sl75
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Post by sl75 on Feb 4, 2019 14:04:34 GMT
Unbelievably 110 West London Property Investment was processed overnight with a 50% discount !!
Oooh yes. I got a whole £1.0000000000000000000000000000000000032000 of it for 0.5000000000000000000000000000000000016000
Doubly (or triply?) bizarre, because there's not even any for sale at par, suggesting there was no need for the seller to offer any discount at all (unless it was a hacked account proving that the 2FA nonsense really didn't do anything to improve security!)
It strikes me that AC could really do with following standard order-book matching algorithms, so that a single "trading price" (discount level) is used for all trades at a given instance of processing the loan... if you offered a 50% discount, but there were already orders on the book to buy at par (or a lower discount), the "buying" price that was not fully exhausted by "sales" would be the one used.
Well-known standard order book matching algorithms exist for this, and it seems fully bizarre to me that AC chose to completely re-invent it with their current sub-standard solution.
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bg
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Post by bg on Feb 4, 2019 14:07:59 GMT
It's not a trivial task unfortunately. phantomjs? Nah just java which sends messages using pushover
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IFISAcava
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Post by IFISAcava on Feb 4, 2019 15:19:17 GMT
Would be very helpful to know how you set this up It's not a trivial task unfortunately. That's what I was afraid of
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bg
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Post by bg on Feb 4, 2019 15:38:19 GMT
It's not a trivial task unfortunately. That's what I was afraid of I along with a friend spent over 2 years building our own web app that pulls in data from many P2P sites and produces various reports, alerts and analysis along with having various tools. So among other things it pulls in all the transaction statements, checks all the balances (makes sure that your cash balances does add up to all the ins and outs), and produces very detailed reports on what is going on. So we can see profit split by accrued interest, interest received, bad debts, recoveries, trading p/l (buys/sells at discounts/premium) and incentives by day, month and year (with drill downs). It also splits out cash deposited, cash withdrawn, loans bought, loans sold etc etc on the same basis. What is cool is we can also see a global overview of all platforms added together. Does loads of other stuff like showing the depth of SM's (depending on the platform), graphs of loans stats on a global and individual loan basis (so on FS we can see graphs of the discount each individual loan is offered for sale at, snapped every 15 mins). The UI is much more user friendly and intuitive than any of the underlying platforms (in our view) - so for example I can do all sorts of filters on AC. For example, I just click a checkbox to see all discounted loans and can sort by max discount. We are constantly improving and updating it. We were thinking of producing some sort of program incorporating some of these features for others to use as it really makes portfolio management very simple but we could never think a way round the security issues it raises up.
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IFISAcava
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Post by IFISAcava on Feb 4, 2019 15:54:16 GMT
That's what I was afraid of I along with a friend spent over 2 years building our own web app that pulls in data from many P2P sites and produces various reports, alerts and analysis along with having various tools. So among other things it pulls in all the transaction statements, checks all the balances (makes sure that your cash balances does add up to all the ins and outs), and produces very detailed reports on what is going on. So we can see profit split by accrued interest, interest received, bad debts, recoveries, trading p/l (buys/sells at discounts/premium) and incentives by day, month and year (with drill downs). It also splits out cash deposited, cash withdrawn, loans bought, loans sold etc etc on the same basis. What is cool is we can also see a global overview of all platforms added together. Does loads of other stuff like showing the depth of SM's (depending on the platform), graphs of loans stats on a global and individual loan basis (so on FS we can see graphs of the discount each individual loan is offered for sale at, snapped every 15 mins). The UI is much more user friendly and intuitive than any of the underlying platforms (in our view) - so for example I can do all sorts of filters on AC. For example, I just click a checkbox to see all discounted loans and can sort by max discount. We are constantly improving and updating it. We were thinking of producing some sort of program incorporating some of these features for others to use as it really makes portfolio management very simple but we could never think a way round the security issues it raises up. Sounds amazing (and yes, not straightforward!)
