am
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Post by am on Jun 11, 2015 15:19:02 GMT
Gross rates 18.2%-20%; estimated bad debts of 8% pa; not included in autobid unless you manually include it; expected net rate of 9.2% comfortably above what you can get on a portfolio of loans at the moment.
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ilmoro
Member of DD Central
'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 Jun 11, 2015 15:25:21 GMT
Gross rates 18.2%-20%; estimated bad debts of 8% pa; not included in autobid unless you manually include it; expected net rate of 9.2% comfortably above what you can get on a portfolio of loans at the moment. I thought they were the Boss' backing band 
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coop
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Post by coop on Jun 11, 2015 16:14:03 GMT
Where is this???
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Post by yorkshireman on Jun 11, 2015 16:16:34 GMT
Where is the D band or is C- being “rebranded”?
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Steerpike
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Post by Steerpike on Jun 11, 2015 16:35:21 GMT
Mmmm. No autobid. May give this a miss for a while.
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Post by transo on Jun 11, 2015 16:39:29 GMT
Where is the D band or is C- being “rebranded”? Yep, C- is going to be re-labelled to "D" according to the post in the other place. Seems a very narrow band of gross rates, barely worth running an auction for. Not tempting until losses are tax relievable; after that possibly.
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am
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Post by am on Jun 11, 2015 16:42:02 GMT
Announced on the (in-house) Funding Circle forum, by Becky.
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blender
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Post by blender on Jun 11, 2015 16:44:23 GMT
FC are very excited about the new E type loans. At last C- has been rightly renamed D. But presumably no warning words such as 'above average risk' or 'high risk'?
The range of bids seems rather pointless. The percentage difference between 18.2 and 20 is only 11% and that sort of fine judgement cannot reflect perceived risk differences. Why not fix it? What is the point?
Presumably there is no loan application in the country which justifies rates between 15% and 18.2%. Or perhaps there are some applications which will be rejected by FC because they are too risky for D and not risky enough for E.
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Post by bracknellboy on Jun 11, 2015 16:46:38 GMT
FC are very excited about the new E type loans. I thought it was MoneyThing that were specialising in E Type loans ?
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blender
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Post by blender on Jun 11, 2015 16:48:38 GMT
FC are very excited about the new E type loans. I thought it was MoneyThing that were specialising in E Type loans ? What will we say about F Type loans?
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oldgrumpy
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Post by oldgrumpy on Jun 11, 2015 16:49:22 GMT
The percentage difference between 18.2 and 20 is only 11%...
So ....
Carp is carp is carp...*
*Spot the fishy typo?
Flawed Carp! 
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Post by bracknellboy on Jun 11, 2015 16:59:35 GMT
I thought it was MoneyThing that were specialising in E Type loans ? What will we say about F Type loans? How about "Can I have one please ?" I promise to keep it un-dinged for the duration.
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am
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Post by am on Jun 11, 2015 17:00:40 GMT
FC are very excited about the new E type loans. At last C- has been rightly renamed D. But presumably no warning words such as 'above average risk' or 'high risk'? The range of bids seems rather pointless. The percentage difference between 18.2 and 20 is only 11% and that sort of fine judgement cannot reflect perceived risk differences. Why not fix it? What is the point? Presumably there is no loan application in the country which justifies rates between 15% and 18.2%. Or perhaps there are some applications which will be rejected by FC because they are too risky for D and not risky enough for E. The range of bids is indeed rather narrow. The announcement suggests that these are going to be low capital value loans, so if there's any demand for the asset class they're liable to get bid down to 18.2% anyway. But from a PR viewpoint, introducing these as fixed rate loans might be seen as a stalking horse for fixing the rates on the other bands, which might result in an outcry from lenders. FC may want to dodge that bullet.
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Steerpike
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Post by Steerpike on Jun 11, 2015 17:03:44 GMT
Loans at 18-20%? Ridiculous! Which self respecting platform would have loans so risky that they justify such rates?
Oh, wait a minute.
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wysiati
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Post by wysiati on Jun 11, 2015 17:06:40 GMT
Loans at 18-20%? Ridiculous! Which self respecting platform would have loans so risky that they justify such rates? Oh, wait a minute. Putting the squeeze on ReBS?
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