am
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Post by am on Nov 25, 2015 13:04:57 GMT
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Post by aloanatlast on Nov 26, 2015 0:09:33 GMT
Just SMEs? No mention of property. They're going to want about 1,000 loans in a hurry. Good time to be a borrower. Not a good time to be the employee who rejects an application, even if it's total dross.
Not convinced about the random allocation claim, given that the obvious next move to build volume is to offer borrowers bigger loans and more flexible terms.
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SteveT
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Post by SteveT on Nov 26, 2015 8:06:18 GMT
My guess is they'll run a second funding round targeting the retail ISA investor market in March / April.
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arbster
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Post by arbster on Nov 26, 2015 8:24:35 GMT
With all of these things I don't really understand why they don't just have Funds and Institutional Investors taking 40-50% of all loans, putting the rest onto the PM for retail investors. It would provide greater diversification for the former (and for Autobiddies), and more choice for the latter, albeit with a smaller share of everything to invest in.
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blender
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Post by blender on Nov 26, 2015 9:34:24 GMT
I do not think the property business is stable enough or predictable enough yet to put it into funds or institutions. As Stevet implies, we will not really know FC's strategy for the partial market until we learn how they plan to offer the retail ISA. Does that have to be through the partial marketplace? Whatever the ISA is the Autobidders will need to migrate to it. The partial market may be evanescent. The software approach for the partial platform seems to be palliative care only, with a big DNR notice over the bed.
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Post by GSV3MIaC on Nov 26, 2015 10:59:43 GMT
With all of these things I don't really understand why they don't just have Funds and Institutional Investors taking 40-50% of all loans, putting the rest onto the PM for retail investors. It would provide greater diversification for the former (and for Autobiddies), and more choice for the latter, albeit with a smaller share of everything to invest in. Unlike the BBB, the WL investors still get to cherry pick, and I doubt they'll want to give that up (cherry pick = fail to invest if they don't like the look, rather than 'select from the whole set of loans which ones they will consider'). Should they? Hell NO!! The funds should definitely run like the BBB - X% of everything. That made more sense when the rate for 'everything' were market driven by the lenders though.
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Post by longjohn on Nov 26, 2015 13:10:44 GMT
I've done a quick analysis of the loanbook for November so far and it looks like this - 676 Loans accepted 478 Whole loans = £52,433,060 (excluding rejected loans) 198 Part loans = £22,172,680 (this includes 60 whole loan rejects) Attachment DeletedFor the whole lenders their property loans look like normal small businesses whereas the part loans are mostly developers (with CB) so this skews the A+ a bit in our favour. At the moment the balance is about 70/30 but if all the whole loans were taken up the balance would be 82/18. We are steadily becoming marginalised. John |
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acky
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Post by acky on Nov 26, 2015 13:46:32 GMT
I've done a quick analysis of the loanbook for November so far and it looks like this - 676 Loans accepted 478 Whole loans = £52,433,060 (excluding rejected loans) 198 Part loans = £22,172,680 (this includes 60 whole loan rejects) For the whole lenders their property loans look like normal small businesses whereas the part loans are mostly developers (with CB) so this skews the A+ a bit in our favour. At the moment the balance is about 70/30 but if all the whole loans were taken up the balance would be 82/18. We are steadily becoming marginalised. John It is not in FC's business interests to marginalise the retail market. They want to grow and for that they need every source of money they can lay their hands on, including us. I don't see signs of the PM being undersupplied with new loans. Some loans take close to the week to fill and with the exception of Monday mornings, there are a number of loans available. On this forum, we keep grumbling that not enough Autobodge money is going to the SM, and that would only get worse if there were more new loans. I believe FC are carefully balancing the supply of part loans with the available money supply and, on the whole, doing a reasonable job of it. If they have more borrowers than we can service, then inevitably they have to look more towards the institutions.
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oldgrumpy
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Post by oldgrumpy on Nov 26, 2015 14:10:09 GMT
I've done a quick analysis of the loanbook for November so far and it looks like this - 676 Loans accepted 478 Whole loans = £52,433,060 (excluding rejected loans) 198 Part loans = £22,172,680 (this includes 60 whole loan rejects) For the whole lenders their property loans look like normal small businesses whereas the part loans are mostly developers (with CB) so this skews the A+ a bit in our favour. At the moment the balance is about 70/30 but if all the whole loans were taken up the balance would be 82/18. We are steadily becoming marginalised. John ....Some loans take close to the week to fill and with the exception of Monday mornings, there are a number of loans available..... FC are carefully balancing the supply of part loans with the available money supply and, on the whole, doing a reasonable job of it.
That available money from retail lenders has probably declined since Fiscal Crumblers decided to impose fixed rates (at a lowish level) and very abruptly start assessing a high proportion of loans A or A+ ... the difference in spread of these risk bands was very noticeable immediately following the fixed rate date.
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