Stats on loans fully redeemed on the initial redemption date
May 30, 2019 12:48:03 GMT
westcountry and muttley916 like this
Post by sapphire on May 30, 2019 12:48:03 GMT
ablrate
Are there any stats available of what amount/number/percentage of Ablrate loans over the past few years have actually been redeemed on the initial (launch) redemption date in full (no loss of capital)?
Background to this question:
Over the recent months there appear to be number of loans which have been extended and/or restructured rather than being redeemed on the initial (launch) maturity date. (e.g. as noted by blender elsewhere, Loan 80 was drawn down on 29 Sep 2017, for min 6 months and max 10 months. It has now been extended to 21 months.)
Whilst extending/restructuring may be a better alternative to defaulting, with a risk of (significant?) loss of capital, this is not always ideal and if there is a minimum price on the SM, this restricts liquidity and those lenders who wish to exit on the promised maturity date are locked. Even where the minimum price on the SM is not restricted, this could mean that to exit on the initial promised redemption date, lenders may suffer some loss of capital.
Some other platforms (e.g. Proplend) provide a higher penalty rate of interest if the loan is not redeemed on time, to compensate for the increased (explicit and/or implicit) risk due to the delayed redemption, but Ablrate does not do so, so by extending / restructuring, lenders are effectively receiving the initial (or possibly lower) rate of interest, despite an increased risk due to the delayed redemption.
So as extending / restructuring usually means that the returns promised at launch are not met on time, it would be useful to know what percentage/amount/number of Ablrate loans have actually met their initial promised returns on time.
Are there any stats available of what amount/number/percentage of Ablrate loans over the past few years have actually been redeemed on the initial (launch) redemption date in full (no loss of capital)?
Background to this question:
Over the recent months there appear to be number of loans which have been extended and/or restructured rather than being redeemed on the initial (launch) maturity date. (e.g. as noted by blender elsewhere, Loan 80 was drawn down on 29 Sep 2017, for min 6 months and max 10 months. It has now been extended to 21 months.)
Whilst extending/restructuring may be a better alternative to defaulting, with a risk of (significant?) loss of capital, this is not always ideal and if there is a minimum price on the SM, this restricts liquidity and those lenders who wish to exit on the promised maturity date are locked. Even where the minimum price on the SM is not restricted, this could mean that to exit on the initial promised redemption date, lenders may suffer some loss of capital.
Some other platforms (e.g. Proplend) provide a higher penalty rate of interest if the loan is not redeemed on time, to compensate for the increased (explicit and/or implicit) risk due to the delayed redemption, but Ablrate does not do so, so by extending / restructuring, lenders are effectively receiving the initial (or possibly lower) rate of interest, despite an increased risk due to the delayed redemption.
So as extending / restructuring usually means that the returns promised at launch are not met on time, it would be useful to know what percentage/amount/number of Ablrate loans have actually met their initial promised returns on time.
