j
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Penguins are very misunderstood!
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Post by j on Sept 12, 2014 13:27:35 GMT
Seems to be a case of 'blink & you miss it'. Selection is growing though as S**** M******** has also now been extended, making 5 late bridges, with possibly L****** to come, so hopefully youll be able to pick some bits up. Looking for A****** myself!  I picked up some S M yesterday while it was still tradeable. It's strange how there was plenty of all the bridges on the market before they defaulted, but now next to nothing. Perhaps it's just because people don't realise they need new sale mandates for the "new" loans. Having read the update, the headline rate of 2% pm is appetizing. Reading the small print, it says the loan is repayable imminently. So, whilst one might have, say, 1 month's 2% interest, it's better to hold your money in a longer-term, albeit lower paying loan, as you end up earning more over a longer period of time. Unless of course one can jump with their funds from one defaulting bridging loan to another earning 1.5%+ pm if you have the time & risk appetite to do so. Each strategy works on a different level & I'm no knocking any of them btw.
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j
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Penguins are very misunderstood!
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Post by j on Sept 12, 2014 13:29:33 GMT
Forgot to add wonder how long the units in Eppy will last as that might go into default soon too. About £170k's worth available at the minute
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Post by Ton ⓉⓞⓃ on Sept 12, 2014 13:33:45 GMT
I picked up some S M yesterday while it was still tradeable. It's strange how there was plenty of all the bridges on the market before they defaulted, but now next to nothing. Perhaps it's just because people don't realise they need new sale mandates for the "new" loans. Having read the update, the headline rate of 2% pm is appetizing. Reading the small print, it says the loan is repayable imminently. So, whilst one might have, say, 1 month's 2% interest, it's better to hold your money in a longer-term, albeit lower paying loan, as you end up earning more over a longer period of time. Unless of course one can jump with their funds from one defaulting bridging loan to another earning 1.5%+ pm if you have the time & risk appetite to do so. Each strategy works on a different level & I'm no knocking any of them btw. And the Update makes it look like a couple of weeks before it's paid off. I hope we don't suck out all the value for the Borrower. It must complete this time.
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Post by Ton ⓉⓞⓃ on Sept 12, 2014 13:42:07 GMT
Andrew General question(s), if I may, about short-term bridging loans.... Currently on the books are some four BLs which have not repaid on time. I'm starting to lose track but I think these are: A** H** I** L** (plus B** which has somewhat different circumstances --- and I sold anyway following AC's answer to my specific question). I won't refer to the individual comments in the forum and Q&As to which AC has responded to elsewhere. And of course the default interest will be welcome when (I hope) it is paid. But is this track record typical for the sector? What might be expected in a less frothy property market? Is this a learning experience? Will AC be adopting any different approaches in offering BL's in the future (you must be spending a lot of time on dealing with the effects of the non-payments). Comments/discussion welcome..... Those loans all came from one broker and needless to say they have been difficult and time consuming. The nature of the loans is is that they need to sell or refinance by the end of the term and things can happen that delay that. Those things are out of our hands and frustrating, however we have no concerns that they will result in losses for the lenders. Are we still happy to work with this broker in the future or is all the extra legal work/monitoring making them too expensive? Bridges are handy for quick growth because of recycling funds but can have side 'effects'
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Post by andrewholgate on Sept 12, 2014 13:46:14 GMT
Lets just say we are reviewing it.
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Post by Ton ⓉⓞⓃ on Sept 12, 2014 14:06:25 GMT
Yes. New loan model facilitates this. Will also automatically merge loan units together. So buy 5 £20 loan units and you'll end up with one £100 loan unit. To add further clarity, if you buy five £100 loan units they will be merged into a £500 loan unit. As loan units can be split arbitrarily there's no need to break them apart into small chunks any more. But I imagine that I can't run through my 60 odd loans just selling say £5 off the top of each to generate extra funds if needed? I.E. £20 minimum unit size still?
