sapphire
Member of DD Central
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Post by sapphire on May 21, 2023 16:03:09 GMT
There's an unusually large availability on today's loan in all layers, even at no-adreed bid levels. Perhaps due to family offices not working / biding on a Sunday. Previously when the auction started on a weekend, has there been significant bid activity on the Monday? Or Is this the first time CS have commenced the auction on a weekend?
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Post by Ace on May 21, 2023 20:03:31 GMT
There's an unusually large availability on today's loan in all layers, even at no-adreed bid levels. Perhaps due to family offices not working / biding on a Sunday. Previously when the auction started on a weekend, has there been significant bid activity on the Monday? Or Is this the first time CS have commenced the auction on a weekend? I can't recall a Sunday start before.
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Post by frank121 on Jun 1, 2023 17:24:15 GMT
I also really enjoyed the Interview with Steve on Financial Thing; very refreshing and down to earth explanations. If anyone is interested in investing, I would recommend you check out the appraisal documentation for a specific loan - the level of detail and transparency is really good and I personally find them very educating. (for someone who has little experience of this area but a big appetite for facts and figures)
I called CS yesterday just to ask a basic question on the secondary market. I was delighted to be put through to Steve even though I didn’t specifically ask to. I took the opportunity to ask some other questions which were on my mind and Steve was more than happy to spend time explaining. Being a small investor; I wouldn’t really expect this and if I didn’t have this question about the secondary market, I would have been unlikely to call. So, if any one reading this is considering investing and wants to learn more; I would really suggest you give him a call.
Putting a minimum of 2.5K per loan does make diversification harder; however it personally makes me dig much deeper into the details of the loan – and I think this will go toward in attracting lenders who will hopefully understand the risks better. While CS offer mostly junior debt; you can see exactly on the appraisal what it will be used for along with the opportunity of investing at different risk/LTV levels within the junior stack.
To be honest after looking at their latest loan, (Acton) I have learned a lot more about how GDV loans work and I do like the CS model as part of my P2P portfolio even if it’s junior debt; I can understand the risks much better than some platforms who offer my preferred senior debt model. (simply due to the lack of detail and pooled funds) I currently use Loanpad which is so simple and offers only senior debt under 50% LTV; but I always wonder how liquid it all is. Offering only two products (instant and 60 days) means they need to manage their cashflow very efficiently; but they seem to be keeping things stable by constantly increasing their rates and therefore no doubt limiting the natural withdrawals to a safer FSCS protected product. (something that AC didn’t do before they abandoned ship and trapping everyone’s cash, including mine) I know Louis Schwartz has talked about this recently on Financial Thing so worth a watch too. In additon to Loanpad, I am dabbling in Kuflink (select loans, where I can chose my investment) which suits my appetite for small loan amounts and therefore much easier diversification!
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Post by Ace on Jun 1, 2023 18:29:59 GMT
... I currently use Loanpad which is so simple and offers only senior debt under 50% LTV; but I always wonder how liquid it all is. Offering only two products (instant and 60 days) means they need to manage their cashflow very efficiently; but they seem to be keeping things stable by constantly increasing their rates and therefore no doubt limiting the natural withdrawals to a safer FSCS protected product. (something that AC didn’t do before they abandoned ship and trapping everyone’s cash, including mine) I know Louis Schwartz has talked about this recently on Financial Thing so worth a watch too. In additon to Loanpad, I am dabbling in Kuflink (select loans, where I can chose my investment) which suits my appetite for small loan amounts and therefore much easier diversification! Welcome to the forum frank121. Great first post. Loanpad have always serviced all withdrawal requests so far on the specified notice period (next day or 60 days). Many of us have tested it many times, including during the rush for withdrawals at the height of covid, and recently when the rise in FSCS rates made them less attractive. It doesn't mean that liquidity can be guaranteed of course, but, so far, it's been been extremely reliable.
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firedog
Member of DD Central
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Post by firedog on Jul 31, 2023 20:18:23 GMT
A couple of titbits from the summer newsletter, worth reading in its entirety: - CapitalStackers are looking to move some refinancing development loans onto sales bridges (and good explanation of the 'why')
- ISA accounts will soon no longer have to be pre-funded before bidding.
- CS may look at introducing lower thresholds for restricted investors (i.e. retail investors who are neither HNW nor Sophisticated).
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Post by Ace on Jul 31, 2023 21:01:33 GMT
For those that aren't aware, there is £80k+ of layer 2 availability and £11k+ of layer 1 availability in the last project to raise (A*t*n). Both are available at par. Presumably an underwriter looking to offload.
There's also availability on a couple of other projects that are nearing completion at lower rates in layer 1. I'm guessing that these could be sellers trying to convert their tax liabilities from interest to capital gains.
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Post by boristhedog on Nov 7, 2023 18:19:54 GMT
Worth pointing out that there is a secondary market now, so even though the new deals sell out quickly, you can usually pick up something if another investor wants to liquidate some funds.
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