adrianc
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Post by adrianc on Mar 10, 2015 8:04:12 GMT
Two of the property loans are getting very close to their closing time without being filled.
11269, 14mo interest only, 8% + .5%, £300k fourth tranche - 9% short with three hours to go
11277, 24mo interest only, 8% + .5%, £280k second tranche - a whopping 26% short with five hours to go. This is the second half of the one that started off as a £560k 7%...
Will their own Folding Container get an outing?
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coop
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Post by coop on Mar 10, 2015 8:39:51 GMT
This is better than watching a soap opera! £20 bids first for max liquidity followed by 100s as they run out of time again  |
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baldpate
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Post by baldpate on Mar 10, 2015 9:15:41 GMT
Both these are on my watch list, just to see how they pan out.
IMO, the first one, 11269, is a dead cert for propping up if necessary - they've probably left it a bit too late for the 'split & relist' approach. FC are fully committed to this project, so I don't see how they can walk away. However, this tranche will bring funding to only something over 1/3 of total required - so the really interesting question is how they will deal with the remaining tranches. One of the questions in Q&A is why cashback of only 0.5% when the first tranche was 2% : do read FC's reply if you want a giggle!
11277 looks more problematic for FC. I doubt they'll be happy to shell out big money to prop this one up, but since the first tranche of the split seems to have already been drawn, it's not clear what option they would have.
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blender
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Post by blender on Mar 10, 2015 9:33:35 GMT
Both these are on my watch list, just to see how they pan out. ... 11277 looks more problematic for FC. I doubt they'll be happy to shell out big money to prop this one up, but since the first tranche of the split seems to have already been drawn, it's not clear what option they would have. Agreed this looks like an embarrassment for the property team. Didn't fly as one loan and is going to need 'solutions' money to complete. It is a straight refinancing of a commercial mortgage for a landlord, with the exit being a further refinance in two years. One wonders why an A+ borrowers does not choose to repay any of the principal from the rent - this is not a development or investment, just a straight re-mortgage of commercial property. Difficult territory for FC lenders.
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coop
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Post by coop on Mar 10, 2015 11:00:08 GMT
Just dropped 5 grand in £100 bids on 11269... I think they're hoping to limp over the line with little or no more funding from fcpf
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coop
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Post by coop on Mar 10, 2015 11:42:17 GMT
Took 6 grand to see them over the line in the end - they'll need more for the next one
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bloodycat
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Post by bloodycat on Mar 10, 2015 12:17:25 GMT
They do seem to be struggling with a lot of these commercial mortgages, even though there is very little else worth investing in either.
I see 10716 was rejected as it was over 160K short of the 600K requested even with 0.5% cashback, along with a couple of others over the last few weeks.
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oldgrumpy
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Post by oldgrumpy on Mar 10, 2015 12:39:28 GMT
It's purely a matter of Figgy Chimps pushing lenders to the lowest rate the market will stand so that more borrowers see it as the cheapest place to get a loan. Good strategy. Unfortunately Foggy Chumps (in their wisdom) don't know when to stop squeezing, and push rates too low, so lenders say, "goodbye!"
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jonno
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nil satis nisi optimum
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Post by jonno on Mar 10, 2015 12:44:41 GMT
Fictitious Calculators stopped looking after lenders ages ago IMO.
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coop
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Post by coop on Mar 10, 2015 12:48:10 GMT
Yet to make an appearance for 11277; 62.5k to go and 28 minutes...
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baldpate
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Post by baldpate on Mar 10, 2015 13:24:51 GMT
11277 - unsupported by FC - failed to fill - bid monies returned. I'd love to hear the discussions with the borrower!
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blender
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Post by blender on Mar 10, 2015 13:40:41 GMT
11277 - unsupported by FC - failed to fill - bid monies returned. I'd love to hear the discussions with the borrower! Wow! Really not wanted on the Financial Contingency balance sheet. Will be instructive to see what they do. Does the borrower now have half the money at 8% instead of half the money at 7% (when it was one loan request)? Not very satisfactory position for the borrower. Egg on face. Options are to re-list with a cash back or higher interest rate - or keep listing half the outstanding sum required ad infinitum.
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TitoPuente
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Post by TitoPuente on Mar 10, 2015 13:45:48 GMT
The logical solution to these fiascoes would be to scrap the fixed interest rate and let the market decide the pricing.
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Post by grumbledore on Mar 10, 2015 13:55:55 GMT
I'm almost tempted to invest in more of the property loans since there's nothing much better to invest in. Or maybe I'll take the cash elsewhere.
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jonno
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nil satis nisi optimum
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Post by jonno on Mar 10, 2015 14:23:00 GMT
I really can't believe you guys are still investing with Fouling Carcass  |
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