adrianc
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Post by adrianc on May 9, 2015 8:07:53 GMT
but Timmy would be grateful if someone can explain in plain English what that actually means! Some people are muppets, and sell stuff on the SM far too cheap. If you spot those, and buy them, you can make a truckload by selling them at the right price. The rest is just fine detail...
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Post by grumbledore on May 9, 2015 8:23:07 GMT
The rest is just fine detail... I second that. I picked up a load of A loans on the SM at 0% mark up and promptly sold them for 2.5% - 3% premium. Happy days 
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maxmarengo
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Post by maxmarengo on May 9, 2015 11:39:32 GMT
Thanks for flagging up that paper - I will read through it when I have a clear head and more time.
Finding loans that are priced too cheaply and reselling them is potentially a good way to make a profit but in my experience:
1) There are not that many of them and other people are trying to buy them as well.
2) Occasionaly you buy a lemon. The risk band get removed before you have sold it and you have to take a loss. You have to sell a lot of parts at 20p profit to make up a £10 loss!
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