hazellend
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Post by hazellend on Aug 3, 2021 8:39:45 GMT
This new product sounds interesting. Might even tempt me back in. Wondering if it is a new borrower or one of the old favourites
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dave4
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Cynical is a hobby not a lifestyle
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Post by dave4 on Aug 3, 2021 9:44:01 GMT
Just for you hazellend  I anticipated you may ask so i reached out to ablrate and .....  Dear .......Me.. hazellendThank you for taking the time to give us your feedback, it's really useful to get a gauge of our lender's appetite for this particular loan. It is a brand new borrower, we have undertaken our usual thorough and critical analysis to satisfy our due diligence, and if the loan is proven successful we have the ability to potentially list regular tranches so it is an exciting prospect. Kind regards Emma |
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huxs
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Post by huxs on Aug 3, 2021 10:04:49 GMT
Just for you hazellend I anticipated you may ask so i reached out to ablrate and ..... Dear .......Me.. hazellend Thank you for taking the time to give us your feedback, it's really useful to get a gauge of our lender's appetite for this particular loan. It is a brand new borrower, we have undertaken our usual thorough and critical analysis to satisfy our due diligence, and if the loan is proven successful we have the ability to potentially list regular tranches so it is an exciting prospect. Kind regards Emma Did you find out more about it, how does it work we lend money to someone with the bonds held as collateral (with ~50% LTV) ?
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dave4
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Cynical is a hobby not a lifestyle
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Post by dave4 on Aug 3, 2021 10:14:28 GMT
Sorry no more info was forth coming. Im sure ablrate will be along at some point for a chat, or you could always E mail direct. |
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blender
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Post by blender on Aug 3, 2021 13:36:28 GMT
Just for you hazellend I anticipated you may ask so i reached out to ablrate and ..... Dear .......Me.. hazellend Thank you for taking the time to give us your feedback, it's really useful to get a gauge of our lender's appetite for this particular loan. It is a brand new borrower, we have undertaken our usual thorough and critical analysis to satisfy our due diligence, and if the loan is proven successful we have the ability to potentially list regular tranches so it is an exciting prospect. Kind regards Emma Did you find out more about it, how does it work we lend money to someone with the bonds held as collateral (with ~50% LTV) ? My understanding would be that our borrower holds corporate bonds (ie debt) issued by this larger company, which are tradeable and therefore have a market value. Our lending to this borrower would not exceed 50% of the market value of the bonds held by the borrower. You might ask why not sell the bonds and use the cash instead of borrowing from us, but that could be asked about any security asset. So it's debt secured on better debt, I assume. At 8% you would hope that the bonds would be of good quality - rather more Triple-A than Junk. This post may also be Junk, in which case ablrate can correct it and we will be wiser. New initiatives always welcome, though this has a scent of the portfolio loans, which did not have good luck.
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criston
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Post by criston on Aug 3, 2021 14:50:33 GMT
Up it to 10% and I'm in.
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registerme
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Post by registerme on Aug 3, 2021 14:51:14 GMT
Interesting. Back in the early days ablrate hosted a loan to a company that used the proceeds to invest in (loans of?) other companies. It met its interest payments on time and repaid the capital on time, but iirc the FCA frowned upon this.
Anyway, I must have missed the comms on this. Any idea when it's going live? No harm in taking a look.
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Post by Badly Drawn Stickman on Aug 3, 2021 14:59:59 GMT
Did you find out more about it, how does it work we lend money to someone with the bonds held as collateral (with ~50% LTV) ? My understanding would be that our borrower holds corporate bonds (ie debt) issued by this larger company, which are tradeable and therefore have a market value. Our lending to this borrower would not exceed 50% of the market value of the bonds held by the borrower. You might ask why not sell the bonds and use the cash instead of borrowing from us, but that could be asked about any security asset. So it's debt secured on better debt, I assume. At 8% you would hope that the bonds would be of good quality - rather more Triple-A than Junk. This post may also be Junk, in which case ablrate can correct it and we will be wiser. New initiatives always welcome, though this has a scent of the portfolio loans, which did not have good luck. Presumably our lending would be to fund the purchase of yet more 'good debt' that we could in turn lend against in a further tranche? Edit. We still have the portfolio loan, and probably will for some time yet, I believe it was covered in a sentence in the update.
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archie
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Post by archie on Aug 3, 2021 15:09:41 GMT
Interesting. Back in the early days ablrate hosted a loan to a company that used the proceeds to invest in (loans of?) other companies. It met its interest payments on time and repaid the capital on time, but iirc the FCA frowned upon this. Anyway, I must have missed the comms on this. Any idea when it's going live? No harm in taking a look. It's mentioned in the update video email that was sent yesterday at 15:22. At the moment they are just looking for feedback.