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tonyr
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Post by tonyr on Feb 7, 2019 10:28:37 GMT
That's what I was afraid of I along with a friend spent over 2 years building our own web app that pulls in data from many P2P sites and produces various reports, alerts and analysis along with having various tools. So among other things it pulls in all the transaction statements, checks all the balances (makes sure that your cash balances does add up to all the ins and outs), and produces very detailed reports on what is going on. So we can see profit split by accrued interest, interest received, bad debts, recoveries, trading p/l (buys/sells at discounts/premium) and incentives by day, month and year (with drill downs). It also splits out cash deposited, cash withdrawn, loans bought, loans sold etc etc on the same basis. What is cool is we can also see a global overview of all platforms added together. Does loads of other stuff like showing the depth of SM's (depending on the platform), graphs of loans stats on a global and individual loan basis (so on FS we can see graphs of the discount each individual loan is offered for sale at, snapped every 15 mins). The UI is much more user friendly and intuitive than any of the underlying platforms (in our view) - so for example I can do all sorts of filters on AC. For example, I just click a checkbox to see all discounted loans and can sort by max discount. We are constantly improving and updating it. We were thinking of producing some sort of program incorporating some of these features for others to use as it really makes portfolio management very simple but we could never think a way round the security issues it raises up. Looks to me that you've got enough for a Seedrs fundraise there.
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bg
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Post by bg on Feb 9, 2019 10:23:38 GMT
| Loan # | Events | Last P | First L | Next P | Amount | LTV | Rate | Term | Available | Discounted | Best Rate | Drew | | 914 | | | | 24-Feb-19 | 1,133,000 | 47.2 | 5.5 | 36 of 36 | 520,615 | 96,059 | -1 | 24-Jan-19 | | 848 | | 25-Jan-19 | | 25-Feb-19 | 3,751,134 | 67 | 10 | 12 of 15 | 685,682 | 491,253 | -1 | 25-Oct-18 | | 833 | | 09-Jan-19 | | 09-Feb-19 | 811,558 | 68.5 | 8 | 9 of 12 | 243,050 | 6,013 | -1 | 9-Oct-18 | | 830 | | 01-Feb-19 | | 01-Mar-19 | 650,000 | 57 | 7.5 | 14 of 18 | 262,767 | 36,120 | -1 | 1-Oct-18 | | 832 | M | 28-Jan-19 | | 28-Feb-19 | 682,500 | 65 | 5.5 | 20 of 24 | 1,686 | 193 | -1 | 28-Sep-18 | | 831 | | 29-Jan-19 | | 01-Mar-19 | 881,349 | 63.1 | 7.5 | 15 of 19 | 477,685 | 104,316 | -1 | 28-Sep-18 | | 828 | | 26-Jan-19 | | 25-Feb-19 | 1,544,009 | 64 | 8 | 16 of 21 | 496,956 | 175,095 | -1 | 25-Sep-18 | | 816 | | 30-Jan-19 | | 02-Mar-19 | 2,917,668 | 59 | 9 | 10 of 15 | 468,028 | 56,249 | -1.5 | 31-Aug-18 | | 794 | M | 03-Feb-19 | | 03-Mar-19 | 110,000 | 50 | 6 | 54 of 60 | 4,350 | 386 | -1 | 3-Aug-18 | | 774 | | 12-Jan-19 | | 12-Feb-19 | 1,067,867 | 69 | 7 | 12 of 18 | 162,329 | 227 | -1 | 13-Jul-18 | | 766 | | 09-Jan-19 | | 09-Feb-19 | 255,000 | 70.8 | 7 | 54 of 60 | 132,800 | 55,793 | -1 | 9-Jul-18 | | 768 | | 09-Jan-19 | | 09-Feb-19 | 715,000 | 55 | 6.5 | 54 of 60 | 445,531 | 147,908 | -1 | 9-Jul-18 | | 758 | | 30-Jan-19 | | 02-Mar-19 | 2,765,492 | 68.6 | 8 | 8 of 15 | 649,840 | 67,120 | -1 | 29-Jun-18 | | 753 | | 26-Jan-19 | | 26-Feb-19 | 3,283,244 | 71.7 | 8 | 3 of 11 | 495,694 | 142,296 | -1 | 25-Jun-18 | | 677 | M | 27-Jan-19 | | 27-Feb-19 | 238,000 | 70 | 7 | 50 of 60 | 2,776 | 1 | -1 | 27-Mar-18 | | 673 | M | 23-Jan-19 | | 23-Feb-19 | 799,000 | 66.6 | 7.5 | 50 of 60 | 32,804 | 99 | -1 | 23-Mar-18 | | 606 | | 29-Jan-19 | | 28-Feb-19 | 182,000 | 69.3 | 6 | 48 of 60 | 57,573 | 201 | -1 | 29-Jan-18 | | 591 | M | 21-Jan-19 | | 21-Feb-19 | 600,000 | 60 | 7.5 | 11 of 24 | 21,412 | 1,212 | -1 | 21-Dec-17 | | 587 | M | 20-Jan-19 | | 20-Feb-19 | 370,000 | 69.8 | 7.5 | 17 of 30 | 19,912 | 553 | -1 | 20-Dec-17 | | 573 | M | 10-Jan-19 | | 10-Feb-19 | 225,000 | 52 | 7 | 46 of 60 | 18,420 | 1,490 | -1.5 | 10-Nov-17 | | 537 | ML | 15-Nov-18 | 15-Dec-18 | 15-Feb-19 | 480,000 | 65.2 | 7 | 46 of 60 | 19,133 | 48 | -1 | 15-Sep-17 | | 531 | ML | 21-Sep-18 | 22-Jan-19 | 22-Feb-19 | 857,000 | 70 | 8 | 47 of 60 | 81,697 | 10 | -1 | 22-Aug-17 | | 459 | M | 21-Jan-19 | | 21-Feb-19 | 750,000 | 41.7 | 8 | 3 of 24 | 15,903 | 44 | -1 | 21-Apr-17 | | 444 | M | 30-Jan-19 | | 28-Feb-19 | 455,000 | 68.7 | 7.5 | 38 of 60 | 18,910 | 1,478 | -1 | 30-Mar-17 | | 329 | ML | 22-Dec-18 | 22-Jan-19 | 22-Feb-19 | 220,000 | 65.7 | 7 | 33 of 60 | 11,736 | 250 | -1 | 22-Sep-16 | | 312 | M | 30-Jan-19 | | 02-Mar-19 | 7,411,968 | 63.2 | 8 | 3 of 33 | 72,482 | 3,925 | -1.5 | 29-Jul-16 | | 301 | M | 13-Jan-19 | | 13-Feb-19 | 300,000 | 61.9 | 6.5 | 6 of 36 | 36,036 | 2,022 | -1 | 13-Jul-16 |
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bg
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Post by bg on Feb 12, 2019 18:51:48 GMT
| Loan # | Events | Last P | First L | Next P | Amount | LTV | Rate | Term | Available | Discounted | Best Rate | Drew | | 930 | | | | | 228,750 | 75 | 5.5 | 60 of 60 | 161,645 | 22,694 | -1.5 | 12-Feb-19 | | 933 | | | | | 140,000 | 60.3 | 5.5 | 24 of 24 | 101,478 | 12 | -1 | 12-Feb-19 | | 934 | | | | | 750,000 | 56.8 | 5 | 60 of 60 | 515,627 | 60,363 | -2 | 12-Feb-19 | | 931 | | | | 11-Mar-19 | 1,800,000 | 58.3 | 7 | 60 of 60 | 928,771 | 311,745 | -1 | 11-Feb-19 | | 914 | | | | 24-Feb-19 | 1,133,000 | 47.2 | 5.5 | 36 of 36 | 519,760 | 102,855 | -1.5 | 24-Jan-19 | | 848 | | 25-Jan-19 | | 25-Feb-19 | 3,751,134 | 67 | 10 | 12 of 15 | 656,962 | 438,315 | -1 | 25-Oct-18 | | 830 | | 01-Feb-19 | | 01-Mar-19 | 650,000 | 57 | 7.5 | 14 of 18 | 261,636 | 28,220 | -1 | 1-Oct-18 | | 832 | M | 28-Jan-19 | | 28-Feb-19 | 682,500 | 65 | 5.5 | 20 of 24 | 1,693 | 536 | -1 | 