Investor
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Post by Investor on Sept 18, 2015 13:45:04 GMT
and remember there is no loss of interest (SS Style), so no reason not to have it listed if you are happy to sell at the price. To be honest we should all have all our loans listed at all times for our default 'happy' value.
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james
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Post by james on Sept 18, 2015 14:12:46 GMT
Or are they relying on somebody else making a mistake and buying at a higher rate than they need to? You can't buy at a higher rate than you need to in that situation. You always start by buying the best price, then move on to the next and so on until the order is filled. The deal at 100% will block all others until it's fulfilled, modified or someone offers 99.999% to beat it. The person at 102% may be entirely happy to wait. I at ties have had offers on the secondary market that I didn't expect to be accepted, but would be content enough if someone was to buy. 99.999% is an insignificant difference for anyone who just wants to get out of the loan.
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registerme
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Post by registerme on Sept 18, 2015 14:35:53 GMT
and remember there is no loss of interest (SS Style), so no reason not to have it listed if you are happy to sell at the price. To be honest we should all have all our loans listed at all times for our default 'happy' value. Does that approach assume that you will be able to reinvest at the same rate / risk or better at all times?
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Investor
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Post by Investor on Sept 18, 2015 14:45:10 GMT
No, which is why your 'happy rate' would change to the price you feel you could re-invest in at a higher rate or same with better security at that point
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james
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Post by james on Sept 18, 2015 14:48:15 GMT
and remember there is no loss of interest (SS Style), so no reason not to have it listed if you are happy to sell at the price. To be honest we should all have all our loans listed at all times for our default 'happy' value. Does that approach assume that you will be able to reinvest at the same rate / risk or better at all times? Just set your price at the capital value today plus the value of all future repayments. That way you could leave the money earning nothing and still be ahead due to getting the money faster and as a capital gain rather than income, for most of us. You may not get a buyer but at that price you would presumably be happy.
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Post by ablrateandy on Sept 18, 2015 15:57:22 GMT
It's working as it is supposed to. The seller at 102 won't get any sales until the seller at 100 is done (unless the seller at 100 wants more loans and is willing to pay 102!).
And yes - as noted above there is no detriment to you if you leave everything on offer all of the time at a price that works for you. My stock is almost always for sale.
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registerme
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Post by registerme on Sept 18, 2015 16:56:08 GMT
I get that. I was just surprised that somebody would bother putting up a £100 offer behind £25,000 at a better rate. But I am still a newbie here so..... .
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Post by ablrateandy on Sept 18, 2015 17:23:50 GMT
We'll all be admiring him when someone comes in and buys 25,500 and he gets the best price. Fortune favours the brave!
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shimself
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Post by shimself on Sept 24, 2015 20:37:42 GMT
It seems to me if you try to amend an SM offer you can get the message on the lines of trying to sell more than you own when all I was changing was the rate.
And while I'm about it while creating an SM offer I can't see my current holding on the screen (it disappears off the top) which isn't helpful
And when creating, if the AER looks wrong it would be nice to amend the offer without hopping around screens, please. Reading this thread I understand you cant do it easily on the fly, but you could have two screens, the first with amount and rate (101% ish) press button to check AER, then tick novation and press Place Offer button. As it stands it's RSI time dashboard active bids and offers secondary offers details cancel offer current investments buy and sell loans create offer phew
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stevio
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Post by stevio on Oct 3, 2015 8:19:45 GMT
Just wondering if you put something up for sale, can you cancel/amend later?
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SteveT
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Post by SteveT on Oct 3, 2015 8:20:22 GMT
Yes, you can easily.
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blender
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Post by blender on Oct 3, 2015 8:27:12 GMT
I have to say that I have recently used the SM, had no difficulty in making the offer on the platform and have actually sold the loan at an acceptable rate in reasonable time. It works.
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SteveT
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Post by SteveT on Oct 3, 2015 8:44:23 GMT
Functionally it works very well indeed, probably better than any other SM I know that permits premiums and discounts. That said, I'm not sure everyone has got the hang of pricing loan bids according to the resultant AER. I've taken up bids a couple of times this week to buy parts in the first two 14% container loans at 101.5%. Sounds like a sensible sort of premium until you consider the remaining term is so short that the AER was around 9.5%.
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Post by ablrateandy on Oct 3, 2015 10:03:34 GMT
Glad people are finding it ok . You can cancel easily. Amending still has a glitch I think so if you own 200 and offer 150, you can't amend as it looks for the loan parts again (ie you can amend an offer for more than half of the amount that you own, otherwise you have to cancel and re-input). I am aware of "random" and illogical price-based purchasing activity ( james commented to me earlier this week as well). We provide AERs primarily to stop people making the "wrong" investment decision.... But some choose to ignore it! I can lead a horse to water.....
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james
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Post by james on Oct 3, 2015 10:42:12 GMT
This entry in the financial account is also a little funky, though correct when you understand it:
Investment £0.31 £bbb.bb Buy £xxx for -£0.31 on loan yyyyyyy in secondary market.
It's refunding part of the accrued interest that was included in the original bid price. To simplify accounting it would be nice to know the original amount paid as well as the refund amount. Just to save looking back for the original bid placement or checking any other records that may have been kept.
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