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Post by 169tigger on Oct 19, 2022 18:44:36 GMT
Perhaps it's time to take advantage of the SM,,those 1st charge loans with discounts are temping..very.
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Greenwood2
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Post by Greenwood2 on Oct 19, 2022 19:22:41 GMT
Perhaps it's time to take advantage of the SM,,those 1st charge loans with discounts are temping..very. None left! And I think they were all 2nd charges?
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michaelc
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Post by michaelc on Oct 20, 2022 19:10:35 GMT
Perhaps it's time to take advantage of the SM,,those 1st charge loans with discounts are temping..very. What is the purpose of this temping post ? Whatever it is, I just can't wait to buy more and tell others too. Buy buy buy!
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Greenwood2
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Post by Greenwood2 on Oct 21, 2022 12:58:10 GMT
A few more 1% discounts on the SM, but rates on the PM seem to be going up as well one at over 10% but didn't last long.
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Post by davefoz on Oct 21, 2022 14:18:18 GMT
A few more 1% discounts on the SM, but rates on the PM seem to be going up as well one at over 10% but didn't last long. Not there now and I can’t add anything as they appear to limit the number of sales slots on the SM
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Post by davefoz on Oct 21, 2022 14:19:19 GMT
A few more 1% discounts on the SM, but rates on the PM seem to be going up as well one at over 10% but didn't last long. Not there now and I can’t add anything as they appear to limit the number of sales slots on the SM
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Greenwood2
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Post by Greenwood2 on Oct 21, 2022 16:59:13 GMT
A few more 1% discounts on the SM, but rates on the PM seem to be going up as well one at over 10% but didn't last long. Not there now and I can’t add anything as they appear to limit the number of sales slots on the SM There were three earlier, but not there now. I've seen more loans on the SM in the past so I'm not sure why you can't list. They used to have a limit on numbers on page which sometimes meant you couldn't see all the loans unless you changed page but that seems to have gone maybe something to do with that? I would ask but past 5pm on a Friday...
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Post by somo on Oct 26, 2022 14:38:46 GMT
Not there now and I can’t add anything as they appear to limit the number of sales slots on the SM There were three earlier, but not there now. I've seen more loans on the SM in the past so I'm not sure why you can't list. They used to have a limit on numbers on page which sometimes meant you couldn't see all the loans unless you changed page but that seems to have gone maybe something to do with that? I would ask but past 5pm on a Friday...
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Greenwood2
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Post by Greenwood2 on Oct 26, 2022 15:53:37 GMT
There were three earlier, but not there now. I've seen more loans on the SM in the past so I'm not sure why you can't list. They used to have a limit on numbers on page which sometimes meant you couldn't see all the loans unless you changed page but that seems to have gone maybe something to do with that? I would ask but past 5pm on a Friday... We have restricted the number of viewable secondary market loans to 10. Typically the secondary market will be utilised by investors for (a) releasing some capital invested, perhaps for another investment opportunity elsewhere or a specific project/acquisition. Or, (b) where it is an investors strategy to avoid any income voids by selling their loan parts maybe a couple of months before the loan term. Both of these are absolutely fine and we do what we can to accommodate this where possible. Consequent of our recent increase in interest rates on the PM there has been a sharp increase in the numbers of investors looking to rate swap... disposing of their lower rate loans (many with considerable unexpired terms) to take advantage of the higher rate PM offering. There are of course no rules which would disallow this strategy, however, this has the effect of clogging the SM with less attractive low rate loan parts (where the sellers interest income is suspended) and which causes frustration for investors who employ the (b) strategy above, or those who have an urgent capital requirement. Another adverse impact is that high volume of SM availability causes concern with investors who may not fully understand how the SM reacts to changes in the market, situations of national crisis (you will recall we have 99+ SM loans for sale during Covid). To conclude... we are aware that current functionality and restrictions on volume may be causing frustration... we are looking at one solution suggested by an investor today that we apply a time-out to SM loans if they do not sell within say 3 days. We will look at this a possibility. If anyone has any questions please feel free to message me directly or email at simon.cottrell@somo.co.uk. Thank you all for your continued support If there are several SM sales for the same loan could these be 'stacked' so that only one was visible, so that the 10 loans visible were at least all different?
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SteveT
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Post by SteveT on Oct 27, 2022 11:20:46 GMT
We have restricted the number of viewable secondary market loans to 10. Typically the secondary market will be utilised by investors for (a) releasing some capital invested, perhaps for another investment opportunity elsewhere or a specific project/acquisition. Or, (b) where it is an investors strategy to avoid any income voids by selling their loan parts maybe a couple of months before the loan term. Both of these are absolutely fine and we do what we can to accommodate this where possible. Consequent of our recent increase in interest rates on the PM there has been a sharp increase in the numbers of investors looking to rate swap... disposing of their lower rate loans (many with considerable unexpired terms) to take advantage of the higher rate PM offering. There are of course no rules which would disallow this strategy, however, this has the effect of clogging the SM with less attractive low rate loan parts (where the sellers interest income is suspended) and which causes frustration for investors who employ the (b) strategy above, or those who have an urgent capital requirement. Another adverse impact is that high volume of SM availability causes concern with investors who may not fully understand how the SM reacts to changes in the market, situations of national crisis (you will recall we have 99+ SM loans for sale during Covid). To conclude... we are aware that current functionality and restrictions on volume may be causing frustration... we are looking at one solution suggested by an investor today that we apply a time-out to SM loans if they do not sell within say 3 days. We will look at this a possibility. If anyone has any questions please feel free to message me directly or email at simon.cottrell@somo.co.uk. Thank you all for your continued support If there are several SM sales for the same loan could these be 'stacked' so that only one was visible, so that the 10 loans visible were at least all different? With biggest offered discount (if any) at the top of the stack, then “First in, first out” where discount is zero / the same
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victors
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Post by victors on Oct 27, 2022 11:46:36 GMT
So I'm still able to put my loans up for sale, but they just won't appear in the Secondary Sales listing.
