coop
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Post by coop on Apr 7, 2015 13:53:13 GMT
12087 would be my preference; 9% +1%CB trumps 10% on a 12 month loan; it's only the LTV which is worse.
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SteveT
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Post by SteveT on Apr 7, 2015 14:07:21 GMT
My thinking was really that, since 12087 is the 6th tranche of "Tewkesbury Lock-ups", the vast majority of Autobidders will already own their allocated slice and so be counted out. I agree that, on the face of it, 9% + 1%CB marginally trumps 10% for a manual bidder.
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Post by loanstar on Apr 7, 2015 14:40:34 GMT
The security and the purpose of the loans is very different. The London loan is a refinance package and so final repayment will depend on another single lender being found. The Tewkesbury loan is for a residential redevelopment. Repayment will depend on buyers being found for the flats. As a matter of interest I visited the site just over a month ago although only inspected from outside. The location is good, being close to the abbey and views over the cricket ground. I note that no mention is made of flats being sold off plan, unlike some of the other development funded by Fishing Cats.
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Post by longjohn on Apr 9, 2015 19:07:08 GMT
12078 is fully funded and 12087 is still only 45% funded so the general preference appears to be headline interest rather than cashback now.
John
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Post by GSV3MIaC on Apr 9, 2015 19:11:56 GMT
I suspect, but don't know, that autobid takes no account of cashback, so anyone setting an autobid threshold of 9% for an A would not bid on a 12 month 8% A with 1% cashback. It is also affected (a lot) by whether it is tranche 1, or something later (by which time a lot of autobidders will be saturated, regardless of how good the deal has become).
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eddie
i have put up with a great deal from the likes of you people, a very great deal....
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Post by eddie on Apr 9, 2015 19:25:00 GMT
I suspect, but don't know, that autobid takes no account of cashback, so anyone setting an autobid threshold of 9% for an A would not bid on a 12 month 8% A with 1% cashback. It is also affected (a lot) by whether it is tranche 1, or something later (by which time a lot of autobidders will be saturated, regardless of how good the deal has become). hells gearbox. how is it possible to know all this
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Post by GSV3MIaC on Apr 9, 2015 19:33:56 GMT
'Know' is not possible, but 'deduce' can be done by watching how the black box which is autobid behaves over time and various loan offerings. Of course FC turn the knobs and confuse things sometimes. There is, however, as well known / hardwired rule which says that autobid won't put more than 0.5% of 1% of your funds into any one company .. tranches 2->N of a loan are the same company, so if you bought into tranche 1 at the maximum permitted amount (and maybe 'at all?' Autobid is historically stupid about topping up an existing exposure, at least on the SM) you won't get put in for the later ones (by autobid - Manually you can do what you like .. hence the 1% or 2% incentives to get over exposed).
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Post by thesnoop on Apr 13, 2015 17:48:03 GMT
FYI.
12195 listed an hour ago , 8% over 10 months with 2% CB, filling up fairly quickly.
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eddie
i have put up with a great deal from the likes of you people, a very great deal....
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Post by eddie on Apr 13, 2015 17:59:29 GMT
'Know' is not possible, but 'deduce' can be done by watching how the black box which is autobid behaves over time and various loan offerings. Of course FC turn the knobs and confuse things sometimes. There is, however, as well known / hardwired rule which says that autobid won't put more than 0.5% of 1% of your funds into any one company .. tranches 2->N of a loan are the same company, so if you bought into tranche 1 at the maximum permitted amount (and maybe 'at all?' Autobid is historically stupid about topping up an existing exposure, at least on the SM) you won't get put in for the later ones (by autobid - Manually you can do what you like .. hence the 1% or 2% incentives to get over exposed). great i learn something every day.
