iRobot
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Post by iRobot on Mar 18, 2020 16:55:58 GMT
Do BC pocket all the interest from loans up for sale on the secondary market? Yes - for the period that the loan is on the SM. It doesn't include interest earned prior to listing on the SM. Interesting how little discounting is going on. So far
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victors
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Post by victors on Mar 18, 2020 18:35:17 GMT
I think you'd have to be mad to put all loans up on the secondary market. Just sitting there with no interest and nobody buying it.
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iRobot
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Post by iRobot on Mar 19, 2020 9:59:34 GMT
I think you'd have to be mad to put all loans up on the secondary market. Just sitting there with no interest and nobody buying it. I think it would be unwise to put loans up on the secondary market with zero (or minimal) discount and still expect a sale anytime soon. That said, I think there are BC lenders with deep enough pockets, sufficiently diverse investment strategies and far enough investing horizons to recognise 'a bargain' and pick up offerings with a discount of 5% or more. Maybe a few repayments would see some re-cycling into the SM - especially if the flow of new loans reduces as per: " For the next few weeks we will slow down on new lending and reduce our new loan volume accordingly." It may interest some to know that, at the time of writing, out of an eligible loan book of approx £31M, around £270K - or less than 1% - is available on the SM.
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victors
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Post by victors on Mar 19, 2020 13:25:56 GMT
I'm starting to get tempted now.
Any larger discounts on long dated loans would be hard to resist.
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michaelc
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Post by michaelc on Mar 19, 2020 16:48:05 GMT
I'm starting to get tempted now. Any larger discounts on long dated loans would be hard to resist. Please go ahead I don't think now is the time to start chasing profit for 1% or 2%.
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victors
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Post by victors on Mar 20, 2020 14:44:33 GMT
I'm sure I saw the first 3% discount earlier, but it wasn't there for long.
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p2pfan
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Post by p2pfan on Mar 26, 2020 0:33:32 GMT
The max. 2% and 3% discounts on the secondary market are pathetic when stockmarket shares in businesses have collapsed c. 30% in value.
Lenders are not stupid and not going to buy loans to what have become extremely high-risk borrowers on the SM for a mere 2% discount. The fact that the loans have been sitting there for days and nobody is interested says it all.
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SteveT
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Post by SteveT on Mar 26, 2020 10:11:05 GMT
The max. 2% and 3% discounts on the secondary market are pathetic when stockmarket shares in businesses have collapsed c. 30% in value. Lenders are not stupid and not going to buy loans to what have become extremely high-risk borrowers on the SM for a mere 2% discount. The fact that the loans have been sitting there for days and nobody is interested says it all. Huh? Currently there are just 8 (count 'em!) loan parts offered for sale with any discount at all, out of maybe 40 parts in total. The BC secondary market allows lenders to offer their parts at discounts up to 50% (!) if they wish to. If there was any significant rush for the exit then you'd see many hundreds of parts being listed and discounts steadily rising as sellers competed for a buyer (see AC currently, for example). I attempted to buy a BC part offered with a 2% discount the other day and was unsuccessful, someone else beating me to it.
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