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eeyore
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Post by eeyore on Aug 3, 2021 15:36:22 GMT
My understanding would be that our borrower holds corporate bonds (ie debt) issued by this larger company, which are tradeable and therefore have a market value. Our lending to this borrower would not exceed 50% of the market value of the bonds held by the borrower. You might ask why not sell the bonds and use the cash instead of borrowing from us, but that could be asked about any security asset. So it's debt secured on better debt, I assume. At 8% you would hope that the bonds would be of good quality - rather more Triple-A than Junk. This post may also be Junk, in which case ablrate can correct it and we will be wiser. New initiatives always welcome, though this has a scent of the portfolio loans, which did not have good luck. Presumably our lending would be to fund the purchase of yet more 'good debt' that we could in turn lend against in a further tranche? Sorry, I just don't understand the benefit of this loan to the Ablrate retail lender. If the borrower is using funds from Ablrate lenders to buy corporate bonds in the marketplace, presumably there must be a margin between the interest paid by the corporate bonds and the interest+fees which the borrower has to pay to Ablrate's lenders. So wouldn't lenders get a better rate of return from buying corporate bonds in the marketplace directly or through a collective fund, ETF or investment trust? What am I missing?
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Post by Ace on Aug 3, 2021 15:45:05 GMT
Presumably our lending would be to fund the purchase of yet more 'good debt' that we could in turn lend against in a further tranche? Sorry, I just don't understand the benefit of this loan to the Ablrate retail lender. If the borrower is using funds from Ablrate lenders to buy corporate bonds in the marketplace, presumably there must be a margin between the interest paid by the corporate bonds and the interest+fees which the borrower has to pay to Ablrate's lenders. So wouldn't lenders get a better rate of return from buying corporate bonds in the marketplace directly or through a collective fund, ETF or investment trust? What am I missing? I think that the bonds held by the borrower are simply our loan security. We have no idea what the actual business of the borrower is yet, presumably not just bond purchasing.
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Post by Badly Drawn Stickman on Aug 3, 2021 16:23:13 GMT
Sorry, I just don't understand the benefit of this loan to the Ablrate retail lender. If the borrower is using funds from Ablrate lenders to buy corporate bonds in the marketplace, presumably there must be a margin between the interest paid by the corporate bonds and the interest+fees which the borrower has to pay to Ablrate's lenders. So wouldn't lenders get a better rate of return from buying corporate bonds in the marketplace directly or through a collective fund, ETF or investment trust? What am I missing? I think that the bonds held by the borrower are simply our loan security. We have no idea what the actual business of the borrower is yet, presumably not just bond purchasing. Given it is being offered as a repeatable exercise, I think my 'pin the tail on the donkey' has merit. Despite not being intended as serious discussion. I think we are simply being asked if 8% holds any interest as a level of return and have not actually been told anything (yet) worth further discussion.
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blender
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Post by blender on Aug 3, 2021 16:23:57 GMT
Sorry, I just don't understand the benefit of this loan to the Ablrate retail lender. If the borrower is using funds from Ablrate lenders to buy corporate bonds in the marketplace, presumably there must be a margin between the interest paid by the corporate bonds and the interest+fees which the borrower has to pay to Ablrate's lenders. So wouldn't lenders get a better rate of return from buying corporate bonds in the marketplace directly or through a collective fund, ETF or investment trust? What am I missing? I think that the bonds held by the borrower are simply our loan security. We have no idea what the actual business of the borrower is yet, presumably not just bond purchasing. Yes, I was assuming that the bonds were just an asset. The borrower might have a valuable concession to mine for cheese on the moon, or something even better.
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registerme
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Post by registerme on Aug 3, 2021 17:41:16 GMT
I think that the bonds held by the borrower are simply our loan security. We have no idea what the actual business of the borrower is yet, presumably not just bond purchasing. Yes, I was assuming that the bonds were just an asset. The borrower might have a valuable concession to mine for cheese on the moon, or something even better. Plausible.
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qlassa
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Post by qlassa on Aug 3, 2021 21:42:41 GMT
Sorry, I just don't understand the benefit of this loan to the Ablrate retail lender. If the borrower is using funds from Ablrate lenders to buy corporate bonds in the marketplace, presumably there must be a margin between the interest paid by the corporate bonds and the interest+fees which the borrower has to pay to Ablrate's lenders. So wouldn't lenders get a better rate of return from buying corporate bonds in the marketplace directly or through a collective fund, ETF or investment trust? What am I missing? I think that the bonds held by the borrower are simply our loan security. We have no idea what the actual business of the borrower is yet, presumably not just bond purchasing. Same.. Underlying assets has to yield more than 8% to make it work, otherwise why would a borrower take a 50% LTV financing with 8% cost.. A bond with 8% would be junk I think, haven't heard investment grade bond at this level..
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I anticipated you may ask so i reached out to ablrate and ..... 
