metoo
Member of DD Central
Posts: 555 
Likes: 432
|
Post by metoo on Mar 8, 2017 22:28:32 GMT
The 12 month term is very welcome, and another dose of realism after the previous 2 finances. Why was the last one only 8 months? They seem to be taking a more careful and realistic approach generally.
|
|
jayjay
Member of DD Central
Posts: 264
Likes: 116
|
Post by jayjay on Mar 9, 2017 9:18:27 GMT
The 12 month term is very welcome, and another dose of realism after the previous 2 finances. Why was the last one only 8 months? They seem to be taking a more careful and realistic approach generally. I fancy that the first tranche at least has very high chance of early repayment so I have bought some.
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Mar 9, 2017 14:01:33 GMT
What to do? Take tranche 1 for early repayment or tranche 7 for cash back? Perhaps both, given how long it will take.
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Mar 9, 2017 15:36:54 GMT
I've settled on tranche1 for early repayment. At Xmas I expect to see FC's tin shakers in the town centre trying to get a few pennies towards tranche 7.
|
|
andyp
Stubborn Yorkshireman from the rhubarb triangle
Posts: 150
Likes: 115
|
Post by andyp on Mar 22, 2017 14:34:19 GMT
Is this the first C grade property loan? Short Term Property Loan Drayton 1 (34565) replacing A grade Portsmouth loan - it's only 40 days late which is nothing for FC!
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Mar 22, 2017 14:52:47 GMT
Is this the first C grade property loan? Short Term Property Loan Drayton 1 (34565) replacing A grade Portsmouth loan - it's only 40 days late which is nothing for FC! 11% seems decidedly poor for a C. My "Advanced Autobid Settings" page appears to show the "Secondary Offer" minimum threshold for a C defaulted to 11.3% (at least, I don't think I've ever had reason to change it). IIUC, that means most Autobiddies will shun parts of this loan on the SM even at Par.
|
|
acky
Posts: 481
Likes: 262
|
Post by acky on Mar 22, 2017 14:58:56 GMT
Well I thought B-rated secured property loans were Bonkers - this is just Conkers!
|
|
andyp
Stubborn Yorkshireman from the rhubarb triangle
Posts: 150
Likes: 115
|
Post by andyp on Mar 22, 2017 14:59:33 GMT
Yes but even if the guy doesn't get planning permission the value of the loan is only 80% of the valuation of the two existing properties which could be sold in worst case. Somewhat more secure than the average C loan backed by a frequently valueless personal guarantee.
|
|
metoo
Member of DD Central
Posts: 555
Likes: 432
|
Post by metoo on Mar 22, 2017 15:54:13 GMT
11% seems decidedly poor for a C. My "Advanced Autobid Settings" page appears to show the "Secondary Offer" minimum threshold for a C defaulted to 11.3% (at least, I don't think I've ever had reason to change it). IIUC, that means most Autobiddies will shun parts of this loan on the SM even at Par. 11.3% seems to be the standard setting. There are several PM rates that won't sell at Par on the SM but this is the first for property.
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Mar 22, 2017 16:40:15 GMT
11.3% is just the average for C loans purchased, not a minimum. Basic Autobid will buy it at par. 11% OK with me, and elderly 10% loans have been euthanized.
|
|
metoo
Member of DD Central
Posts: 555
Likes: 432
|
Post by metoo on Mar 22, 2017 16:50:02 GMT
11.3% is just the average for C loans purchased, not a minimum. Basic Autobid will buy it at par. 11% OK with me, and elderly 10% loans have been euthanized. Autobid has 11.3% as the default setting for the Secondary Offer Rate for C Risk Band loan parts, " the minimum gross offer rate you would like to buy loan parts at from other investors".
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Mar 22, 2017 17:25:55 GMT
11.3% is just the average for C loans purchased, not a minimum. Basic Autobid will buy it at par. 11% OK with me, and elderly 10% loans have been euthanized. Autobid has 11.3% as the default setting for the Secondary Offer Rate for C Risk Band loan parts, " the minimum gross offer rate you would like to buy loan parts at from other investors". What you say sounds reasonable and I may be misremembering something. I am going to have to accept your correction. Assuming FC's words are accurate, the interest rate for a 6 month C loan is currently 11%, SME or property, and it seems odd that the default setting would be above the PM rates. Maybe the default setting on new accounts is different, and the ones you have looked at are older accounts? In any case these are advanced settings, and if you switch on basic Autobid, from the Autobid page, then it will buy any part offered at par, just like on the PM, without reference to the interest rate. That was confirmed in this forum a short while back, by a member who had it from FC. It makes sense that FC should provide liquidity for older parts in this way down to 4%, but they keep it quiet. To use the SM settings you have to turn on Autobid from the advanced page and then it uses the rates you set and buys at par or a discount. I have purchased a few £k of this 11% C loan and intend to sell all of it within five months. So we will find out.
|
|
r00lish67
Member of DD Central
Posts: 2,692
Likes: 4,048
|
Post by r00lish67 on Mar 22, 2017 18:10:25 GMT
Anyone for a nibble of Property Development H***n 1, A+ at 9%, 12 months? Given those parameters, it should sell reasonably well on the SM as required I'd have thought, although again it seems to have quite a labored history. Unless I'm missing something, as I haven't been involved in these ones to date.
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Mar 22, 2017 19:47:07 GMT
All you are missing is that 9% minus 1% minus 0.25% equals 7.75%. Nothing less than 10% gross for me.
|
|
metoo
Member of DD Central
Posts: 555
Likes: 432
|
Post by metoo on Mar 22, 2017 20:15:30 GMT
Autobid has 11.3% as the default setting for the Secondary Offer Rate for C Risk Band loan parts, " the minimum gross offer rate you would like to buy loan parts at from other investors". What you say sounds reasonable and I may be misremembering something. I am going to have to accept your correction. Assuming FC's words are accurate, the interest rate for a 6 month C loan is currently 11%, SME or property, and it seems odd that the default setting would be above the PM rates. Maybe the default setting on new accounts is different, and the ones you have looked at are older accounts? In any case these are advanced settings, and if you switch on basic Autobid, from the Autobid page, then it will buy any part offered at par, just like on the PM, without reference to the interest rate. That was confirmed in this forum a short while back, by a member who had it from FC. It makes sense that FC should provide liquidity for older parts in this way down to 4%, but they keep it quiet. To use the SM settings you have to turn on Autobid from the advanced page and then it uses the rates you set and buys at par or a discount. I have purchased a few £k of this 11% C loan and intend to sell all of it within five months. So we will find out.
It will be interesting to see how it goes when you sell. Probably you can sell at par even if Autobid doesn't take it. There will not be too much on the market I expect. The assurances FC customer services give are not necessarily correct. I always assumed the default settings were the same with, or without, Advanced Settings selected. On the other hand presumably Autosale always works, which suggests the information customer services gave, and your interpretation, are both correct.
|
|
