cooling_dude
Bye Bye's for the PPI
Posts: 2,853 
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Post by cooling_dude on Aug 22, 2016 14:53:30 GMT
The website has now changed the text on the picture to "Sale Agreed"
Getting close...
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Post by jonboy73 on Aug 23, 2016 16:56:31 GMT
The website has now changed the text on the picture to "Sale Agreed" Getting close... If they manage a positive resolution to this, and for those invested I hope they do (I'm not), I think you'll see every negative day loan fly off the SM in a heartbeat.
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ablender
Member of DD Central
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Post by ablender on Aug 29, 2016 14:13:06 GMT
Did you see this one - dining with the in-laws  "In with lawyers." |
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Liz
Member of DD Central
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Post by Liz on Sept 7, 2016 18:02:46 GMT
Members are still buying into this loan! Doesn't seem the best loan in the portfolio to me.
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micro2
New Member
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Post by micro2 on Sept 8, 2016 1:41:14 GMT
I agree, investing in this lone now seems like madness to me.
It says “Offer received for nearly full amount of outstanding SS loan”
So I am assuming it would require a top-up from the provision fund to return 100% of lenders capital.
I personally would take it a given that no interest will be paid since it went into default. And consider it good fortune if any was paid.
I can only assume that people are investing in good faith they will get all their money + interest back. I guess they figure SS will use the PF to cover all capital + interest for the purpose of maintaining a good reputation and their 0 loss record.
Which I agree is a possibility, but I would not bank on it.
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Post by Deleted on Sept 8, 2016 6:35:53 GMT
I agree, investing in this lone now seems like madness to me. It says “Offer received for nearly full amount of outstanding SS loan” So I am assuming it would require a top-up from the provision fund to return 100% of lenders capital. I personally would take it a given that no interest will be paid since it went into default. And consider it good fortune if any was paid. I can only assume that people are investing in good faith they will get all their money + interest back. I guess they figure SS will use the PF to cover all capital + interest for the purpose of maintaining a good reputation and their 0 loss record. Which I agree is a possibility, but I would not bank on it. Zero loss means zero loss on capital. Never heard of anyone using it to discuss eventual interest on defaulted loans. I am assuming the SS team is responsible and will not deplete funds in something unstainable (like interests on defaulted loans).
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nick
Member of DD Central
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Post by nick on Sept 8, 2016 7:31:17 GMT
I agree, investing in this lone now seems like madness to me. It says “Offer received for nearly full amount of outstanding SS loan” So I am assuming it would require a top-up from the provision fund to return 100% of lenders capital. I personally would take it a given that no interest will be paid since it went into default. And consider it good fortune if any was paid. I can only assume that people are investing in good faith they will get all their money + interest back. I guess they figure SS will use the PF to cover all capital + interest for the purpose of maintaining a good reputation and their 0 loss record. Which I agree is a possibility, but I would not bank on it. Perhaps its just a variation of the greater fool theory - as long as there are other/greater fools around to resell this loan to in the future, who cares on the eventual outcome. Just look at the bond market where negative yields are increasingly common yet demand is unwavering (as long as central banks remain buyers). Although, in the case of PBL 20, there doesn't seem to be enough churn/fools buying for this to be a rational investment strategy.............
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Post by GSV3MIaC on Sept 8, 2016 8:01:12 GMT
Bonds are still paying interest meantime, PBL20 may not be ... Certainly isn't paying interest before maturity.
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Liz
Member of DD Central
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Post by Liz on Sept 8, 2016 8:39:23 GMT
I agree, investing in this lone now seems like madness to me. It says “Offer received for nearly full amount of outstanding SS loan” So I am assuming it would require a top-up from the provision fund to return 100% of lenders capital. I personally would take it a given that no interest will be paid since it went into default. And consider it good fortune if any was paid. I can only assume that people are investing in good faith they will get all their money + interest back. I guess they figure SS will use the PF to cover all capital + interest for the purpose of maintaining a good reputation and their 0 loss record. Which I agree is a possibility, but I would not bank on it. Zero loss means zero loss on capital. Never heard of anyone using it to discuss eventual interest on defaulted loans. I am assuming the SS team is responsible and will not deplete funds in something unstainable (like interests on defaulted loans). Good points. Assuming that the PF doesn't cover interest, then that will have a big knock on effect on the SM; the flipping of short dated and negative loans will become much harder. Savers. members. Investors may become stuck in a liquidity trap.
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adrianc
Member of DD Central
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Post by adrianc on Sept 8, 2016 8:50:30 GMT
Assuming that the PF doesn't cover interest, then that will have a big knock on effect on the SM; the flipping of short dated and negative loans will become much harder. I'm really not sure it's anywhere near as simple as short/-ve date == greater default risk.
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Post by geraldine1210 on Sept 8, 2016 9:09:17 GMT
In my humble opinion the pf should be used to top up any loss on capital. It should not be used to fund interest after the default.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Sept 8, 2016 9:12:52 GMT
Whether the PF should be used for Capital only or Capital + Interest was covered in this thread along with a poll. The overwhelming response by the members on this forum was that the PF should only cover the capital (82%). |
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Post by geraldine1210 on Sept 8, 2016 9:15:36 GMT
Whether the PF should be used for Capital only or Capital + Interest was covered in this thread along with a poll. The overwhelming response by the members on this forum was that the PF should only cover the interest (82%). Very puzzled as to why anybody is still investing in this loan.
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micky
Member of DD Central
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Post by micky on Sept 8, 2016 9:15:54 GMT
What about investors who continue to purchase loans parts knowing fully well that the loan has defaulted??
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Post by dualinvestor on Sept 8, 2016 9:16:53 GMT
Whether the PF should be used for Capital only or Capital + Interest was covered in this thread along with a poll. The overwhelming response by the members on this forum was that the PF should only cover the interest (82%). ? Wasn't the conclusion of voters capital only
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