That's what I thought but I think the following FAQ is easily misinterpreted.
Do I have to accept a bid or offer manually or is it automated?
All bids and offers in the Secondary Market are live trades. So if you have placed a bid for a loan a lender can click to sell you their loans for all, or some, of your bid at the price you have set. There is no approval process after you have placed your bid.
The same is the case for offers. If you are offering your loans to other lenders they can automatically buy them at the price you have set.
I'm possibly being a bit slow this evening, but the SM for the SE*B amortizing loan shows the best Offer at 99% (12.499% AER) and the best Bid at 100% (11.571% AER). Why hasn't the (much smaller) Bid been satisfied from the Offer (or from the 2 Offers at 100% for that matter)?
[Unless all were posted by the same lender, but that would seem strange!]
Thanks for the tip SteveT ! I've sorted that - bought at 99 and sold to the other one at 100 3 satisfied parties, especially me
Trying to learn about Ablrate, so can I ask did jfm just make a quick buck there? Buying at a discount & selling on par (apologies if I get the lingo wrong - please do tell me)? Bit like seeing an item for £99 on ebay & a wanted add at £100 on gumtree, but where the quantities/prices involved make it worthwhile getting in the middle?
Yes he did. It doesn't happen often - only if someone doesn't check before putting up a price. I don't think I've ever seen it again. Not unusual to see someone with the best bid and offer buying and selling for a slight margin in a period of minutes though.
What to do if you are evil (/perhaps criminal?) and you are desperate to sell your loan part:
0) You already have the most discounted sale price (you are desperate to sell) - e.g. £1000 @ 99.5 1) You put a buy order for a similar amount but slightly higher - e.g. £1000 @ 99.6 2) You choose a popular time and sit there refreshing the page 3) Someone comes along, spots the arb and buys your £1000 @ 99.5 - they hope to make a quick £10 profit. 4) You see you've sold your loan part so you quickly cancel your buy at 99.6
Note that in practice the person in (3) may complain and request your account blocked!