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Post by ablrate on Apr 19, 2019 9:02:31 GMT
We are just about to launch a new underwriter program that automates the sale of holdings at par. I'm not convinced that the last £100k of 120 of this did not go to underwriters - there was no firm undertaking not to do so. However, I do not worry too much about it since it would be a small part of the loan and I intend to hold for some time. Good that underwriting is being handled in the future with a thought for the SM, which is an indicator of the health of the platform as well as the route out for interest-only loans. Automated sales at par, yes, good, but I guess that manual sales below par by underwriters will be permitted. The effect of underwriting on liquidity is something I consider when lending on the Ablrate PM. 114 is still not finished at 95%.
You will see the new program soon.... there will be no underwriters who can sell at below par, only regular lenders
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Post by GSV3MIaC on Apr 19, 2019 9:09:31 GMT
What about the long promised (?) automation for bidding on new loans based on certain user selectable criteria?
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blender
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Post by blender on Apr 19, 2019 9:14:57 GMT
I'm not convinced that the last £100k of 120 of this did not go to underwriters - there was no firm undertaking not to do so. However, I do not worry too much about it since it would be a small part of the loan and I intend to hold for some time. Good that underwriting is being handled in the future with a thought for the SM, which is an indicator of the health of the platform as well as the route out for interest-only loans. Automated sales at par, yes, good, but I guess that manual sales below par by underwriters will be permitted. The effect of underwriting on liquidity is something I consider when lending on the Ablrate PM. 114 is still not finished at 95%.
You will see the new program soon.... there will be no underwriters who can sell at below par, only regular lenders Wow! We will get visibility of the programme. A condition of taking the underwriter benefits will be no unfair competition with lenders on the SM by selling below par. Better than I expected. I have to admit to being impressed! Too much past training by FC in the need to read what is not said as well as what is said. One becomes cynical.
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gustapher
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Post by gustapher on Apr 19, 2019 11:52:58 GMT
gustapher Way I see it there are lots of accounts out there that charge a fee for early access...so it's not much different, albeit better as sometimes you can get out at a profit. And so long as you've held the loan a few months you'll at least have earned the difference in interest (albeit it'll have been taxed....for me it's less of an issue as any loss on the loan price goes against CGT anyway, usually only a few quids worth but every little helps.) And if you only need some of your money it's not going to be a big issue is it? If you think you might need ALL of your money more quickly, should you really be putting it in p2p? It's one thing not being able to get out instantly or at par on a performing loan, but if a loan goes bad it could take several years (nearly 3 on the container loans now) before you get any money at all. Way I see it loan end dates are only really relevant to portfolio maintenance - if you think you'll need the capital in the next 5yrs, perhaps you should put it somewhere else. Unfortunately I think having SMs on platforms has perhaps given people far too high a feeling of security. Hi Pom, I still think my point is valid but reframing it in my mind as a fee is a clever way to view it more positively. I've got a lot of stuff going on in my personal life so I'm probably making mountains out of molehills. Thanks for the constructive advice. I don't need the capital I just get sick at looking at the below par market. I'll just do what everyone else does and not invest up front.
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nw99
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Post by nw99 on Apr 19, 2019 11:59:04 GMT
I'm not convinced that the last £100k of 120 of this did not go to underwriters - there was no firm undertaking not to do so. However, I do not worry too much about it since it would be a small part of the loan and I intend to hold for some time. Good that underwriting is being handled in the future with a thought for the SM, which is an indicator of the health of the platform as well as the route out for interest-only loans. Automated sales at par, yes, good, but I guess that manual sales below par by underwriters will be permitted. The effect of underwriting on liquidity is something I consider when lending on the Ablrate PM. 114 is still not finished at 95%.
You will see the new program soon.... there will be no underwriters who can sell at below par, only regular lenders Fantastic again leading the way thank you
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nw99
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Post by nw99 on Apr 22, 2019 20:31:05 GMT
Having hoovered up the loan at below 97 looks like the seller is done . Unable to buy any cheap ones today.
