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Post by Ton ⓉⓞⓃ on Sept 30, 2014 16:52:40 GMT
36month, £3.4m, ltv69%, rate9.5%
In preview
IN EDIT Long auction of 37 days
2nd IN EDIT Now re-set to just ten day auction
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kermie
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Post by kermie on Sept 30, 2014 18:40:03 GMT
...and fully underwritten. I have a hunch this is the way AC will go (no inside information - just a hunch) when the new site launches - i.e., underwriting will be secured before a loan appears...and maybe even the PM will disappear totally and lenders won't be able to purchase until drawdown on the AM. Total speculation, though!
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mikes1531
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Post by mikes1531 on Sept 30, 2014 18:42:05 GMT
36month, £3.4m, ltv69%, rate9.5% In preview Would this be a new record for AC loan size? Can someone remind me when a previewing loan is opened for pre-bids? This one certainly isn't yet. Does that start when the 'auction' start time is set? Not that I think we'll have to worry about pre-bidding on this one -- there'll be more than enough available to satisfy everyone. But there's another loan in preview for which the questions/answers are more relevant.
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mikes1531
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Post by mikes1531 on Sept 30, 2014 18:46:24 GMT
...and fully underwritten. I have a hunch this is the way AC will go (no inside information - just a hunch) when the new site launches - i.e., underwriting will be secured before a loan appears...and maybe even the PM will disappear totally and lenders won't be able to purchase until drawdown on the AM. Total speculation, though! I think that's likely. Drawdown delays and 'dead' money have been an issue at AC for a long time, and that solution would make the problem go away. The obvious concern from a lender's point of view is how much the underwriting will cost AC, and how much that affects the returns available to non-underwiters.
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tonyr
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Post by tonyr on Oct 3, 2014 13:38:52 GMT
Unusually this loan appeared fully underwritten in one amount.
Perhaps AC would like to comment whether some large corporate investors have just come on board.
I for one are somewhat nervous about big changes.
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Post by andrewholgate on Oct 3, 2014 14:17:55 GMT
This was not one corporate investor, but a sole person who liked the loan and was prepared to underwrite it in full. What we are trying to get to is where every loan that is listed is underwritten at the point it lists. This should give lenders more confidence in our business. We are not quite there yet, but we had another loan list in preview that is also fully underwritten at point of listing.
Andrew
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tonyr
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Post by tonyr on Oct 3, 2014 15:40:01 GMT
Gosh. So in one stroke you've increased AUM by almost 1% - well done. That must be a good end to the week for you.
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Post by bracknellboy on Oct 4, 2014 8:54:52 GMT
Note: I've merged the 2 threads that existed on this loan.
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mikes1531
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Post by mikes1531 on Nov 19, 2014 3:38:42 GMT
This was not one corporate investor, but a sole person who liked the loan and was prepared to underwrite it in full. What we are trying to get to is where every loan that is listed is underwritten at the point it lists. This should give lenders more confidence in our business. This loan was drawn down two weeks ago, and AFAIK no units have appeared on the Aftermarket yet. This seems rather odd, especially for such a large loan. andrewholgate: You referred to this bidder as an underwriter, but they don't seem to be very eager to act like an underwriter and release the units to 'ordinary' lenders. Can you shed any light on this? Has this person decided to keep the whole loan for themself? Underwriters are paid to provide a service to AC. Has this one just taken advantage of the terms available to underwriters and used them to enhance their own return to the exclusion of the rest of us?
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duck
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Post by duck on Nov 19, 2014 5:15:59 GMT
I've picked up the grand sum of £27.40 on the aftermarket but probably like others who bid on the original auction (my business holds £1K) I see no point/want/need to sell at the present.
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hendragon
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Post by hendragon on Nov 19, 2014 8:13:55 GMT
perhaps ac should "re-brand" underwriters as major investors.I also think that there is a danger that current retail investors are going to feel rather left out, if this loan establishes a pattern.
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TFTO
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Post by TFTO on Nov 19, 2014 9:41:32 GMT
I can see no reason why retail investors are now excluded from bidding. I should have thought our money was as good as the underwriters.
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hendragon
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Post by hendragon on Nov 19, 2014 10:10:55 GMT
I can see no reason why retail investors are now excluded from bidding. I should have thought our money was as good as the underwriters. there is no bidding for retail investors anymore. My understanding of the new site is that loans will only be available on the am via setting loan targets and funding the MLIA. If there is a blurring of the distinction between underwriting and investing, as seems to be the case here, it does raise some interesting questions for the retail investor
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oldgrumpy
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Post by oldgrumpy on Nov 19, 2014 10:25:24 GMT
Feels a bit like FC's whole loans. AC loans/auctions are only open to underwriters. Smaller lenders then pick up portions from those underwriters who are doing it for the margin and quick turnover. Underwriters (big investors) who are doing it as an investment do not need to sell at all. The difference is that FC throw open what the big investors don't want to the crowd as auctions.
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niceguy37
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Post by niceguy37 on Nov 19, 2014 10:25:51 GMT
I can see no reason why retail investors are now excluded from bidding. I should have thought our money was as good as the underwriters. Some lenders were frustrated at the sometimes long drawdown times supposed required to lock down the security, during which interest did not generally accrue. I believe underwriters avoided this problem by only coughing up the actual cash just before drawdown, neatly sidestepping the problem. As a result most retail lenders found it best to go straight to the AfterMarket so it seems AC have decided to phase out retail lender bidding on the new website. It remains to be seen how this will play out. Retail lenders start to earn interest immediately on loan purchases, but there's (as far as I am aware) nothing stopping underwriters holding on to the tastiest loans for themselves, and one supposes there is less crowd due diligence without the retail lenders.
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