spockie
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Post by spockie on Aug 21, 2014 14:52:33 GMT
Some Wrexham and Liverpool available as well as the usual offerings.
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j
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Penguins are very misunderstood!
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Post by j on Aug 27, 2014 21:41:11 GMT
Some Sth Manc units available
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spockie
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Post by spockie on Aug 27, 2014 21:49:26 GMT
Some Sth Manc units available All gone!
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Post by Ton ⓉⓞⓃ on Aug 27, 2014 21:54:49 GMT
Some Sth Manc units available I checked within a minute of your post and they were already gone. There's so much 'stuff' on the AM, 15 other loans, that it's hard to find items quickly. I couldn't remember when that 2nd auction was done and thus if it was in the middle or near the top.
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shimself
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Post by shimself on Aug 29, 2014 11:57:24 GMT
i.e. you are effectively paid to the last day you fully held those units, so if you sold a unit say today, you'll be paid up to & including accrued interest yesterday. Feel free guys to correct if wrong. That is correct. We felt it fairer that the seller takes the default risk for the interest up to the point of sale rather than transferring all that risk on to the buyer which is the more traditional way of doing things. I thought in the first place you had inadvertently swapped the words risk and interest, but perhaps not Just so I'm clear I think it's like this: £100 principal of a loan is sold on the SM. A few weeks (or indeed months) interest is due at the point of sale, say £1 What happens when the borrower makes their next payment is that the seller gets their £1 and the buyer gets the rest If there is a subsequent default before the next payment is made, and lets say there is ultimately a 50% recovery, then the seller gets 50p and the buyer gets £50 plus 50% of interest earned after the sale. Have I got it? Thanks
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kermie
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Post by kermie on Aug 29, 2014 12:04:27 GMT
Some Sth Manc units available I checked within a minute of your post and they were already gone. There's so much 'stuff' on the AM, 15 other loans, that it's hard to find items quickly. I couldn't remember when that 2nd auction was done and thus if it was in the middle or near the top. I've been selling down on Sth Manc in the past day or two in a few small lumps - and it's all gone to AI instantly, or within 10-15 minutes to other buyers. Still surprised it went so easily.
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Post by chris on Aug 29, 2014 12:08:31 GMT
That is correct. We felt it fairer that the seller takes the default risk for the interest up to the point of sale rather than transferring all that risk on to the buyer which is the more traditional way of doing things. I thought in the first place you had inadvertently swapped the words risk and interest, but perhaps not Just so I'm clear I think it's like this: £100 principal of a loan is sold on the SM. A few weeks (or indeed months) interest is due at the point of sale, say £1 What happens when the borrower makes their next payment is that the seller gets their £1 and the buyer gets the rest If there is a subsequent default before the next payment is made, and lets say there is ultimately a 50% recovery, then the seller gets 50p and the buyer gets £50 plus 50% of interest earned after the sale. Have I got it? Thanks I believe so. Other platforms ask the buyer to pay the accrued interest to the seller, thus taking a risk that the borrower will make the next payment. If they don't then the buyer is out of pocket for the principal amount but also any accrued interest they paid up front to the seller. On Assetz Capital the buyer just pays the principal amount to the seller, less any discount applied. The next time a repayment is made the interest portion is reduced to the buyer to cover only the interest accrued whilst they held the loan unit. The system distributes the rest of the interest payment back to the seller (or multiple sellers if the loan unit was traded several times). My understanding is that in a recovery situation all interest owed is treated equally be it deferred or owed to the current holder of the loan unit, if the recovery only covered half the interest owed then both the buyer and seller would get 50% of what is owed to them.
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j
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Penguins are very misunderstood!
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Post by j on Aug 30, 2014 16:53:50 GMT
More Sth Manc & Yorks, amongst the usual suspects
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j
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Penguins are very misunderstood!
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Post by j on Aug 31, 2014 22:21:48 GMT
Various oddments on AM currently listed
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mikes1531
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Post by mikes1531 on Sept 1, 2014 19:19:16 GMT
I think it's like this: £100 principal of a loan is sold on the SM. A few weeks (or indeed months) interest is due at the point of sale, say £1 If there is a subsequent default before the next payment is made, and lets say there is ultimately a 50% recovery, then the seller gets 50p and the buyer gets £50 plus 50% of interest earned after the sale. Have I got it? My understanding is that in a recovery situation all interest owed is treated equally be it deferred or owed to the current holder of the loan unit, if the recovery only covered half the interest owed then both the buyer and seller would get 50% of what is owed to them. ought to know, but I'm not convinced that the answer given for the 50% 'recovery' situation is correct. AIUI, capital return gets higher priority than interest payment, so if the asset sale doesn't raise enough to cover a complete capital repayment then there would be no payment of accrued interest at all. In that case, the selling lender would lose their right to their accrued interest, and the buyer would end up with a tad more than 50p in the £ of capital return but no interest return at all. [Re-reading chris's comment, perhaps he was addressing the situation where the recovery was enough to repay all outstanding capital but only 50% of accrued interest, whereas I think shimself's question related to a situation where the recovery was only enough to cover 50% of (capital + accrued interest).] The situation would be more complicated in a case of interest retained at loan drawdown, but there's unlikely to be any of that left in most cases of loans where the borrower defaults, although that situation does arise in the An****ey case because AC's payment handling system was unable to pay out the last scheduled month's interest because the capital repayment was not made at the loan's maturity.
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bg
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Post by bg on Sept 3, 2014 16:51:12 GMT
Cent Lon (115) just drawndown and £60k on the aftermarket..
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mikes1531
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Post by mikes1531 on Sept 3, 2014 16:58:51 GMT
Cent Lon (115) just drawndown and £60k on the aftermarket.. The amount on the Aftermarket is the amount the underwriters are holding ... plus £100. I wonder how long it will take before all the underwriter units are snapped up.
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star dust
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Post by star dust on Sept 3, 2014 18:18:20 GMT
Some time by the looks of it! Still most of it there. I've just looked as I had a very small AI mandate on this, and to my surprise it actually leapt into action for me - first time in what seems like months  . |
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kermie
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Post by kermie on Sept 3, 2014 18:38:34 GMT
Some time by the looks of it! Still most of it there. I've just looked as I had a very small AI mandate on this, and to my surprise it actually leapt into action for me - first time in what seems like months . Hmm - with the large bridging loans being redeemed soon, and the reasonably favourable rate/security compared to others, I don't think it will take that long, actually. I would also suggest there is a little more appetite for the smaller loans such as this because lenders are likely to see better liquidity (because there's no significant underwriting to compete with on the AM).
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star dust
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Post by star dust on Sept 3, 2014 19:51:17 GMT
I would also suggest there is a little more appetite for the smaller loans such as this because lenders are likely to see better liquidity (because there's no significant underwriting to compete with on the AM). Well I'd agree with that. However, either people don't have funds or there's not much AI been set up for it, and I'd still say its barely moving though compared to some other places I could mention........
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