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Post by chris on Sept 12, 2014 14:11:39 GMT
To add further clarity, if you buy five £100 loan units they will be merged into a £500 loan unit. As loan units can be split arbitrarily there's no need to break them apart into small chunks any more. But I imagine that I can't run through my 60 odd loans just selling say £5 off the top of each to generate extra funds if needed? I.E. £20 minimum unit size still? Under discussion, but the implementation will work with loan units of any size. Maybe a £1 minimum but as I say that's under review.
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niceguy37
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Post by niceguy37 on Sept 12, 2014 14:37:19 GMT
But I imagine that I can't run through my 60 odd loans just selling say £5 off the top of each to generate extra funds if needed? I.E. £20 minimum unit size still? Under discussion, but the implementation will work with loan units of any size. Maybe a £1 minimum but as I say that's under review. If the loan parts are too small then there's the risk that the interest will work out at less than a penny, so I think a minimum size should be £10 or £20, (or balance of loan if lower). Also too many trivial loans just adds system volume without significant value.
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pikestaff
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Post by pikestaff on Sept 12, 2014 14:42:08 GMT
Forgot to add wonder how long the units in Eppy will last as that might go into default soon too. About £170k's worth available at the minute I've already got enough Eppy, sadly! Re your earlier comment that the 2% per month may not be for very long, my working assumption is that if they say 2 weeks it will be 8. I could be disappointed, but I won't mind so long as there are other acceptable options on the aftermarket. As things stand, autoinvest should re-lend the money almost immediately if I don't find anything more interesting.
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j
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Penguins are very misunderstood!
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Post by j on Sept 12, 2014 14:47:11 GMT
Under discussion, but the implementation will work with loan units of any size. Maybe a £1 minimum but as I say that's under review. If the loan parts are too small then there's the risk that the interest will work out at less than a penny, so I think a minimum size should be £10 or £20, (or balance of loan if lower). Also too many trivial loans just adds system volume without significant value. £20 is a nice, round & low enough figure which we're probably all happy to invest as a minimum. As you say, when rounding to nearest penny, anything less might cause a loss to any seller at some point
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Sept 12, 2014 14:49:13 GMT
Forgot to add wonder how long the units in Eppy will last as that might go into default soon too. About £170k's worth available at the minute .........my working assumption is that if they say 2 weeks it will be 8. Point taken 
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Post by chris on Sept 12, 2014 15:07:12 GMT
Under discussion, but the implementation will work with loan units of any size. Maybe a £1 minimum but as I say that's under review. If the loan parts are too small then there's the risk that the interest will work out at less than a penny, so I think a minimum size should be £10 or £20, (or balance of loan if lower). Also too many trivial loans just adds system volume without significant value. You've made an assumption there 
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mikes1531
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Post by mikes1531 on Sept 12, 2014 16:30:30 GMT
What is the state of the 'delay' interest on the Wood Green loan? It was set at 4% for four weeks starting 11/Aug, but that period ended a few days ago and nothing has been said since. Is the money I have tied up in my bids earning anything now? A general progress update seems overdue as well. Wood Green?? doesn't win any points for the above. I can hope he was joking but, in case he wasn't, here's an entry from the 'Your Accepted Bids' section of my account's Dashboard page... Wood Green Development Loan (Auction 118)
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mikes1531
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Post by mikes1531 on Sept 12, 2014 16:33:43 GMT
Im sure the loan extensions are already tradeable. Both H & I have had units traded post renewal. EDIT: Some H***** on AM currently If that's so, I'm happy to be corrected! Every time I've looked there haven't been any. 18% loans probably are going to be in high demand and snapped up by AutoInvest mandates before reaching the Aftermarket listing. If you want to pick up any of those units, I expect you have to do it via AI.
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star dust
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Post by star dust on Sept 12, 2014 16:39:23 GMT
Not necessarily, there'd been quite a lot of south manc for several days; although it was approaching D day, but then so is Eppy when I guess it too will turn into an 18 percenter.
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