28-Sep-18 | | 831 | | 29-Jan-19 | | 01-Mar-19 | 966,123 | 63.1 | 7.5 | 14 of 19 | 475,435 | 102,864 | -1 | 28-Sep-18 | | 828 | | 26-Jan-19 | | 26-Feb-19 | 1,544,009 | 64 | 8 | 16 of 21 | 480,475 | 146,900 | -1 | 25-Sep-18 | | 821 | M | 07-Feb-19 | | 07-Mar-19 | 200,000 | 47.1 | 6 | 55 of 60 | 1,088 | 66 | -1 | 7-Sep-18 | | 816 | | 30-Jan-19 | | 02-Mar-19 | 2,917,668 | 59 | 9 | 10 of 15 | 457,504 | 40,394 | -1 | 31-Aug-18 | | 794 | M | 03-Feb-19 | | 03-Mar-19 | 110,000 | 50 | 6 | 54 of 60 | 4,485 | 386 | -1 | 3-Aug-18 | | 791 | | 30-Jan-19 | | 01-Mar-19 | 1,485,351 | 65.4 | 8.5 | 12 of 18 | 322,167 | 806 | -1 | 31-Jul-18 | | 774 | | 12-Jan-19 | | 12-Feb-19 | 1,067,867 | 69 | 7 | 11 of 18 | 161,780 | 495 | -1 | 13-Jul-18 | | 766 | | 09-Jan-19 | | 09-Mar-19 | 255,000 | 70.8 | 7 | 53 of 60 | 132,974 | 56,019 | -1 | 9-Jul-18 | | 768 | | 09-Feb-19 | | 09-Mar-19 | 715,000 | 55 | 6.5 | 53 of 60 | 425,728 | 141,610 | -1 | 9-Jul-18 | | 758 | | 30-Jan-19 | | 02-Mar-19 | 3,007,449 | 68.6 | 8 | 8 of 16 | 616,154 | 47,822 | -1 | 29-Jun-18 | | 753 | | 26-Jan-19 | | 26-Feb-19 | 3,283,244 | 71.7 | 8 | 3 of 11 | 493,335 | 144,332 | -1 | 25-Jun-18 | | 677 | M | 27-Jan-19 | | 27-Feb-19 | 238,000 | 70 | 7 | 50 of 60 | 2,792 | 1 | -1 | 27-Mar-18 | | 621 | | 23-Jan-19 | | 23-Feb-19 | 500,000 | 58.1 | 5 | 49 of 60 | 83,895 | 200 | -1 | 23-Feb-18 | | 606 | | 29-Jan-19 | | 28-Feb-19 | 182,000 | 69.3 | 6 | 48 of 60 | 57,763 | 200 | -1 | 29-Jan-18 | | 591 | M | 21-Jan-19 | | 21-Feb-19 | 600,000 | 60 | 7.5 | 11 of 24 | 21,703 | 1,161 | -1 | 21-Dec-17 | | 587 | M | 20-Jan-19 | | 20-Feb-19 | 370,000 | 69.8 | 7.5 | 17 of 30 | 20,282 | 553 | -1 | 20-Dec-17 | | 573 | M | 10-Jan-19 | | 10-Mar-19 | 225,000 | 52 | 7 | 45 of 60 | 18,496 | 1,382 | -1 | 10-Nov-17 | | 537 | ML | 15-Nov-18 | 15-Dec-18 | 15-Feb-19 | 480,000 | 65.2 | 7 | 44 of 60 | 19,114 | 48 | -1 | 15-Sep-17 | | 444 | M | 30-Jan-19 | | 28-Feb-19 | 455,000 | 68.7 | 7.5 | 38 of 60 | 19,273 | 1,478 | -1 | 30-Mar-17 | | 329 | ML | 22-Dec-18 | 22-Jan-19 | 22-Feb-19 | 220,000 | 65.7 | 7 | 33 of 60 | 12,478 | 250 | -1 | 22-Sep-16 | | 312 | M | 30-Jan-19 | | 02-Mar-19 | 7,411,968 | 63.2 | 8 | 3 of 33 | 72,915 | 3,865 | -1.5 | 29-Jul-16 | | 301 | M | 13-Jan-19 | | 13-Feb-19 | 300,000 | 61.9 | 6.5 | 6 of 36 | 36,485 | 2,022 | -1 | 13-Jul-16 |
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bg
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Post by bg on Feb 15, 2019 8:02:08 GMT
| Loan # | Events | Last P | First L | Next P | Amount | LTV | Rate | Term | Available | Discounted | Best Rate | Drew | | 936 | | | | | 111,500 | 64.1 | 6.5 | 18 of 18 | 52,208 | 6,583 | -1 | 14-Feb-19 | | 932 | | | | 13-Mar-19 | 430,000 | 64.7 | 5 | 60 of 60 | 255,465 | 39,520 | -2.5 | 13-Feb-19 | | 930 | | | | 12-Mar-19 | 228,750 | 75 | 5.5 | 60 of 60 | 166,281 | 17,899 | -1.5 | 12-Feb-19 | | 934 | | | | 12-Mar-19 | 750,000 | 56.8 | 5 | 60 of 60 | 562,011 | 110,946 | -2 | 12-Feb-19 | | 931 | | | | 