blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Sept 8, 2015 11:07:33 GMT
The switch has been thrown. I have sold 12 discounted property loan parts in a row this morning, all to different buyers.
They said it would start from today.
|
|
SteveT
Member of DD Central
Posts: 6,875 
Likes: 7,924
|
Post by SteveT on Sept 8, 2015 11:31:28 GMT
The switch has been thrown. I have sold 12 discounted property loan parts in a row this morning, all to different buyers. They said it would start from today. So would you say that discounted loan parts are being purchased in preference to those at par? My guess is yes. I sold 2 in the early hours at par in loans that have discounted parts down to 0.7% but, since breakfast time, my only property part sales (at par) have been in loans where there are no discounted £20 parts left. Hopefully the flippers will all wise-up quickly and stop listing their parts at a discount (flying pigs circling again ...). [Interestingly, on checking a number of the A+ 10% and A 12% property loans that I rapidly pulled off the SM the other day, I can find no £20 loan parts listed at par except for 14347 still. Looks like these will comfortably sell at a premium in future, despite coming with CB originally. Happy days, although I'm starting to wonder if we'll be seeing A+ 8% with 2%CB tranches ever again. Wondering whether I should be pulling these off the SM too and waiting a couple of weeks in the hope of selling them at a premium]
|
|
TitoPuente
Member of DD Central
Posts: 624
Likes: 655
|
Post by TitoPuente on Sept 8, 2015 11:57:18 GMT
Too many unknowns.
I wonder what's the hold up with the transition to fixed rates. It is clearly not because they still have an auction pipeline to put on the market. They are risking losing impatient lenders.
|
|
|
|
Post by GSV3MIaC on Sept 8, 2015 12:22:57 GMT
So if autobuy is buying at a discount preferentially (rather than 'chuck em all in the pot and pick at random'), I wonder when Full Cooperation plan to do something about autoSELL. If they don't then 'sell my loan parts automatically' is going to fail to do what it says on the tin, if there are discount parts around. There's also the interesting Q of whether it'd buy a discounted part ahead of a par one if they actually have the same buyer rate (obviously if they have different buyer rates you'd HOPE it would buy the one with the best buyer rate ... hmm ..).
The black box just got even less transparent (I know .. 'barely possible'). 8>.
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Sept 8, 2015 12:57:14 GMT
So would you say that discounted loan parts are being purchased in preference to those at par? My guess is yes. I sold 2 in the early hours at par in loans that have discounted parts down to 0.7% but, since breakfast time, my only property part sales (at par) have been in loans where there are no discounted £20 parts left. Hopefully the flippers will all wise-up quickly and stop listing their parts at a discount (flying pigs circling again ...). [Interestingly, on checking a number of the A+ 10% and A 12% property loans that I rapidly pulled off the SM the other day, I can find no £20 loan parts listed at par except for 14347 still. Looks like these will comfortably sell at a premium in future, despite coming with CB originally. Happy days, although I'm starting to wonder if we'll be seeing A+ 8% with 2%CB tranches ever again. Wondering whether I should be pulling these off the SM too and waiting a couple of weeks in the hope of selling them at a premium] Yes, they are going in preference to sales at par but I think that is to do with buyer rate. The trick will not be to remove the discount, because it is the higher buyer rate which is attracting them - say 9% instead of 8% and I think that Autobid will simply go by buyer rate being above the criterion set. The trick is to find the minimum discount which will attract sales. Have now sold 20 at a discount and par sales have stopped. This is how it should be to be fair to Autobidders - which some have called for.
|
|
arbster
Member of DD Central
Posts: 810
Likes: 426
|
Post by arbster on Sept 8, 2015 12:58:23 GMT
Too many unknowns. I wonder what's the hold up with the transition to fixed rates. It is clearly not because they still have an auction pipeline to put on the market. They are risking losing impatient lenders. FAQs yesterday said autobid change would take effect today and the new fixed rate loans would start from w/c 28th September.
