star dust
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Post by star dust on Nov 3, 2018 15:06:03 GMT
I've noticed that as well as diminishing in magnitude there are far fewer new loans offering discounts recently. I assume the reason is UWs are not being used so much as these are 'relatively' smaller loans, or the UWs are not feeling the need to offload as much at present, or maybe a combination, but I wonder if this is a reflection of ACs (presumably) successful attraction of funds due to their recent cash-back promotion.
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bg
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Post by bg on Nov 3, 2018 15:15:04 GMT
I've noticed that as well as diminishing in magnitude there are far fewer new loans offering discounts recently. I assume the reason is UWs are not being used so much as these are 'relatively' smaller loans, or the UWs are not feeling the need to offload as much at present, or maybe a combination, but I wonder if this is a reflection of ACs (presumably) successful attraction of funds due to their recent cash-back promotion. It's a combination of the surge of funds onto the platform and u/w fees being cut sub 1%.
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Post by hammertime on Nov 5, 2018 16:54:34 GMT
Why cant we sell loans at a profit like you can at F/C.
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jo
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dead
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Post by jo on Nov 5, 2018 16:58:52 GMT
Why cant we sell loans at a profit like you can at F/C. Because we might not know what we're voting for. Oh no, hang on, wrong forum.
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Post by barneywol on Nov 5, 2018 17:50:51 GMT
Why cant we sell loans at a profit like you can at F/C. Don't be greedy!
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Post by df on Nov 5, 2018 18:02:40 GMT
Why cant we sell loans at a profit like you can at F/C. There is no discount/premium trading on FC since 18 Sept 2017.
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bg
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Post by bg on Nov 8, 2018 10:57:17 GMT
| Loan # | Amount | LTV | Rate | Term | Available | Discounted | Best Rate | Drew | | 833 | 757,307 | 68.5 | 8 | 12 of 12 | 415,123 | 80,269 | -1.5 | 9-Oct-18 | | 830 | 650,000 | 57 | 7.5 | 17 of 18 | 271,547 | 5,933 | -1 | 1-Oct-18 | | 791 | 1,299,591 | 65.4 | 8.5 | 15 of 18 | 534,576 | 4 | -2 | 31-Jul-18 | | 774 | 892,583 | 69 | 7 | 15 of 18 | 316,814 | 220,123 | -1 | 13-Jul-18 | | 766 | 255,000 | 70.8 | 7 | 57 of 60 | 147,795 | 78,146 | -1 | 9-Jul-18 | | 768 | 715,000 | 55 | 6.5 | 57 of 60 | 525,968 | 182,048 | -1 | 9-Jul-18 | | 612 | 821,039 | 70 | 8 | 3 of 12 | 180,512 | 65 | -2 | 31-Jan-18 | | 602 | 1,950,000 | 60.9 | 7 | 51 of 60 | 58,702 | 3 | -1 | 31-Jan-18 | | 605 | 1,780,000 | 57.4 | 7.5 | 51 of 60 | 57,006 | 99 | -2 | 26-Jan-18 | | 531 | 857,000 | 70 | 8 | 47 of 60 | 40,724 | 149 | -1 | 22-Aug-17 | | 384 | 1,600,000 | 64.3 | 7.5 | 38 of 61 | 39,811 | 38 | -2 | 9-Dec-16 | | 354 | 78,000 | 59.5 | 7.5 | 36 of 60 | 4,001 | 96 | -2 | 1-Nov-16 |
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rscal
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Post by rscal on Nov 9, 2018 14:45:19 GMT
(Giving totals could be misleading)
Oops bg . I didn't pay enough attention to the figures, you ARE looking in detail and correctly stating the amount within the lowest band!
When You click on a loan to bring up the information about it and click on (as opposed to hovering over) the link displaying the "Available for investment" total, a box displays exactly how much is available at each level (from 'par' to the maximum.) I've now discovered that very little was actually 'on offer' in the -1% or -2% and a great deal of the total was 'at par'. but this could be due to timing as the discounted amounts would surely be 'swept' out first. A fraction of a penny might be the residual amount only
Eg
#833 O** Developments Limited:Amount Discount
£ 70,305.55 -1.5% discount
£ 5,583.03 -1.0% discount
£333,335.36 0.0% discount
#830 J***** & H***** H***** - Warehouse *:
Amount Discount
< £0.01 -1.0% discount
£253,171.35 0.0% discount
#774 S*** - P*******:
Amount Discount
£220,121.25 -1.0% discount
£ 97,016.81 0.0% discount
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trium
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Post by trium on Nov 9, 2018 15:05:55 GMT
At the time the table was generated there was nearly 6k available at discount in #830. Note that the total available has gone down by 18k between bg 's snapshot and yours. Naturally the 6k would have gone first. The residual fraction of a penny is neither here nor there - bg 's table was correct at the time and I don't think it misleads at all. Edit - caught out by your edit!  |
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bg
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Post by bg on Nov 9, 2018 15:26:57 GMT
Given the debate going on on the MT board about discounting I wonder what people make of the 'ethics' of what I have been considering doing.