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Post by ablrate on Apr 23, 2019 15:05:41 GMT
What about the long promised (?) automation for bidding on new loans based on certain user selectable criteria? It is there right now and we should be able to launch it soon... it is some UI stuff we don't like. We also had to untangle the trading element (i,e the secondary market trading), which will be rolled out by ASMX
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number5
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Post by number5 on Jul 30, 2019 14:53:31 GMT
Is there a reason why new loans are being sold at some crazy discounts, surely making an overall loss? Take 1000124 for example
I read about the underwriters, but those are sold at par
Is it people who invested from the day the loan launched, and using these returns to bring down the discount?
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blender
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Post by blender on Jul 30, 2019 17:33:58 GMT
Is there a reason why new loans are being sold at some crazy discounts, surely making an overall loss? Take 1000124 for example I read about the underwriters, but those are sold at par Is it people who invested from the day the loan launched, and using these returns to bring down the discount? These discounts on new loans are not general, are they. It seems to be specific to the borrower on 120 and 124. With the assurances on underwriters, I went fairly heavy on 120 and it was not heavily sold, by volume, until they decided to have a second bite of the cherry with 124. That certainly annoyed me, and may have caused others to re-appraise their view. Formal underwriters may have rules applied, but you wonder who might help to get a loan over the line, and for what purpose, and then dispose of the unwanted loan through the SM for a few %.
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Post by ablrate on Jul 31, 2019 8:42:23 GMT
Is there a reason why new loans are being sold at some crazy discounts, surely making an overall loss? Take 1000124 for example I read about the underwriters, but those are sold at par Is it people who invested from the day the loan launched, and using these returns to bring down the discount? These discounts on new loans are not general, are they. It seems to be specific to the borrower on 120 and 124. With the assurances on underwriters, I went fairly heavy on 120 and it was not heavily sold, by volume, until they decided to have a second bite of the cherry with 124. That certainly annoyed me, and may have caused others to re-appraise their view. Formal underwriters may have rules applied, but you wonder who might help to get a loan over the line, and for what purpose, and then dispose of the unwanted loan through the SM for a few %.
We can say that none of the offers in the SM are from underwriters
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nw99
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Post by nw99 on Jul 31, 2019 8:52:55 GMT
Thank then makes me even more sure to buy some more at a big discount must be just a scrappy small seller
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macq
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Post by macq on Jul 31, 2019 9:52:16 GMT
Thank then makes me even more sure to buy some more at a big discount must be just a scrappy small seller or a non scrappy HNW
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blender
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Post by blender on Jul 31, 2019 9:55:53 GMT
Thank then makes me even more sure to buy some more at a big discount must be just a scrappy small seller I am very sure that you know what you are doing nw99, but I would not easily accept the scrappy small seller argument - apart from the ones that I have sold recently of course. I accept Ablrate's assurance that underwriters are not currently offering 120 and 124. However there may be other sellers. 120 reached its minimum in the due time, but was extended by two weeks to go for the maximum. It crawled up slowly, and suddenly on 12 April the last £100k was suddenly found. I would not be at all surprised to find that this might be a short-term lender encouraged by or on behalf of the borrower and not part of any Ablrate underwriting system. I have no knowledge of this and would consider it an entirely proper activity. However, this could result in a dip in the SM value for a period of time. Or it could be a consequence of 124 following 120 so soon. If you wish to be a flipper on Ablrate without being an underwriter, then the ones that dive after drawdown are the ones which present an opportunity - and a risk.
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nw99
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Post by nw99 on Jul 31, 2019 10:15:52 GMT
Thanks Blender happy to hold as it’s FTSE listing will come soon
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blender
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Post by blender on Aug 2, 2019 15:30:38 GMT
Thanks Blender happy to hold as it’s FTSE listing will come soon Still happy? I have a chunk left!
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