11-Mar-19 | 1,800,000 | 58.3 | 7 | 60 of 60 | 878,547 | 287,926 | -1 | 11-Feb-19 | | 914 | | | | 24-Feb-19 | 1,133,000 | 47.2 | 5.5 | 36 of 36 | 519,963 | 97,677 | -1.5 | 24-Jan-19 | | 900 | | 20-Jan-19 | | 20-Feb-19 | 1,150,000 | 50 | 5.5 | 59 of 60 | 424,559 | 22,234 | -1 | 20-Dec-18 | | 848 | | 25-Jan-19 | | 25-Feb-19 | 3,751,134 | 67 | 10 | 12 of 15 | 665,009 | 430,166 | -1.5 | 25-Oct-18 | | 833 | | 09-Feb-19 | | 12-Mar-19 | 811,558 | 68.5 | 8 | 8 of 12 | 238,695 | 248 | -1 | 9-Oct-18 | | 830 | | 01-Feb-19 | | 01-Mar-19 | 650,000 | 57 | 7.5 | 14 of 18 | 257,594 | 23,942 | -1 | 1-Oct-18 | | 832 | M | 28-Jan-19 | | 28-Feb-19 | 682,500 | 65 | 5.5 | 20 of 24 | 1,618 | 460 | -1 | 28-Sep-18 | | 831 | | 29-Jan-19 | | 01-Mar-19 | 966,123 | 63.1 | 7.5 | 14 of 19 | 475,288 | 98,956 | -1 | 28-Sep-18 | | 828 | | 26-Jan-19 | | 26-Feb-19 | 1,544,009 | 64 | 8 | 16 of 21 | 494,889 | 168,430 | -1 | 25-Sep-18 | | 816 | | 30-Jan-19 | | 02-Mar-19 | 2,917,668 | 59 | 9 | 10 of 15 | 452,439 | 36,723 | -1 | 31-Aug-18 | | 805 | M | 24-Jan-19 | | 24-Feb-19 | 825,000 | 55 | 7 | 55 of 60 | 4,231 | 30 | -1 | 24-Aug-18 | | 791 | | 30-Jan-19 | | 02-Mar-19 | 1,554,846 | 65.4 | 8.5 | 12 of 18 | 324,769 | 16 | -1 | 31-Jul-18 | | 774 | | 12-Feb-19 | | 15-Mar-19 | 1,067,867 | 69 | 7 | 11 of 18 | 161,941 | 490 | -1 | 13-Jul-18 | | 766 | | 09-Feb-19 | | 09-Mar-19 | 255,000 | 70.8 | 7 | 53 of 60 | 132,620 | 56,012 | -1 | 9-Jul-18 | | 768 | | 09-Feb-19 | | 09-Mar-19 | 715,000 | 55 | 6.5 | 53 of 60 | 445,984 | 124,633 | -1 | 9-Jul-18 | | 758 | | 30-Jan-19 | | 02-Mar-19 | 3,007,449 | 68.6 | 8 | 8 of 16 | 633,180 | 52,680 | -1 | 29-Jun-18 | | 753 | | 26-Jan-19 | | 26-Feb-19 | 3,283,244 | 71.7 | 8 | 3 of 11 | 491,963 | 141,150 | -1 | 25-Jun-18 | | 677 | M | 27-Jan-19 | | 27-Feb-19 | 238,000 | 70 | 7 | 50 of 60 | 2,792 | 100 | -1 | 27-Mar-18 | | 621 | | 23-Jan-19 | | 23-Feb-19 | 500,000 | 58.1 | 5 | 49 of 60 | 84,211 | 400 | -1 | 23-Feb-18 | | 606 | | 29-Jan-19 | | 28-Feb-19 | 182,000 | 69.3 | 6 | 48 of 60 | 57,806 | 237 | -1 | 29-Jan-18 | | 587 | M | 20-Jan-19 | | 20-Feb-19 | 370,000 | 69.8 | 7.5 | 17 of 30 | 22,042 | 546 | -1.5 | 20-Dec-17 | | 573 | M | 10-Feb-19 | | 10-Mar-19 | 225,000 | 52 | 7 | 45 of 60 | 20,322 | 1,382 | -1 | 10-Nov-17 | | 537 | ML | 15-Dec-18 | 15-Jan-19 | 15-Feb-19 | 480,000 | 65.2 | 7 | 44 of 60 | 19,128 | 48 | -1 | 15-Sep-17 | | 329 | M | 22-Jan-19 | | 22-Feb-19 | 220,000 | 65.7 | 7 | 32 of 60 | 13,387 | 250 | -1 | 22-Sep-16 | | 312 | M | 30-Jan-19 | | 02-Mar-19 | 7,411,968 | 63.2 | 8 | 3 of 33 | 76,954 | 3,904 | -2.5 | 29-Jul-16 | | 301 | M | 13-Jan-19 | | 13-Mar-19 | 300,000 | 61.9 | 6.5 | 6 of 36 | 37,537 | 1,683 | -1 | 13-Jul-16 |
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Post by danielbird193 on Feb 15, 2019 11:31:08 GMT
The discounts on offer for some of these recent 5% or 5.5% loans seem to show they're really struggling to get these away at such low rates. I wonder how much longer it can go on for?!