833 has £75k is for sale at 1.5% discount (down from around £100k) and not much for sale at a 1% discount.
Once that gets down to 40-50k I'm tempted to buy it and attempt to sell it at a 1% discount. A turn that would make me £200-250 + the interest I accrue.
Many (on the MT board) seem to deem that unethical as I am seeking to profit at the expense of another investor. I couldn't disagree more. I would wager that the person selling doesn't give two hoots if the buyer sits on it or decides to resell (it's not like being annoyed because the person I sold the house I grew up in decided to demolish it). I would be doing them a favour by giving them their money back (the goal of selling) and at the same time I am taking on the risk of the loan for the period I hold the loan....and of course, I run the risk of not being able to shift it at all.
All in all exactly how markets/capitalism should work.
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cb25
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Post by cb25 on Nov 9, 2018 15:30:12 GMT
Once that gets down to 40-50k I'm tempted to buy it and attempt to sell it at a 1% discount. A turn that would make me £200-250 + the interest I accrue. Many .. seem to deem that unethical as I am seeking to profit at the expense of another investor. Imo if you're willing to risk getting stuck with £40-50K of a loan, good luck to you
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trium
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Post by trium on Nov 9, 2018 16:19:36 GMT
Given the debate going on on the MT board about discounting I wonder what people make of the 'ethics' of what I have been considering doing. 833 has £75k is for sale at 1.5% discount (down from around £100k) and not much for sale at a 1% discount. Once that gets down to 40-50k I'm tempted to buy it and attempt to sell it at a 1% discount. A turn that would make me £200-250 + the interest I accrue. Many (on the MT board) seem to deem that unethical as I am seeking to profit at the expense of another investor. I couldn't disagree more. I would wager that the person selling doesn't give two hoots if the buyer sits on it or decides to resell (it's not like being annoyed because the person I sold the house I grew up in decided to demolish it). I would be doing them a favour by giving them their money back (the goal of selling) and at the same time I am taking on the risk of the loan for the period I hold the loan....and of course, I run the risk of not being able to shift it at all. All in all exactly how markets/capitalism should work. While I intend to retain a position (8% on this ain't bad) I have bought far more than my usual quota with the intention of selling the surplus shortly and turning a profit. I feel perfectly comfortable with this. With this volume I'd assume the seller is an underwriter who wants out. I'm doing him a favour and I'm providing some ongoing liquidity once he's gone. Why would anyone care who buys the parts and what they do with them? By the way, bg, without your excellent tables I would not have even seen the opportunity so I am extremely grateful.
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number5
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Post by number5 on Nov 9, 2018 16:45:25 GMT
Given the debate going on on the MT board about discounting I wonder what people make of the 'ethics' of what I have been considering doing. 833 has £75k is for sale at 1.5% discount (down from around £100k) and not much for sale at a 1% discount. Once that gets down to 40-50k I'm tempted to buy it and attempt to sell it at a 1% discount. A turn that would make me £200-250 + the interest I accrue. Many (on the MT board) seem to deem that unethical as I am seeking to profit at the expense of another investor. I couldn't disagree more. I would wager that the person selling doesn't give two hoots if the buyer sits on it or decides to resell (it's not like being annoyed because the person I sold the house I grew up in decided to demolish it). I would be doing them a favour by giving them their money back (the goal of selling) and at the same time I am taking on the risk of the loan for the period I hold the loan....and of course, I run the risk of not being able to shift it at all. All in all exactly how markets/capitalism should work. I am new to AC and looking to invest, I was wondering if there was an easy way filtering loans that have a discount available for sale? I would not have noticed 833, until you mentioned it and I clicked into the loan Also is there a view where you can see the effective % return after the discount has been applied?
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bigfoot12
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Post by bigfoot12 on Nov 9, 2018 17:21:35 GMT
...what people make of the 'ethics' of ... £75k is for sale at 1.5% discount ...once that gets down to 40-50k I'm tempted to buy it and attempt to sell it at a 1% discount. All in all exactly how markets/capitalism should work. As you describe ethics seem fine to me, and in any case the offer at 1.5% discount is most likely an underwriter delighted to sell to you. The seller is freely offering at that price in an attempt to sell quickly. Obviously if it is you offering at a 1.5% discount and then posting in a forum that you might buy it that would be different.
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bigfoot12
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Post by bigfoot12 on Nov 9, 2018 17:25:00 GMT
I am new to AC and looking to invest, I was wondering if there was an easy way filtering loans that have a discount available for sale? I would not have noticed 833, until you mentioned it and I clicked into the loan Also is there a view where you can see the effective % return after the discount has been applied? No and no. The first is said to be in the pipeline, but it seems to have been stuck there for a while. The second is reasonably easy to work out on a spreadsheet.
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