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Post by overthehill on Apr 28, 2021 16:14:42 GMT
Is everyone convinced that the security includes the freehold and it is already split from the rest of the not so small building ? The valuation is assumptive of the freehold title but I find the loan proposal wording less than clear.
Has anyone discerned the borrower's intended exit strategy ? Is it sell or develop or either ?
I don't find ablrate's key information summary particularly good but there is plenty of reading!
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blender
Member of DD Central
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Post by blender on Apr 30, 2021 13:12:17 GMT
This loan is supposed to be closed and drawn down today, using underwriters. It's currently still available if wanted.
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withnell
Member of DD Central
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Post by withnell on Apr 30, 2021 14:48:05 GMT
This loan is supposed to be closed and drawn down today, using underwriters. It's currently still available if wanted. IR now paid - so it's gone!
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Post by overthehill on Apr 30, 2021 14:58:33 GMT
A noticeable lack of chat about this loan so I assume it is happening in DD central. I see two things that look 'curious' to me, so it's a pass.
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criston
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Post by criston on Apr 30, 2021 16:14:57 GMT
I note £50000 offer at 100%
Are the underwriters obliged to put up for sale a proportion of their £596k holding ?
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macq
Member of DD Central
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Post by macq on Apr 30, 2021 16:21:20 GMT
A noticeable lack of chat about this loan so I assume it is happening in DD central. I see two things that look 'curious' to me, so it's a pass.
No chatter in DD and i did not invest but you now have me curious as well
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Post by Ace on Apr 30, 2021 16:35:48 GMT
I note £50000 offer at 100% Are the underwriters obliged to put up for sale a proportion of their £596k holding ? I don't think the underwriters are obliged to sell, but if they do it must be at par.
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Post by df on Apr 30, 2021 17:56:31 GMT
I note £50000 offer at 100% Are the underwriters obliged to put up for sale a proportion of their £596k holding ? I don't think the underwriters are obliged to sell, but if they do it must be at par. My guess is that at least 40k of the offer is from underwriters. I might be wrong, but I don't think this loan was good for flippers. I doubt it will ever sell at premium.
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Post by Ace on Apr 30, 2021 18:10:56 GMT
I don't think the underwriters are obliged to sell, but if they do it must be at par. My guess is that at least 40k of the offer is from underwriters. I might be wrong, but I don't think this loan was good for flippers. I doubt it will ever sell at premium. Looks like 5 tranches of £10k each from the underwriter to me. Impossible to be certain, but I doubt anyone else would have bothered to put £10k in the loan purely to get the Instant Returns for under a week. Especially given the risk that they'd be stuck with a loan they didn't want.
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criston
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Post by criston on Apr 30, 2021 18:19:05 GMT
What level of discount do the underwriters tend to pick up the surplus for ?
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Post by Badly Drawn Stickman on Apr 30, 2021 18:36:06 GMT
What level of discount do the underwriters tend to pick up the surplus for ? No discount. Ablrate pay them a percentage, probably around 5% (DPF) out of their cut.
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blender
Member of DD Central
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Post by blender on Apr 30, 2021 18:37:37 GMT
What level of discount do the underwriters tend to pick up the surplus for ? From previous Ablrate comments I think that discount is the wrong word. I guess they get paid a fee which has a relationship with Ablrates fees. We know they are not allowed to sell below par, which will put a ceiling on this loan's trading.
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Post by df on Apr 30, 2021 19:24:24 GMT
My guess is that at least 40k of the offer is from underwriters. I might be wrong, but I don't think this loan was good for flippers. I doubt it will ever sell at premium. Looks like 5 tranches of £10k each from the underwriter to me. Impossible to be certain, but I doubt anyone else would have bothered to put £10k in the loan purely to get the Instant Returns for under a week. Especially given the risk that they'd be stuck with a loan they didn't want. I just thought £9,850.24 is a bit odd figure, otherwise it looks like 0.5m trade comes from the underwriter. I went steady on this one (30% of my usual per new borrower), it was obvious that the exit will be only available with discount and the project feels riskier that some of 13%-15% offers on ABL.
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Post by Ace on Apr 30, 2021 19:39:16 GMT
Looks like 5 tranches of £10k each from the underwriter to me. Impossible to be certain, but I doubt anyone else would have bothered to put £10k in the loan purely to get the Instant Returns for under a week. Especially given the risk that they'd be stuck with a loan they didn't want. I just thought £9,850.24 is a bit odd figure, otherwise it looks like 0.5m trade comes from the underwriter. I went steady on this one (30% of my usual per new borrower), it was obvious that the exit will be only available with discount and the project feels riskier that some of 13%-15% offers on ABL. I presumed it was originally £10k and £149.76 of it had already sold.
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Post by df on Apr 30, 2021 20:41:59 GMT
I didn't watch the end of show, does anyone know what sum underwriters ended with?
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