1% discount on new property development loans

Last I heard, it was believed that traditional underwriters are pretty far down the pecking order of funding methods AC employ (preferring to use "in-house" funding methods such as the cash reserve of the QAA/30DAA when possible).

You claim that "To date traditional underwriting has never been used for later tranches on a dev loan"... so who is now offering an amount equivalent to more than the first additional tranche of #758 at a 1% discount if it was not a traditional underwriter?

I too consider it unlikely that AC would so badly mismanage it that future tranches cannot be funded, but with so much of the marketplace seeming to be showing signs of stress, I definitely think it's a risk that should be borne in mind... especially given that some of the triggering factors are likely to be outside AC's control.


It wasn't so long ago that a list of loans with current discounts would be nearly empty nearly all of the time, and it had seemed to me that AC had purposely designed it that way (a big leap between not discounted at all and the minimum allowable discount).

I'm still buying up various discounted loan units, but now starting to become increasingly aware of the risk that liquidity may not return.