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rscal
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Post by rscal on Feb 15, 2019 14:09:40 GMT
#932 breaks down with only some at the 'headline' rate of discount: | Amount | Discount | | £3,076.91 | -2.5% discount | | £35,360.32 | -2.0% discount | | £5,120.00 | -1.5% discount | | £20,151.51 | -1.0% discount | | £215,944.96 | 0.0% discount |
(I guess the 2% band isn't being touched yet?)
Further edit: Wow that was quick: within 20 minutes there has been a round. It now stands at
EDITED In:
I suppose the 'point' of the exercise of buying at discount right at the outset it allows you to dump it straight back b4 the par original balances are bought out? (<8 hours?)
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| change |
| | -2.5% discount | £833.55 | £1,774.52 | £2,608.07 | -£869.61 | £1,738.46 | £3,076.92 | £4,815.38 | £9,456.37 | £14,271.75 | | -2.0% discount | £22,858.29 | -£5,574.97 | £17,283.32 | £5.31 | £17,288.63 | -£6,117.34 | £11,171.29 | -£10,487.77 | £683.52 | | -1.5% discount | £4,704.48 | £415.52 | £5,120.00 | -£5.08 | £5,114.92 | £5.08 | £5,120.00
| £5,000.00 | £10,120.00 | | -1.0% discount | £19,738.09 | £10,261.91 | £30,000.00 | £0.00 | £30,000.00 | £0.00 | £30,000.00 | £50.50 | £30,050.50 | | 0.0% discount | £215,077.63 | £1,145.74 | £216,223.37 | £256.41 | £216,479.78 | £5.00 | £216,484.78 | -£9,679.53 | £206,805.25 |
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| Totals
| £263,212.04 | £8,022.72 | £271,234.76 | -£612.97 | £270,621.79 | -£3,030.34 | £267,591.45 | -£5,660.43 | £261,931.02 |
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Post by Ace on Feb 15, 2019 14:15:44 GMT
Are 5% loans purchased by any of the packaged accounts other than the QAA?
Given that all of the other accounts target higher returns than 5%, I would presume not. So underwriters would have to offer substantial discounts to persuade MLA investors to purchase them.
I can't tell from my own holdings as I'm only active in the QAA and MLA.
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Steerpike
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Post by Steerpike on Feb 15, 2019 14:22:15 GMT
The discounts on offer for some of these recent 5% or 5.5% loans seem to show they're really struggling to get these away at such low rates. I wonder how much longer it can go on for?! Even with a 2.5% sweetener up front, 5% over 5 years is not very attractive, particularly given that it seems unlikely that these loans will sell at par at any point throughout the term. Perhaps, we can expect that new lower rates are coming this year to PSA, GBBA, and 30DAA so that there will be a home for these loans.
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rscal
Posts: 985
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Post by rscal on Feb 15, 2019 14:28:09 GMT
Are 5% loans purchased by any of the packaged accounts other than the QAA? Given that all of the other accounts target higher returns than 5%, I would presume not. So underwriters would have to offer substantial discounts to persuade MLA investors to purchase them. I can't tell from my own holdings as I'm only active in the QAA and MLA. I had assumed something similar when a 4.5% loan came up a while back, but there is no reason the funds wouln't mix 'n' match across all rates as long as there is a healthy average margin there.
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bg
Member of DD Central
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Post by bg on Feb 15, 2019 14:42:21 GMT
The discounts on offer for some of these recent 5% or 5.5% loans seem to show they're really struggling to get these away at such low rates. I wonder how much longer it can go on for?! Even with a 2.5% sweetener up front, 5% over 5 years is not very attractive, particularly given that it seems unlikely that these loans will sell at par at any point throughout the term. Perhaps, we can expect that new lower rates are coming this year to PSA, GBBA, and 30DAA so that there will be a home for these loans. Yes but if you buy at 2.5% and then sell with a 1% discount in a month (say) then it's an excellent return. The 1.5% pick up is income tax free and annualised gives an excellent rate.
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