ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,568 
Likes: 10,743
|
Post by ilmoro on Jul 17, 2023 12:38:57 GMT
I think it's worth noting that CP are prepared to accept a negative spread in order to stick to their new lender rates for some new tranches of older loans that were arranged at lower borrower rates. Tomorrow's scheduled loan is an example. The Borrower is paying 9.25, but lenders are receiving 10% for this tranche. CP also get a 3% arrangement fee minus a 1% introducer fee, so they will still get some net income. Needs to be considered with caution. I note that some of the tranche loans come with a caveat that the additional rate ranks behind the capital & original interest (annoying original rate not stated in particulars)
|
|
Ace
Member of DD Central
Posts: 4,666
Likes: 5,197
Member is Online
|
Post by Ace on Jul 17, 2023 16:20:08 GMT
I think it's worth noting that CP are prepared to accept a negative spread in order to stick to their new lender rates for some new tranches of older loans that were arranged at lower borrower rates. Tomorrow's scheduled loan is an example. The Borrower is paying 9.25, but lenders are receiving 10% for this tranche. CP also get a 3% arrangement fee minus a 1% introducer fee, so they will still get some net income. Needs to be considered with caution. I note that some of the tranche loans come with a caveat that the additional rate ranks behind the capital & original interest (annoying original rate not stated in particulars) Sounds fair to me. The capital and original interest ranks equally between all tranches.
|
|
