j
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Penguins are very misunderstood!
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Post by j on Jan 9, 2015 19:34:31 GMT
Upcoming loan @ 11.5%, 60 months, £90k & 50% ltv. 4-6 weeks till expected drawdown
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bugs4me
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Post by bugs4me on Jan 9, 2015 21:14:41 GMT
Upcoming loan @ 11.5%, 60 months, £90k & 50% ltv. 4-6 weeks till expected drawdown Thanks j - old question or is it a new one since the revamp - just how to you get a slice of the action?
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Post by batchoy on Jan 9, 2015 21:28:25 GMT
Upcoming loan @ 11.5%, 60 months, £90k & 50% ltv. 4-6 weeks till expected drawdown Thanks j - old question or is it a new one since the revamp - just how to you get a slice of the action? You set a target for it, and then either turn off all your other targets and put funds in your MLIA to cover the target, or leave your targets as they are and add sufficient funds to the MLIA to cover all the targets, however even if you do add sufficient funds in your MLIA you are only likely to get a small portion of shrapnel.
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bugs4me
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Post by bugs4me on Jan 9, 2015 21:44:43 GMT
Thanks j - old question or is it a new one since the revamp - just how to you get a slice of the action? You set a target for it, and then either turn off all your other targets and put funds in your MLIA to cover the target, or leave your targets as they are and add sufficient funds to the MLIA to cover all the targets, however even if you do add sufficient funds in your MLIA you are only likely to get a small portion of shrapnel. Aware of what you say and I have set a target with another upcoming loan which has been upcoming for goodness knows how long. Doubt if I'll get any as all depends on the 'idle' funds sitting in MLIA when/if it goes live. There must be a way of streamlining this. AC seemed to have solved the delayed drawdown problem and replaced it with another. Maybe bring back SB perhaps.
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mikes1531
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Post by mikes1531 on Jan 9, 2015 21:46:34 GMT
...however even if you do add sufficient funds in your MLIA you are only likely to get a small portion of shrapnel. Surely that depends on whether the loan is going to be in high demand relative to its size and how quickly the underwriters exit. I expect this one will be hard to get.
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Post by Ton ⓉⓞⓃ on Jan 9, 2015 21:46:40 GMT
Thanks j - old question or is it a new one since the revamp - just how to you get a slice of the action? You set a target for it, and then either turn off all your other targets and put funds in your MLIA to cover the target, or leave your targets as they are and add sufficient funds to the MLIA to cover all the targets, however even if you do add sufficient funds in your MLIA you are only likely to get a small portion of shrapnel. I guess this is the loan where we'll find out how the system will distribute the parts in oversubscribed proposals. Will they be sizeable chunks or just remnants... I must say batchoy that was a very succinct description of how to buy units... I remember the last time you did that. 
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mikes1531
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Post by mikes1531 on Jan 9, 2015 21:53:33 GMT
I guess this is the loan where we'll find out how the system will distribute the parts in oversubscribed proposals. Will they be sizeable chunks or just remnants... Unless the underwriters release the whole amount at the very beginning, it's likely to be a lot of shrapnel.
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bugs4me
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Post by bugs4me on Jan 9, 2015 22:02:59 GMT
I guess this is the loan where we'll find out how the system will distribute the parts in oversubscribed proposals. Will they be sizeable chunks or just remnants... Unless the underwriters release the whole amount at the very beginning, it's likely to be a lot of shrapnel. And at 11.50% with a LTV of 50% if I was an UW I wouldn't be in a rush to offload. Meanwhile sitting with funds in MLIA waiting or probably hoping..........
