1000120 Engineering firm acquisition finance (ABL)

I'm in this one too, as, like you, I think we need to support/encourage more borrowers to get better diversification. I'm guessing that many are holding back in the hope that they can pick up underwriter discounts when it goes live. Times seem to have changed; it wasn't long ago that you could buy extra and flip at a premium when loans went live. Or, perhaps it can always go either way depending of the perceived security of the loan.

This one's done quite well to get to £800k given that, as you suspected, the OH loans haven't matured in time.

Do we know whether underwriters are employed on this one? And if so, will ABLrate sell the difference up £1.2m to them. Presumably there would still be a profit for both ABLrate and the underwriters in doing this.

Ah yes, thanks. I do recall that now. I think I may be trying to manage too many platforms on too little sleep at the moment. Hopefully my walking holiday in the lakes next week will refresh my dozy brain.

Personally I'm ok with underwriters helping projects over the line, and I'm happy to pick up the odd discount to help reinvest returns.

I presume ABLrate's intended policy of limiting underwriter's ability to offload their holdings at a discount is to reduce lender's expectation of these, and hence, make them more likely to commit during the funding phase. And also to reduce the costs of employing underwriters in the first place, which makes sense. If successful, it could result in the opposite situation, where lenders buy extra in the hope of offloading at a premium. I think that there is a very fine balance between the two situations, but the second is healthier (more profitable) for ABLrate, which additionally benefits lenders through being able to attract more borrowers. It could put new lenders off due to the initial cost of buying at premium on the SM for diversification, but scarcity of supply usually increases demand. The beauty of ABLrate's fully functional SM is that everything finds its true level.

On this particular loan it also makes sense to get it away at £850k without underwriters, but with a view to providing extra funds through a second loan in 6 months time if this one is running well. They could then use the SM as a bellwether for lender appetite (no major discounting on the SM would indicate that it was worth a try).

Sorry for rambling on, but writing it down helps me think it through.

Doubt you can buy at a discount 

Over the line - right on time.

Good luck with that, I think. Lenders did push hard to get it over the £850k mark in the last few days. But an extra two weeks' instant returns will be welcome.

It's closed now.

The loan information document states the following in the timeline:



"July'19

Admission to Standard Market, London Stock Exchange"



Did this company admit to the LSE in July? It's nearly September now, but I can't see any reference to this happening online?



Is this not occuring perchance a sign of any issues with the company?