pikestaff
Member of DD Central
Posts: 2,187 
Likes: 1,546
|
Post by pikestaff on Oct 17, 2015 23:06:57 GMT
I don't think it matters. Their current loanbook is at (I presume) an acceptable margin. When it repays, they can either re-lend it at an acceptable margin, or they can make a capital repayment to AC. I thought the subject was... What would happen if the borrower comes to the end of the AC loan term and hasn't arranged a refinance with another lender? In that case, the term of the loans in their portfolio and the speed at which they could wind down those loans is important. If the term is short enough, AC and its lenders likely would be happy enough to wait a couple of months for the orderly return of their money. With longer term loans, OTOH, AC lenders would be more likely to run out of patience, call in the receivers, and force a more disorderly liquidation of the borrower's assets -- which could severely damage the borrower's whole business operation. I think we'd let them wind down the loan book regardless. Stupid to do anything else. Meanwhile we collect the default intererest. But I don't think it will come to that, because I think they will have no trouble arranging a refinance - if necessary via institutional lenders on the platform.
|
|
am
Posts: 1,495
Likes: 601
|
Post by am on Oct 18, 2015 9:39:21 GMT
I don't think it matters. Their current loanbook is at (I presume) an acceptable margin. When it repays, they can either re-lend it at an acceptable margin, or they can make a capital repayment to AC. I thought the subject was... What would happen if the borrower comes to the end of the AC loan term and hasn't arranged a refinance with another lender? In that case, the term of the loans in their portfolio and the speed at which they could wind down those loans is important. If the term is short enough, AC and its lenders likely would be happy enough to wait a couple of months for the orderly return of their money. With longer term loans, OTOH, AC lenders would be more likely to run out of patience, call in the receivers, and force a more disorderly liquidation of the borrower's assets -- which could severely damage the borrower's whole business operation. Sorry. Both topics were on the table, and I lost track of where we were.
|
|
upland
Member of DD Central
Posts: 479
Likes: 175
|
Post by upland on Oct 22, 2015 6:32:19 GMT
Would it be possible for all the unhappy loans to be securitised into an account that would provide a positive outcome , albeit less return but some more diversity. I like the AC platform but finding new opportunities on it is hard.
|
|
|
|
Post by Deleted on Oct 22, 2015 9:00:57 GMT
The trick to AC for me is to use the shrapnalator, just load up some demand and it staggers in.  |
|
upland
Member of DD Central
Posts: 479
Likes: 175
|
Post by upland on Oct 22, 2015 9:18:56 GMT
The trick to AC for me is to use the shrapnalator, just load up some demand and it staggers in. Me too , its taken months but I now have a modest holding that is as diverse on the platform as I feel that I can sensibly make it and should produce a reasonable contribution to my wealth ! I probably hold about 90% of the loans in varying sizes depending upon how risky I think the situation is. But its a sad state of affairs when you start eyeing up the ones that you feel that you should not hold and wonder how to get some return from them as well , hence my interest in the unhappy loans.
|
|
