paulgul
Member of DD Central
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Post by paulgul on Mar 9, 2015 16:54:01 GMT
I'm new to this and also must be a bit dense, looking at the secondary market, take for example deal 217-39. A person is offering one unit of £100 with a 12% interest rate for sale at £113.
According to the page there are 14 interest payments left (on a 17 month loan) which will give me a return of about £14 plus my £100 capital - ie £1 profit - I must be missing something, could someone please explain in simple language how all of this works
Thanks, Paul
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SteveT
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Post by SteveT on Mar 9, 2015 17:15:35 GMT
Funnily enough I raised a "Support Ticket" yesterday to ask Ablrate to explain the very same thing to me. Seller wanting a price of £106 for a loan part that is due to make 14 further monthly interest payments at 12% per annum on £100 (so roughly £14 interest in total) and then return the capital sum of £100, but the "Annual Interest Rate" is shown as 11.32%?? By my reckoning, it would be more like 6% once I factor in the £6 loss between the £106 price and the £100 returned at the end of the loan.
No response yet ...
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paulgul
Member of DD Central
Posts: 401
Likes: 92
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Post by paulgul on Mar 9, 2015 17:45:11 GMT
Glad it's not me then  Perhaps the rep from Ablrate will post an answer |
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Post by ablrateandy on Mar 10, 2015 12:12:05 GMT
Hi guys,
Sorry - we have been doing some work on the current site and there seems to be a yield glitch as a result of a weekend back end change. We are going to take the yields off temporarily whilst it gets resolved but if anyone wants to mail me I will happily do the calc manually for you before it gets resolved.
And this is why we are changing developers on the new site.....
Andy
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Perhaps the rep from Ablrate will post an answer