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mv
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Post by mv on Apr 13, 2015 19:15:13 GMT
FYI. 12195 listed an hour ago , 8% over 10 months with 2% CB, filling up fairly quickly. I have a newbie question...Looking at the first tranche of this loan which was offered with 1% cb there are 703 loan parts for sale starting with a premium of -0.9%. Is there a logical reason why there are hundreds of loan parts with a significant premium added? Does anyone seriously think that some people will buy this at +3% and a predicted rate of 4.5%? Is there some sort of glitch in autobid that means some people do this? How do the more experienced users of FC feel about the latest offering with 2% cb? Best wishes, Matt
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fasty
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Post by fasty on Apr 13, 2015 19:31:44 GMT
FYI. 12195 listed an hour ago , 8% over 10 months with 2% CB, filling up fairly quickly. I have a newbie question...Looking at the first tranche of this loan which was offered with 1% cb there are 703 loan parts for sale starting with a premium of -0.9%. Is there a logical reason why there are hundreds of loan parts with a significant premium added? Does anyone seriously think that some people will buy this at +3% and a predicted rate of 4.5%? Is there some sort of glitch in autobid that means some people do this? How do the more experienced users of FC feel about the latest offering with 2% cb? Best wishes, Matt I've also wondered why some people try to flog some of these property loans at a premium. If you're not too desparate to actually sell the loan parts, then I imagine that it doesn't hurt to place them on sale anyway at a ludicrous premium in the hope that someone might be silly enough to buy one or two. This does happen. I have experimented with offering parts for sale at a range of premiums and only today sold a couple of C risk loan parts at way above the lowest rate obtainable in the SM. Maybe some people just don't know how to sort them by buyer rate! Oh, and Autobid isn't affected by any of this - It only buys in the secondary market at par (0%).
The latest offering with 2% splashback is understandably going fast. Bear in mind the 2% cashback can be re-invested immediately after the loan is drawn down, and with a term of only 10 months this appears to make it worth a bit more than 10% annual equivalent. I believe that there is also a tax advantage to having some of the return as a cashback incentive - that would be particularly relevant to a higher rate taxpayer. Only downside is that cashback loans tend to be bought by flippers eager to harvest the cashback and sell on, so it may be slower to sell on the secondary market. I'm probably not having any of this one, but only because I've got a bucketload of the earlier tranche!
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 13, 2015 20:12:29 GMT
I've also wondered why some people try to flog some of these property loans at a premium. If you're not too desparate to actually sell the loan parts, then I imagine that it doesn't hurt to place them on sale anyway at a ludicrous premium in the hope that someone might be silly enough to buy one or two. This does happen. I have experimented with offering parts for sale at a range of premiums and only today sold a couple of C risk loan parts at way above the lowest rate obtainable in the SM. Maybe some people just don't know how to sort them by buyer rate! I confess Ive just stuck some #12149 for sale at high premium as there's no reason not to. If it sells I can reinvest, if not Im still getting a decent return. I would probably not bother on any other platform at that interest rate but its Flaky Crumpets. Oh, and Autobid isn't affected by any of this - It only buys in the secondary market at par (0%). I didnt realise that. So autobid will actually end up buying parts at a lower rate than necessary. Eg. even at par after 2 weeks 8% loans give a buyer rate of 7.9% allowing for accrued interest.
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blender
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Post by blender on Apr 13, 2015 21:48:41 GMT
Autobid only sees the parts at par - it has no idea of whether that is good or bad (fortunately). The 7.9% is thought to be a 'display error'- should be 8%.
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SteveT
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Post by SteveT on Apr 14, 2015 8:11:15 GMT
Surprised that 12087 looks like it will crawl over the line just in time (98% filled with 5 hours to go). Clearly 1% CB still has enough appeal for many investors, although I'm sworn off anything other than 2% on 8% A+ and 9% A loans.
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Post by GSV3MIaC on Apr 14, 2015 15:51:41 GMT
Autobid only sees the parts at par - it has no idea of whether that is good or bad (fortunately). The 7.9% is thought to be a 'display error'- should be 8%. One of my long-standing autobuy complaints - it'll buy at par when it could have bought EXACTLY the same part at a discount instead. You can debate whether if should / should not buy a 15% at 2% markup over a 9% part at par, but you can't debate whether a 0% markup 8% part is a better buy than a 0.9% discount 8.8% part. 8>.
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