agent69
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Post by agent69 on Apr 6, 2015 8:17:16 GMT
Been on holiday for 3 weeks and just been looking at current TC offerings.
I see there is a novel development in the dual 1A 1B loans, which we have been seeing over the last 6 weeks. B**r property loan 1A (with the good security) has all been given to one HNWI and only the dregs in loan 1B (with far less security) are available for the rank and file.
Hope this isn't a sign of things to come
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Post by tybalt on Apr 6, 2015 9:13:30 GMT
We have a choice and I am simply not investing in this. If the masses do so be it at least it reduces the pressure on loans I like the look of, which are becoming rarer.
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Jaydee
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Post by Jaydee on Apr 6, 2015 10:41:47 GMT
Been on holiday for 3 weeks and just been looking at current TC offerings. I see there is a novel development in the dual 1A 1B loans, which we have been seeing over the last 6 weeks. B**r property loan 1A (with the good security) has all been given to one HNWI and only the dregs in loan 1B (with far less security) are available for the rank and file. Hope this isn't a sign of things to come This was a loan I was considering as my first TC venture. However after your post I had a closer look. PV £1.06m, Loans A+B £1.2m, WS security available to B investors £105k. A ranks first, therefore total security available for B lenders is only 365k, 91.25% of total loan value, giving an LTV of 109.6%. Is this why they are offering such an attractive rate to B lenders?
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Post by captainconfident on Apr 6, 2015 19:02:19 GMT
Not to mention the phenomenon of the last Thin Cats lending club loan, which filled with a single 141k bid. Oh, I did mention it.
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Post by tybalt on Apr 6, 2015 19:53:26 GMT
That is brain dead all t does is take 0.5% off your yield to save you the grief of bidding on the highest risk loans
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agent69
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Post by agent69 on Apr 6, 2015 19:54:46 GMT
Not to mention the phenomenon of the last Thin Cats lending club loan, which filled with a single 141k bid. Oh, I did mention it. Most of the recent TLC's have struggled to get to £100k, although I see that the current offering (32) is optimistically listed with a target of £750k
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Post by tybalt on Apr 7, 2015 7:28:32 GMT
ThinCats Lending Club are listed at the maximum that TC thinks they can absorb. In practise any amount is accepted. At £k 146 he or she could have had better diversity by invests ting themselves. TCL limited to from memory 15% in any one loan. Recently one invested 15% in S* A* S* which appears to be a wipe out and 15% in R* Q* which is possibly going to be OK but is in ITC. If the robot /rules for TLC favour yield they also favour risk.
I am in two and except for the expense of disposal on the SM and the poor quality of information about them I sell tomorrow if I thought I would get value for them.
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pikestaff
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Post by pikestaff on Apr 7, 2015 16:06:16 GMT
Been on holiday for 3 weeks and just been looking at current TC offerings. I see there is a novel development in the dual 1A 1B loans, which we have been seeing over the last 6 weeks. B**r property loan 1A (with the good security) has all been given to one HNWI and only the dregs in loan 1B (with far less security) are available for the rank and file. Hope this isn't a sign of things to come This was a loan I was considering as my first TC venture. However after your post I had a closer look. PV £1.06m, Loans A+B £1.2m, WS security available to B investors £105k. A ranks first, therefore total security available for B lenders is only 365k, 91.25% of total loan value, giving an LTV of 109.6%. Is this why they are offering such an attractive rate to B lenders? I have no objection in principle to loans being tranched in this way, and I agree with the sponsor's view that they would have struggled to get the whole £1.2m away to TC lenders - one reason being that a lot of them will be full up with this particular borrower already. The LTV depends on how you look at it. The prospective value of the main property, once refurbished and with the pre-agreed lease in place, is £1.35m which will give a LTV for loan B of 400 / [(1350-800) + 125] = 59.3%. There is also an (unguaranteed) exit route disclosed. However, the security is all second charges and could evaporate if there is a serious problem - as would the exit route. One is therefore taking a good deal on trust with regard to the robustness of the business model, and I think the loan is best assessed as a business loan rather than as a property loan. I like the business model, and I've seen many worse loans, but I'm not convinced that 15% is quite enough return for the risk. Also, I have enough exposure to the borrower already and I am getting worried that he could be overreaching himself. Time to slow down and consolidate a bit IMO.
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