time before an underwriter gets desperate enough that they offer 1.5% discounts, that the market at that level of discount becomes saturated, and someone offers 2.0% etc. I assume there's a (relatively low) limit to how much of a discount an underwriter can economically offer, before determining that it's simply not worth committing to fund any further loans/tranches... and then where will the money come from? Will we be left holding half-completed developments worth less than the outstanding loan amount when the developers are forced to cease development activity due to lack of funds?
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bg
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Post by bg on Aug 28, 2018 10:34:37 GMT
Has anyone else noticed that new such loans are getting a !% discount by way of increased allocations? For example on #787, 789, 791, 792. Coupled with today's email about the MLA, perhaps there is shortage of money coming in. #758 too, which highlights the problem even more... There was already discounted availability left over from the initial drawdown, and now a further advance of over £250k has been added to it. Any hope of the discounted backlog clearing must be set against the "repayments" schedule which shows that AC expect to fund a further £2.8M of advances over the next 8 months, more than tripling the value of the loan from the initial drawdown. It looks to me like there may be significant risk that some of these types of loans may simply be unable to have their later tranches funded at all, as liquidity / confidence in the marketplace dries up completely - with loan units moving slowly at 1.0% discount, it's only a matter of time before an underwriter gets desperate enough that they offer 1.5% discounts, that the market at that level of discount becomes saturated, and someone offers 2.0% etc. I assume there's a (relatively low) limit to how much of a discount an underwriter can economically offer, before determining that it's simply not worth committing to fund any further loans/tranches... and then where will the money come from? Will we be left holding half-completed developments worth less than the outstanding loan amount when the developers are forced to cease development activity due to lack of funds? Underwriters are just one of various funding methods AC employ. In fact I believe underwriters to be one of the smallest funding sources they use. Dev loans are carefully planned out with appropriate funding lined up to meet future tranches. To date traditional underwriting has never been used for later tranches on a dev loan so it is unlikely the discount situation on the loan in question will deteriorate dramatically or that future tranches can not be funded. For those that are interested, the loans with current discounts and amounts discounted are as follows:- # £ 389 190 758 276,438 801 81,612 804 130,124 765 4,873 774 33,108 791 226,755 730 39,435 524 25 531 10 540 1,072 766 13,288 768 3,651 775 1,181
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. Hover over the availability in the live loans list, and if there's any at -1% it will say. Then Click on the loan to bring its page up, and click again on the amount available to see how much is available at a discount. It might be as much as <0 nanopence if someone/s have got there before you though.
