blender
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Post by blender on Jan 14, 2017 14:44:08 GMT
It was only ever the FC trust which bought property loans. They stopped months ago. IMO the secured A+ property loans are a much better buy than the A+ SMEs, especially since the rate reductions. The WL lenders are getting a A+ population that I would call 'sub-optimal'. A shame.
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blender
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Post by blender on Jan 15, 2017 10:24:11 GMT
Yes, the note that they attached to the Q&A of each new property loan is 'counter-factual'. To be more precise, there was one recently which was offered WL and taken, 29766. But before that they finished offering property as WL with 26025, which makes its fourth payment on 21st Jan. I think there is a limit on property held in the trust (to limit exposure to any property downturn) and perhaps the recent addition is a top up.
For those of us who want all 10% property loans to come to the PL, this is good. You just have to know what they do, rather than what they say they do.
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SteveT
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Post by SteveT on Jan 15, 2017 10:49:05 GMT
Interesting. Doesn't that go against FC's policy that each new loan will be randomly assigned as a whole or partial loan? And why did the FC trust stop buying property development loans? The overall average allocation is not random, it is managed by FC. In the case of property loans, the allocation is 0% WL / 100% PL (until / unless the investment trust decides it wants more). Once the allocation is defined, decisions on individual loans are random. For example, a 70/30 allocation could be considered as a 10 sided die with 7 sides marked WL, 3 sides marked PL. For property loans, all sides are currently marked PL.
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SteveT
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Post by SteveT on Jan 15, 2017 11:09:37 GMT
Why did the FC investment trust stop buying property development loans? No idea, although it must be pretty much fully invested by now so perhaps they've tweaked down their target split and won't need any new ones for a while.
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