What's the point then. Nobody is going to buy it and I'm earning no interest.
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Post by davefoz on Oct 27, 2022 12:15:27 GMT
There were three earlier, but not there now. I've seen more loans on the SM in the past so I'm not sure why you can't list. They used to have a limit on numbers on page which sometimes meant you couldn't see all the loans unless you changed page but that seems to have gone maybe something to do with that? I would ask but past 5pm on a Friday... We have restricted the number of viewable secondary market loans to 10. Typically the secondary market will be utilised by investors for (a) releasing some capital invested, perhaps for another investment opportunity elsewhere or a specific project/acquisition. Or, (b) where it is an investors strategy to avoid any income voids by selling their loan parts maybe a couple of months before the loan term. Both of these are absolutely fine and we do what we can to accommodate this where possible. Consequent of our recent increase in interest rates on the PM there has been a sharp increase in the numbers of investors looking to rate swap... disposing of their lower rate loans (many with considerable unexpired terms) to take advantage of the higher rate PM offering. There are of course no rules which would disallow this strategy, however, this has the effect of clogging the SM with less attractive low rate loan parts (where the sellers interest income is suspended) and which causes frustration for investors who employ the (b) strategy above, or those who have an urgent capital requirement. Another adverse impact is that high volume of SM availability causes concern with investors who may not fully understand how the SM reacts to changes in the market, situations of national crisis (you will recall we have 99+ SM loans for sale during Covid). To conclude... we are aware that current functionality and restrictions on volume may be causing frustration... we are looking at one solution suggested by an investor today that we apply a time-out to SM loans if they do not sell within say 3 days. We will look at this a possibility. If anyone has any questions please feel free to message me directly or email at simon.cottrell@somo.co.uk. Thank you all for your continued support Thankyou for the response - one other way in which you could possibly address the issue as regards liquidity; is to rigidly impose your hitherto ambiguous policy as regards redemption dates & default interest. As a matter of interest - Can you confirm how many loans are presently ‘out of term’ and how many of those are attracting default interest ?
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Greenwood2
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Post by Greenwood2 on Oct 27, 2022 13:19:22 GMT
So I'm still able to put my loans up for sale, but they just won't appear in the Secondary Sales listing. What's the point then. Nobody is going to buy it and I'm earning no interest. I assume there is an invisible queue to join the SM as loans get bought or cancelled. If that is the case it would be nice to know how far you are off the bottom of the visible! To decide if it's worth bothering.
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Post by Ace on Oct 27, 2022 13:49:52 GMT
Despite the explanation, I completely fail to understand why the number of SM items is restricted in any way. If there's a hundred loans on sale then just display them all (paged if necessary).
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Post by somo on Oct 27, 2022 14:37:09 GMT
Hi, for clarification. The SM is restricted to 10 loan sales per investor. We occasionally put this restriction on to try and be fair to allow large investors the ability sell a large block of loans but also allow smaller investors adequate visibility who may only be selling one. We appreciate that there maybe other ways to help smaller investors gain visibility if a large investor is selling (such as time sensitive listings, or displaying the higher discounted rated first or only allow one Loan ID per SM with the other loans from that Loan ID to wait in a queue). We are reviewing all of these ideas and will feedback if any changes are made. There are at time of writing 24 loans parts for sale on the SM and 24 loans parts displayed on the platform (ie no investor is selling more than 10). The present loans for sale on the SM all carry lower rates of return than the new loans being offered on the PM. Therefore, we would like to highlight to investors, that the loans for sale on the SM will likely take longer to sell (if at all) than they have historically. We would expect this trend to continue for as long as new loans have a higher rate of return than SM loans. That being said, some investors like to purchase loans that are close to the term end as it as this stage that loans are likely to go over term and later, into default. It is noted that some investors would like clarity on when the default rates will be applied. I have raised this point with the board and it is our intention to inform investors in the next CEO newsletter (scheduled for December) and provide further clarity as to when and why default rates will be applied. However, in short, default rates are applied when the loan moves to Default Proceedings Stage 1 (this is when the loan term is up and the borrower does not have a realistic exit plan and or the borrower is failing to service a loan). There are instances where the borrower may have not repaid the loan on maturation but they continue to service the monthly interest, in such scenarios we may forgo the default rates in order to help the borrower maintain their commitments and or refinance and or keep then borrower "on side". (FYI - at present, for all overdue loans where interest is not being serviced they are all attracting the default rate).
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