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sl75
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Post by sl75 on Jan 9, 2015 22:27:30 GMT
You set a target for it, and then either turn off all your other targets and put funds in your MLIA to cover the target, or leave your targets as they are and add sufficient funds to the MLIA to cover all the targets, however even if you do add sufficient funds in your MLIA you are only likely to get a small portion of shrapnel. ... or indeed, just add enough to cover the amount you want to buy (plus your usual "float") - if some of it is diverted to buy a rare loan unit you've been unable to buy before, all the better, as a brand new loan is unlikely to be as difficult to increase your holding as an older loan you've been trying to buy for ages. Personally I still don't get why someone would set a target on a loan they DON'T want to buy in order to create this supposed "problem" anyway.
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Post by chris on Jan 9, 2015 22:36:28 GMT
You set a target for it, and then either turn off all your other targets and put funds in your MLIA to cover the target, or leave your targets as they are and add sufficient funds to the MLIA to cover all the targets, however even if you do add sufficient funds in your MLIA you are only likely to get a small portion of shrapnel. I guess this is the loan where we'll find out how the system will distribute the parts in oversubscribed proposals. Will they be sizeable chunks or just remnants... I must say batchoy that was a very succinct description of how to buy units... I remember the last time you did that. Same algorithm as currently in use on all sales. So if there's less than £1 per person interested (and in funds) then it's random allocation. If it's more then it starts by making sure everyone gets at least the same amount, with any people where that average split is above their target getting the balance distributed equally amongst the rest who want more. If you have three people wanting £20, £30, and £40 in a loan and £70 is then sold then: person 1 gets the £20 they want, and the other two get £25 each. If £80 is sold then it's £20, £30, £30. If you have a £100k loan and 200 people are interested, then each person will get at least £500 if they want it. Chances are you'd end up with quite a few investing less than that and a few getting considerably more, simply because that's their appetite and available funds.
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mikes1531
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Post by mikes1531 on Jan 9, 2015 22:58:35 GMT
And at 11.50% with a LTV of 50% if I was an UW I wouldn't be in a rush to offload. I can understand that. But haven't we been told the underwriters are under an obligation to offer a portion of their holding immediately upon drawdown?
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jan 10, 2015 3:26:23 GMT
Unless the underwriters release the whole amount at the very beginning, it's likely to be a lot of shrapnel. And at 11.50% with a LTV of 50% if I was an UW I wouldn't be in a rush to offload. Meanwhile sitting with funds in MLIA waiting or probably hoping.......... In the good ol' days this loan wouldn't have needed underwriting and lenders would have got 12% instead of 11.5%.
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j
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Penguins are very misunderstood!
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Post by j on Jan 10, 2015 6:09:32 GMT
...however even if you do add sufficient funds in your MLIA you are only likely to get a small portion of shrapnel. Surely that depends on whether the loan is going to be in high demand relative to its size and how quickly the underwriters exit. I expect this one will be hard to get. I wonder if UWs are obliged to sell part or all their holdings within a specified period? I'm sure this Q has been asked & answered before but, cannot remember the outcome!
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Post by batchoy on Jan 10, 2015 8:19:23 GMT
...however even if you do add sufficient funds in your MLIA you are only likely to get a small portion of shrapnel. Surely that depends on whether the loan is going to be in high demand relative to its size and how quickly the underwriters exit. I expect this one will be hard to get. It also depends on how much you are prepared to invest, on a loan like this I would have been looking at between £1k and £5k (though I haven't dug deeply as I am withdrawing from the platform so I may not have bid) and with shadow bid I would probably have got that type of investment. However even with £5k standing idle in my MLIA it is highly unlikely that I would get that size of investment, more likely given the way the system shares out loans and even with the UW placing the whole loan on the market in one go an individual share is going to be a sub £100 share.
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tonyr
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Post by tonyr on Jan 10, 2015 8:42:38 GMT
Surely that depends on whether the loan is going to be in high demand relative to its size and how quickly the underwriters exit. I expect this one will be hard to get. I wonder if UWs are obliged to sell part or all their holdings within a specified period? I'm sure this Q has been asked & answered before but, cannot remember the outcome! Underwriters can only retain up to 50% of their holding - or that's what the web site asks for so if it doesn't work now I assume it will do soon.
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