frequency of loans | P2P Independent Forum

valueinvestor123
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frequency of loans Feb 23, 2015 20:30:42 GMT

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Post by valueinvestor123 on Feb 23, 2015 20:30:42 GMT

Does anyone have a rough estimate on how many loans per week appear on Thincats, Assetz Capital, FS, (only >1k to invest loans), Rebuilding S and Ablrate?

My estimate:
Thincats: about 3-4 loans
AC: 1 loan?
FS: 2 loans?
Abl: 1 a month
Rebuilding: 3

Am I right in thinking that Thincats has the best flow of loans?
I am trying to work out the maximum amount to invest so that interest & capital can be recycled back without adding in new money at 1k per loan on average (except rebuilding: I wouldn't want to put in more than £400 per loan).

Based on the above, Thincats would need about 180k investments so that one is able to recycle into 3-4 loans per week (at 1k per loan).
AC: about 60k
FS: 50k (loans are for 6 months usually I think)
Rebuilding: 20k?
Abl: 12k?

It's very crude because durations vary. Has anyone worked it out?

It seems like Thincats is the only place that can be used for serious volume and still be diversified. Is this about right?

mrclondon
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frequency of loans Feb 23, 2015 21:05:44 GMT sqh and valueinvestor123 like this

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Post by mrclondon on Feb 23, 2015 21:05:44 GMT

The only comment that springs to mind immediately, is that I can only find 1 or 2 loans a month on TC that have security as strong as most (but not all, admittedly) AC loans. For me TC is the hardest platform on which to get a diversified portfolio of loans that pass my due dilligence.

Last Edit: Feb 23, 2015 21:06:47 GMT by mrclondon: improve English

Disclosure: I'm a shareholder in Assetz Capital Limited

valueinvestor123
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frequency of loans Feb 23, 2015 21:16:34 GMT

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Post by valueinvestor123 on Feb 23, 2015 21:16:34 GMT

Ah ok. Interesting. I thought since TC is supposed to be 'asset backed', then it goes without saying (or checking) that there will be security...
I guess there is security and there is security.
That would bring down the amount.

But I think it shows that the p2p and p2b area is not yet ripe for institutional money (unless it's ratesetter or zopa). I am not sure it ever will be since the number of small/medium businesses that would want to borrow without going to the market (= sell bonds) will always be relatively small

bracknellboy
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frequency of loans Feb 23, 2015 22:27:47 GMT

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Post by bracknellboy on Feb 23, 2015 22:27:47 GMT

Feb 23, 2015 21:05:44 GMT mrclondon said:

The only comment that springs to mind immediately, is that I can only find 1 or 2 loans a month on TC that have security as strong as most (but not all, admittedly) AC loans. For me TC is the hardest platform on which to get a diversified portfolio of loans that pass my due dilligence.

Bit harsh: what is there not to like about having a hangered Cessna as security ? Surely it couldn't turn out to be worth more as close to scrap than an airworthy asset ?

To be fair though, TC is a bit of a mixed bag when it comes to both types of loan and level of security behind them.

james

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frequency of loans Feb 23, 2015 22:48:01 GMT

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Post by james on Feb 23, 2015 22:48:01 GMT

For Ablrate better to use one per week. That's based on what's already been announced as expected in the next month and them being comfortable with a description of planning for 50 or more in the next year. Their new platform due in April should provide a forward view of future loans in the pipeline that would help with planning.