Diversity on this platform

paulgul
Member of DD Central

Posts: 401
Likes: 92

Diversity on this platform Sept 1, 2015 17:14:29 GMT ablrateandy likes this

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Post by paulgul on Sept 1, 2015 17:14:29 GMT

First I should say I'm quite new to Ablrate so sorry if this is a bit of a dumb question:

We're always told that diversification is the key to success on P2P in general but the thing that worries me on this platform is the large number of loans connected to one borrower, if I invest in all of the aircraft loans then effectively I'm dealing with just this one borrower with the associated risk - am I correct or am I missing something

ablrateandy
Representative of Ablrate

Posts: 935

Likes: 561

Diversity on this platform Sept 1, 2015 17:49:06 GMT via mobile

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Post by ablrateandy on Sept 1, 2015 17:49:06 GMT

The key point is that each aircraft is in a separate SPV so a problem with one lessee will not impact another loan. Once a lease is established, many companies could act as the manager, it just happens that Phoenix is doing it for the loans originated. If something happened to Phoenix, we would appoint a new manager. We do have three loans vs one aircraft at the moment but feel very comfort with the LTV still (the aircraft actually went up in value between Tranche 2 and Tranche 3!). As more loans come on and we gain critical mass, we'll have other lessors and operators

On containers, as another example, we have security over different containers registered at Companies House so we feel that the loans are comfortably segregated.

paulgul Member of DD Central Posts: 401 Likes: 92	Diversity on this platform Sept 1, 2015 18:16:12 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by paulgul on Sept 1, 2015 18:16:12 GMT Thanks for the explanation, certainly gives me more confidence in the platform

Post by paulgul on Sept 1, 2015 17:14:29 GMT

Post by ablrateandy on Sept 1, 2015 17:49:06 GMT

Post by paulgul on Sept 1, 2015 18:16:12 GMT