|
|
TitoPuente
Member of DD Central
Posts: 624
Likes: 655
|
Post by TitoPuente on Sept 8, 2015 13:24:34 GMT
Too many unknowns. I wonder what's the hold up with the transition to fixed rates. It is clearly not because they still have an auction pipeline to put on the market. They are risking losing impatient lenders. FAQs yesterday said autobid change would take effect today and the new fixed rate loans would start from w/c 28th September. Thanks. It is good to know. However, I cannot find it. Is somewhere here? support.fundingcircle.com/home
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Sept 8, 2015 13:32:31 GMT
My guess is yes. I sold 2 in the early hours at par in loans that have discounted parts down to 0.7% but, since breakfast time, my only property part sales (at par) have been in loans where there are no discounted £20 parts left. Hopefully the flippers will all wise-up quickly and stop listing their parts at a discount (flying pigs circling again ...). [Interestingly, on checking a number of the A+ 10% and A 12% property loans that I rapidly pulled off the SM the other day, I can find no £20 loan parts listed at par except for 14347 still. Looks like these will comfortably sell at a premium in future, despite coming with CB originally. Happy days, although I'm starting to wonder if we'll be seeing A+ 8% with 2%CB tranches ever again. Wondering whether I should be pulling these off the SM too and waiting a couple of weeks in the hope of selling them at a premium] Yes, they are going in preference to sales at par but I think that is to do with buyer rate. The trick will not be to remove the discount, because it is the higher buyer rate which is attracting them - say 9% instead of 8% and I think that Autobid will simply go by buyer rate being above the criterion set. The trick is to find the minimum discount which will attract sales. Have now sold 20 at a discount and par sales have stopped. This is how it should be to be fair to Autobidders - which some have called for. Presumably, after an initial flurry of activity as the newly-uninhibited Autobid gorges itself on discounted parts at high Buyer Rates that it previously always coyly ignored, it will have to get back to its core objective of diversifying Grannies across as many loans as possible. Clearly any existing 9% / 10% A+ loans will be prioritised over 8% (and 11% / 12% A loans over 10%), even at modest discounts, but I doubt we're going to see too many more of those given the fixed SME rates that are round the corner. Once these unrealistically high rate loans have been consumed, it will be interesting to see how little one needs to discount an 8% part by to send it on its merry way.
|
|
arbster
Member of DD Central
Posts: 810
Likes: 426
|
Post by arbster on Sept 8, 2015 13:32:17 GMT
FAQs yesterday said autobid change would take effect today and the new fixed rate loans would start from w/c 28th September. Thanks. It is good to know. However, I cannot find it. Is somewhere here? support.fundingcircle.com/homeIt was in an email I received yesterday:
|
|
|
|
Post by nickthefool on Sept 8, 2015 13:50:21 GMT
Thanks arbster, I hadn't got that email.
|
|
registerme
Member of DD Central
Posts: 6,624
Likes: 6,437
|
Post by registerme on Sept 8, 2015 13:52:01 GMT
So I've just done an extremely crude analysis of my portfolio of FC loan parts. 77% of my portfolio is above the new fixed rates FC are offering. The majority of those that aren't are only shy by a tenth a percent or two (whereas a significant chunk of the 77% are a full percent or two above the new rates, and I've not taken cashbacks into account).
Given that I won't be able to discriminate on the basis of price for SME loans, for me I think it will come down to looking at a) how property loans play out, and b) how the SM looks in terms of flipping property parts and moving on SME parts. If a) and b) don't look attractive my money will be moving elsewhere.
|
|
arbster
Member of DD Central
Posts: 810
Likes: 426
|
Post by arbster on Sept 8, 2015 13:57:18 GMT
Thanks arbster, I hadn't got that email. No problem - just uploaded their average rate analysis table too.
|
|
arbster
Member of DD Central
Posts: 810
Likes: 426
|
Post by arbster on Sept 8, 2015 13:59:23 GMT
Given that I won't be able to discriminate on the basis of price for SME loans, for me I think it will come down to looking at a) how property loans play out, and b) how the SM looks in terms of flipping property parts and moving on SME parts. If a) and b) don't look attractive my money will be moving elsewhere. I may choose to stick around, opting to discriminate on the basis of lending or not lending, and try to "beat" the system by being better at DD. That said, doing the DD might be more work than is justified by the new rates - time will tell for me.
|
|
|
|
Post by nickthefool on Sept 8, 2015 14:05:26 GMT
So I've just done an extremely crude analysis of my portfolio of FC loan parts. 77% of my portfolio is above the new fixed rates FC are offering. The majority of those that aren't are only shy by a tenth a percent or two (whereas a significant chunk of the 77% are a full percent or two above the new rates, and I've not taken cashbacks into account). Given that I won't be able to discriminate on the basis of price for SME loans, for me I think it will come down to looking at a) how property loans play out, and b) how the SM looks in terms of flipping property parts and moving on SME parts. If a) and b) don't look attractive my money will be moving elsewhere. Doing the same, my average part is 1.2% above what the new rates will be. Range from 0%-4%, and all those at 0% came with cashback. I will probably keep investing at FC though, just less profitably. Will depend a bit what the new deal flow is like.
|
|
mv
Member of DD Central
Posts: 156
Likes: 45
|
Post by mv on Sept 8, 2015 14:08:00 GMT
So does anybody know if auto bid will start buying the best discounted parts available or simply any random part above the threshold set by granny? Is this the death of property parts selling at par? (it's been in the hospice for months)
|
|
