Various Loan Updates (Assetz Capital)

#136 is one of the 'saga' loans so its been over 2.5 years since it originally defaulted (15% interest since then and nearly all paid now) but 1.5 years since receivers were appointed as AC tried to allow the borrower to sort themselves (with lenders consent) They are much less tolerant these days and so are lenders.
#198 was never defaulted but was restructured with lender consent and use of retianed buffer to cover interest, allowing the borrower to succesfully refinance.

Generally AC comms have been very good. #136 as one of the early 'problem bridging loans' wasnt perhaps as good as more recent comms but then AC leant and are very good these days. One thing to note is that AC are probably the only platform that asks lenders to vote on courses of action or if they dont call a vote because they believe in a specific course do allow lenders to raise objections prior to implementing it (exception is during recovery action when professional recommendations are not put to vote). The other point is they charge default interest which is passed on to lenders and dont automatically suspend loans that are in default, only if legal proceedings have been initiated for recovery. That means that lenders who dont agree with a course of action can get out through the SM (discounts permitted) and make their own judgement on risk. Comms are detailed including admin/receiver reports. Sometimes they do need to be chased buy Id probably give them at least an 8.

You can follow the process yourself as most of the info is available on the activity tabs/q&A (just a few price sensitive bits only through direct email) Also discussions on the pink boards if you want lender opinions

Not really sure if this is the correct thread but there isnow a whole bunch of Upcoming Loans listed at between 5.5 and 7%. For the life of me I cannot see they are any lower risk than when such loans were offerred at 8/9/10%. Is it the market or AC's profit margins causing this phenomenon, methinks both but mostly the latter.
Either one means reduce commitment to AC (and P2P?).

I agree re 504... just wishing I’d had a bigger slice... sometimes I need to be braver.

In less positive news, #92 seems to be in trouble. With around 50% of capital already repaid it hopefully won’t be a drama, but likely another one on the list of challenges for the AC recovery team.

Theres a few reasons.
- the 7% black box accounts don't invest in 7% loans, so you take a higher risk for 7% in black box (assuming risk and return are alligned on average)
- you can't discount loans in black box to sell them so less flexibility
- PF parameters not clear
- adds diversity to MLIA

I do put (smaller) amounts in 7% loans in MLIA as part of an overall balanced approach (currently 8.8%).

Why are you so selective in the bits of the email that you have quoted? You failed to mention the wonderful alternative opportunities that there are on the AC platform to reinvest your repayments.

#280 W******* Hotel

This nice little traditional hostelry has just repaid.  Another successful loan for everyone. (Jeez, beginning to sound like GeorgeT )