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Post by df on Aug 27, 2021 17:09:51 GMT
Anticipated launch early next week.
"First ranking security and on drawdown each property has a government backed social housing long term lease. These loan opportunities therefore will allow Ablrate Lenders a different risk profile to the majority of loans on the platform. This will be reflected in the interest rate".
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Post by Ace on Aug 27, 2021 21:49:40 GMT
Will be interesting to see to what extent the risk profile is reflected in the platform fees to the borrower.
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blender
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Post by blender on Aug 28, 2021 21:06:33 GMT
Will be interesting to see to what extent the risk profile is reflected in the platform fees to the borrower. I will be very surprised if the fees go below 0.33% pm.
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Post by Badly Drawn Stickman on Aug 30, 2021 8:55:27 GMT
The 'trailer' was remarkably vague on the key point. I have a strange feeling 8% would be the figure that represents 'reflected'. In my case that would bring it into direct competition with an area I have well covered elsewhere on property.
I am already considerably reducing my platform limit on ablrate due to concerns about the future viability for me of the secondary market. Add the growing lack of worthwhile interaction and updates and unless I am wrong in my guess don't think I will be personally getting involved with these.
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blender
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Post by blender on Aug 30, 2021 11:15:41 GMT
If we are speaking of the reflection of the risk profile in the lender fees, rather than the borrower fees, then we could be in new territory below 8%. Add my predicted minimum platform fee as equivalent of 4% pa to lenders 8% and you get 12% to the borrower, plus probably an upfront fee equivalent to Ablrate's costs and disbursements in evaluation and set up. Maybe too much for a 'safe' first charge loan.
We shall see. I hope it works, and that we may get many late repayments tomorrow to place on it.
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Post by darren on Aug 31, 2021 11:43:57 GMT
For some reason 8% was the figure that immediately popped into my head, although looking back this is probably due to the 2/8 update email which seems to be teasing something else. In the current economic climate a 'safe' loan at that level of return would get a thumbs up from me.
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archie
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Post by archie on Aug 31, 2021 13:19:20 GMT
For some reason 8% was the figure that immediately popped into my head, although looking back this is probably due to the 2/8 update email which seems to be teasing something else. In the current economic climate a 'safe' loan at that level of return would get a thumbs up from me. 9% 
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Post by Ace on Aug 31, 2021 13:29:02 GMT
Nicely timed to keep the repayments from #147 on the platform.
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Post by ladywhitenap on Aug 31, 2021 14:29:13 GMT
Why the references to 8% above? my email says 9%
I'd possibly have a punt but virtually out of cash unless some overdue repayments crawl in before 2pm tomorrow.
I do like the management style of PeeOne and very prompt repayments.
LW
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Post by Ace on Aug 31, 2021 14:53:57 GMT
Why the references to 8% above? my email says 9% I'd possibly have a punt but virtually out of cash unless some overdue repayments crawl in before 2pm tomorrow. I do like the management style of PeeOne and very prompt repayments. LW The bearded one mentioned some new loans that would be 8% in his Loan Updates email of 2nd Aug. It doesn't look like this was one of the loans he was referring to.
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Post by ladywhitenap on Aug 31, 2021 15:02:47 GMT
Why the references to 8% above? my email says 9% I'd possibly have a punt but virtually out of cash unless some overdue repayments crawl in before 2pm tomorrow. I do like the management style of PeeOne and very prompt repayments. LW The bearded one mentioned some new loans that would be 8% in his Loan Updates email of 2nd Aug. It doesn't look like this was one of the loans he was referring to. Or just maybe the bearded one over delivered by 1% this time round??  LW
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Post by Ace on Aug 31, 2021 15:06:54 GMT
The bearded one mentioned some new loans that would be 8% in his Loan Updates email of 2nd Aug. It doesn't look like this was one of the loans he was referring to. Or just maybe the bearded one over delivered by 1% this time round?? LW It seems unlikely as the 8% loans were going to have listed bonds as their security, which doesn't seem to be the case here.
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blender
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Post by blender on Aug 31, 2021 15:09:31 GMT
I assume this is 9% because it is short-term. Let's see the detail.
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Post by df on Aug 31, 2021 15:56:30 GMT
I assume this is 9% because it is short-term. Let's see the detail. I assume that this is the rate for this stream of loans. Apart from a couple of early loans (APF, S**cr****) ABL tend to have the same rate per borrower. We'll have to see the details, but by the sound of it I'm in. 9% is a reasonable rate for the outlined security (imo).
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withnell
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Post by withnell on Sept 1, 2021 10:29:25 GMT
I assume this is 9% because it is short-term. Let's see the detail. I assume that this is the rate for this stream of loans. Apart from a couple of early loans (APF, S**cr****) ABL tend to have the same rate per borrower. We'll have to see the details, but by the sound of it I'm in. 9% is a reasonable rate for the outlined security (imo). I agree that 9% is a reasonable rate, but given the way that the SM tends to perform (eg anything under 12% is at a discount) I think this might struggle to fill. I'll put in a bit in support of this kind of diversification by the platform, but would expect to sweep up a larger holding after launch at 97-98%. Be interesting to see if Ablrate could issue at non-par, as is the case in the bond markets?
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