bg
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Post by bg on Sept 26, 2018 11:03:47 GMT
I don't think it is easy to see what loans are currently available for sale at a discount so for those that are interested, here they are:-
Loan # Available Discounted Best Discount
828 978,953 206,507 -1
824 433,470 42,787 -1
822 286,118 39,976 -1
820 511,657 20,212 -1
792 50,287 20,122 -1
775 148,815 8,149 -1
776 103,411 37,434 -1
774 328,280 198,505 -1
765 274,070 635 -1.5
766 133,950 68,550 -1.5
768 566,242 47,868 -1
756 195,243 71,764 -1
730 579,030 23,379 -1
626 152,190 25 -1
620 2,123 126 -1
602 16,150 187 -1
The total amount discounted has actually reduced by £300k since midnight (and by £1million since 21st) so there is obviously some heavy buying going on.
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alibaba
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Post by alibaba on Sept 26, 2018 11:12:07 GMT
Very useful thanks for the input
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Post by dan1 on Sept 26, 2018 11:18:59 GMT
Thanks bgAnyone else find it bizarre that AC can't provide this information in the same way without having to click on each loan? |
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victors
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Post by victors on Sept 26, 2018 11:24:34 GMT
It's ridiculous. Why can't they have an option within the browse load filters?
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bg
Member of DD Central
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Post by bg on Sept 26, 2018 11:51:53 GMT
It's on the infamous to do list apparently.
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IFISAcava
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Post by IFISAcava on Sept 26, 2018 11:59:01 GMT
I don't think it is easy to see what loans are currently available for sale at a discount so for those that are interested, here they are:- Very helpful, thanks. Have tried to pick up a little (more) of each. Would indeed be helpful to have this searchable readily.
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ceejay
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Post by ceejay on Sept 26, 2018 14:02:24 GMT
I note that most of the new loans I've picked up a piece of recently have come with a discount. I guess that underwriters are being given some margin which they're passing on so they can recycle their cash.
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dead-money
Rocket to the Moon
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Post by dead-money on Sept 28, 2018 9:11:25 GMT
Does anyone know,
With these new loans being issued at a discount how much of a boost to the interest rate is it ?
e.g.
#828 8% over 20 months, if you have £1,011 nominal at a cost of £1,000
Is this a 0.5% interest bonus on the yield to maturity?
TIA
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amphoria
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Post by amphoria on Sept 28, 2018 16:52:40 GMT
Does anyone know, With these new loans being issued at a discount how much of a boost to the interest rate is it ? e.g. #828 8% over 20 months, if you have £1,011 nominal at a cost of £1,000 Is this a 0.5% interest bonus on the yield to maturity? TIA It's a discount on the cost of the loan rather than an increase in interest paid. So if you were to by £1000 nominal with a discount of 1% it would cost you £990. The interest at 8% would still be £80 per year, but because you had only paid £990, the effective interest rate is 80/990*100 = 8.081%.
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Post by df on Sept 28, 2018 17:19:42 GMT
Thanks bg Anyone else find it bizarre that AC can't provide this information in the same way without having to click on each loan? It would've been better if they did, but existing system is not too bad. You don't need to click, just hover over "units available" and it tells you if discounts are available.
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Post by dan1 on Sept 28, 2018 17:20:46 GMT
Thanks bg Anyone else find it bizarre that AC can't provide this information in the same way without having to click on each loan? It would've been better if they did, but existing system is not too bad. You don't need to click, just hover over "units available" and it tells you if discounts are available. .... but often only to find <0.01 available at a discount 
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ceejay
Posts: 975
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Post by ceejay on Sept 28, 2018 18:41:02 GMT
Does anyone know, With these new loans being issued at a discount how much of a boost to the interest rate is it ? e.g. #828 8% over 20 months, if you have £1,011 nominal at a cost of £1,000 Is this a 0.5% interest bonus on the yield to maturity? TIA It's a discount on the cost of the loan rather than an increase in interest paid. So if you were to by £1000 nominal with a discount of 1% it would cost you £990. The interest at 8% would still be £80 per year, but because you had only paid £990, the effective interest rate is 80/990*100 = 8.081%.
I think you have overlooked the fact that, as well as the interest payments, you will also receive repayment of £1000 capital for which you only paid £990, ie a £10 bonus. This means that if you keep the loan for a year before it repays, or you cash in at par, your effective rate is about 9%. This will vary for longer or shorter loan periods.
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amphoria
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Post by amphoria on Sept 28, 2018 20:09:53 GMT
It's a discount on the cost of the loan rather than an increase in interest paid. So if you were to by £1000 nominal with a discount of 1% it would cost you £990. The interest at 8% would still be £80 per year, but because you had only paid £990, the effective interest rate is 80/990*100 = 8.081%.
I think you have overlooked the fact that, as well as the interest payments, you will also receive repayment of £1000 capital for which you only paid £990, ie a £10 bonus. This means that if you keep the loan for a year before it repays, or you cash in at par, your effective rate is about 9%. This will vary for longer or shorter loan periods.
You are quite correct, although it makes the calculation somewhat more difficult as it now depends on the lifetime of the loan and whether the loan is amortising or interest only. Assuming a loan of exactly one year where the amortising element doesn't make any difference, this would give 90/990*100 = 9.091%.
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Post by df on Sept 28, 2018 21:15:42 GMT
I think you have overlooked the fact that, as well as the interest payments, you will also receive repayment of £1000 capital for which you only paid £990, ie a £10 bonus. This means that if you keep the loan for a year before it repays, or you cash in at par, your effective rate is about 9%. This will vary for longer or shorter loan periods.
You are quite correct, although it makes the calculation somewhat more difficult as it now depends on the lifetime of the loan and whether the loan is amortising or interest only. Assuming a loan of exactly one year where the amortising element doesn't make any difference, this would give 90/990*100 = 9.091%. In any case, you gain from discount if the loan is successful. If failed, the figure can be very different. I quite like these unexpected extras. I prefund upcoming loans at par and get 1% on the top of my investment.
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bg
Member of DD Central
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Post by bg on Sept 28, 2018 21:47:23 GMT
You are quite correct, although it makes the calculation somewhat more difficult as it now depends on the lifetime of the loan and whether the loan is amortising or interest only. Assuming a loan of exactly one year where the amortising element doesn't make any difference, this would give 90/990*100 = 9.091%. In any case, you gain from discount if the loan is successful. If failed, the figure can be very different. I quite like these unexpected extras. I prefund upcoming loans at par and get 1% on the top of my investment. You can also pick up loans at a discount and then resell at par. May take a few weeks but you get interest all along and a high XIRR.
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