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Post by df on Nov 28, 2018 15:36:36 GMT
At last!
Loan amounts: £17,500
Asset Values: £35,000
Max LTV: 50%
Interest rate: 12%
Max. Bid per 24 hours: £25
Bid Restriction Duration: 48 hrs
The loans are secured by a charge over a rolling group of assets held by the borrower. The group of assets will be managed to maintain a loan-to-value ratio of 50%.
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elliotn
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Post by elliotn on Nov 28, 2018 15:43:41 GMT
When MrCL pointed out 3M net liabilities for AE there has been a Q ever since, worth looking at this company before getting too excited  . |
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Post by stevel on Nov 28, 2018 16:03:36 GMT
I just spotted that as well. I did notice it seems to be loans from the parent company with no fixed terms for repayment. I don't know if that should make me feel any better about them though, what do you think Elliot?
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archie
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Post by archie on Nov 28, 2018 16:08:50 GMT
Two of the existing loans end on 01/12/18.
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elliotn
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Post by elliotn on Nov 28, 2018 16:24:05 GMT
I just spotted that as well. I did notice it seems to be loans from the parent company with no fixed terms for repayment. I don't know if that should make me feel any better about them though, what do you think Elliot? To me it looks like CS have racked up millions in losses and cannot afford to pay the loan back. The CS loan props up its parent MB Ltd which has 0.2M assets after a retained loss of c150k last year. However, MB just looks like a conduit for the UBO in Canada, how long they can continue to fund these losses I don’t know. But I do know I won’t be funding them .
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corto
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one-syllabistic
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Post by corto on Nov 28, 2018 16:28:55 GMT
Why do they all have the same interest? The later ones get increasingly more risky.
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cedarcourtcapital
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Listening is not the same as understanding
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Post by cedarcourtcapital on Nov 28, 2018 17:18:57 GMT
It is really one loan, split as it is so it is a repayment loam, rather than an interest only with bullet repayment.
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corto
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one-syllabistic
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Post by corto on Nov 28, 2018 17:40:54 GMT
It is really one loan, split as it is so it is a repayment loam, rather than an interest only with bullet repayment. It says in the description " .. agreement with the borrower is an interest only agreement, where interest is paid monthly and capital is paid at the term. " "Each of those smaller loans has a term of between 6 months and 4 years ... ... each of the smaller loans will be redeemed at term." That reads like the 6-term loan gets repaid (capital and interest) after 6 months. What if the loan fails afterwards?
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picnicman
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Post by picnicman on Nov 28, 2018 17:49:44 GMT
I just spotted that as well. I did notice it seems to be loans from the parent company with no fixed terms for repayment. I don't know if that should make me feel any better about them though, what do you think Elliot? To me it looks like CS have racked up millions in losses and cannot afford to pay the loan back. The CS loan props up its parent MB Ltd which has 0.2M assets after a retained loss of c150k last year. However, MB just looks like a conduit for the UBO in Canada, how long they can continue to fund these losses I don’t know. But I do know I won’t be funding them . - yes the numbers at CH do not look too grand, depends on if you feel the underlying loan pawn agreements will realise the funds if it ever came to it - are you not even going to have a little snippet? - there were a fair few existing loan sales this afternoon, although miniscule in terms of the overall loan and as archie points out, two are due for repayment on 1/12. Any further thoughts? Cheers P
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liso
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Post by liso on Nov 28, 2018 19:05:19 GMT
It is really one loan, split as it is so it is a repayment loam, rather than an interest only with bullet repayment. It says in the description " .. agreement with the borrower is an interest only agreement, where interest is paid monthly and capital is paid at the term. " "Each of those smaller loans has a term of between 6 months and 4 years ... ... each of the smaller loans will be redeemed at term." That reads like the 6-term loan gets repaid (capital and interest) after 6 months. What if the loan fails afterwards? It is similar(ish) to a 4-year amortising loan, the difference being that the capital is repaid every 6 months rather than every month. If the loan fails, the potential losses should be less than with an interest only loan. It could be argued that the interest rate should decrease over time, as the capital is reduced and therefore the size of the potential loss is reduced. I'm not advocating for that!
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Post by GSV3MIaC on Nov 28, 2018 20:01:05 GMT
Ah, but is the security decreasing over time too?
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elliotn
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Post by elliotn on Nov 29, 2018 3:04:13 GMT
Ah, but is the security decreasing over time too? May depend on gold price or consumer sentiment facing uncertainty. This will be a rolling stock facility with sales in/out to maintain 50% ltv so anticipated to be fairly up to date with stock audits. That said, who's doing the valuations? Assuming it's the borrower, I note Collateral's borrowers weren't too keen on taking their bling back even at 50%.
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elliotn
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Post by elliotn on Nov 29, 2018 3:31:05 GMT
To me it looks like CS have racked up millions in losses and cannot afford to pay the loan back. The CS loan props up its parent MB Ltd which has 0.2M assets after a retained loss of c150k last year. However, MB just looks like a conduit for the UBO in Canada, how long they can continue to fund these losses I don’t know. But I do know I won’t be funding them . - yes the numbers at CH do not look too grand, depends on if you feel the underlying loan pawn agreements will realise the funds if it ever came to it - are you not even going to have a little snippet? - there were a fair few existing loan sales this afternoon, although miniscule in terms of the overall loan and as archie points out, two are due for repayment on 1/12. Any further thoughts? Cheers P Very fair points, this is an asset backed loan not a cash flow lend. This borrower has made repayments on all its high cost borrowings. As SME loan this is a gamble on an unknown Canadian parent maintaining their magnificent munificence. For security, there are specific, potential issues with highly portable assets in the last desperate throes of staving off default. Will they all be cleanly accounted for per the last platform visit (I remember some cars going missing on a Collateral loan)? I lend on a worst case scenario (and racking up 3M in losses for me puts this borrower in that category) and don't go out of my way to test the validity of security valuations (happy to be out of Wandsworth and who's doing these pawn valuations, the borrower?). I have feasted on 5 figs of bling in default on Collateral and that's enough nibbles for now  (That said, I'm upping nibbles of auction valued pawn secured in storage by Unb so I'm still getting the diversification I want .)
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Post by GSV3MIaC on Nov 29, 2018 8:31:02 GMT
Ah, but is the security decreasing over time too? May depend on gold price or consumer sentiment facing uncertainty. This will be a rolling stock facility with sales in/out to maintain 50% ltv so anticipated to be fairly up to date with stock audits. That said, who's doing the valuations? Assuming it's the borrower, I note Collateral's borrowers weren't too keen on taking their bling back even at 50%. My (unclear) point was that if the security is being maintained at 50% of the remaining debt, then the fact some of the original loan has been repaid does not improve the security. If the security was maintained at £x, a fixed amount of bling, then later tranches would indeed be safer. With dubious profitability, i rate later tranches as (somewhat) less secure, but i might still have £25 worth, since we did ask for summat other than property.
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dermot
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Post by dermot on Nov 29, 2018 10:55:38 GMT
As the Mind of the General Systems Vehicle comments, we did ask for more non-property loans, so I'll put in a modest amount.
Wasn't the other pawn mob (that so cruelly repaid their loans) looking to come back for more cash sometime soon?
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