SteveT
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Post by SteveT on Feb 3, 2016 8:59:48 GMT
Hi looking to possibly sell some units and just want to make sure i understand this secondary market correctly. If I wished to sell say £100 and sell it after 1 month with a 1% premium and the interest rate is 12%. I place the funds on the secondary market and lets say it sold straight away - I would get my £100 back plus £1 of interest (from holding for 1 month) plus £1 premium fee. eg £102? I do appreciate it may not work exactly as this but hopefully numbers will be very close as in a few pence. I do appreciate buyers have all the tax issues etc etc.  Thanks for any help Essentially yes. Formally speaking, you're not receiving £1 interest but rather £1 extra capital value on the sale in lieu of passing the rights to that month of interest on to the buyer (if / when it is paid).
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daveb4
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Post by daveb4 on Feb 3, 2016 9:16:46 GMT
Stevet - Thanks, very valid point re interest/capital
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jamesc
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Post by jamesc on Feb 5, 2016 18:21:34 GMT
Hi
Can someone help please !. I have completely forgotten and can't find it on the website if you place a loan part up for sale does it continue to accrue interest up to the point of sale or is it like SS and the loan part stops accruing once put up for sale ?
Many thanks
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SteveT
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Post by SteveT on Feb 5, 2016 18:38:10 GMT
Hi
Can someone help please !. I have completely forgotten and can't find it on the website if you place a loan part up for sale does it continue to accrue interest up to the point of sale or is it like SS and the loan part stops accruing once put up for sale ?
Many thanks It carries on accruing interest and you can cancel it whenever you like.
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bjorn
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Post by bjorn on Feb 8, 2016 17:23:20 GMT
Hi looking to possibly sell some units and just want to make sure i understand this secondary market correctly. If I wished to sell say £100 and sell it after 1 month with a 1% premium and the interest rate is 12%. I place the funds on the secondary market and lets say it sold straight away - I would get my £100 back plus £1 of interest (from holding for 1 month) plus £1 premium fee. eg £102? I do appreciate it may not work exactly as this but hopefully numbers will be very close as in a few pence. I do appreciate buyers have all the tax issues etc etc. Thanks for any help Essentially yes. Formally speaking, you're not receiving £1 interest but rather £1 extra capital value on the sale in lieu of passing the rights to that month of interest on to the buyer (if / when it is paid). I'm sure this has been covered earlier but as it's a long old thread to trawl through ... would the £1 (or whatever interest is due) "extra capital value" exempt from tax so that selling on the SM ahead of the interest being paid effectively makes the "interest" you receive tax-free?
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ben
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Post by ben on Feb 8, 2016 17:30:03 GMT
Essentially yes. Formally speaking, you're not receiving £1 interest but rather £1 extra capital value on the sale in lieu of passing the rights to that month of interest on to the buyer (if / when it is paid). I'm sure this has been covered earlier but as it's a long old thread to trawl through ... would the £1 (or whatever interest is due) "extra capital value" exempt from tax so that selling on the SM ahead of the interest being paid effectively makes the "interest" you receive tax-free? The way I do it just calculate what interest I have received and will declare that
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SteveT
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Post by SteveT on Feb 8, 2016 17:38:07 GMT
Essentially yes. Formally speaking, you're not receiving £1 interest but rather £1 extra capital value on the sale in lieu of passing the rights to that month of interest on to the buyer (if / when it is paid). I'm sure this has been covered earlier but as it's a long old thread to trawl through ... would the £1 (or whatever interest is due) "extra capital value" exempt from tax so that selling on the SM ahead of the interest being paid effectively makes the "interest" you receive tax-free? There is a link to Funding Secure's explanation on their SM page
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Post by brendonl on Feb 12, 2016 9:16:30 GMT
Looking around the Secondary Market, there is an awful lot of the various loans of Italian Books/Italian library etc for sale. So much so that it seems as though some have insider information that there is issues here with the assets. Does anyone know anything about this?
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xp67
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Post by xp67 on Feb 12, 2016 10:29:12 GMT
Looking around the Secondary Market, there is an awful lot of the various loans of Italian Books/Italian library etc for sale. So much so that it seems as though some have insider information that there is issues here with the assets. Does anyone know anything about this? This generally happens as loans near the end of their term. I may be one of those who is making it look bigger than it really is - I am currently liquidating a large portion of my current loans to fund a large upcoming purchase, hence some of the larger-value 0% loans. I don't know of any 'insider information' here, I'm merely looking at clearing my oldest loans first, as the newer loans will continue to provide interest for longer.
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duck
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Post by duck on Feb 22, 2016 6:23:12 GMT
Has anybody else noticed how the secondary market has 'settled' in the last few days?
Currently there are over 60 loans listed at 0%. Yes most are short term but a fair number are for over 100 days.
Since the secondary market launched 0% almost certainly guaranteed a near instant sale no matter how short the term, however these offers have sat there for a full weekend.
I can't see the 2% flippers having much success [bleeding heart smilie] if this continues .... so why the slow down?
Have more realised the tax implications? People simply avoiding the aftermarket? ..... I'm tempted to think it is not a lack of lenders since most loans are still filling very quickly.
Are we approaching the point where a negative offer is required to make a sale?
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xp67
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Post by xp67 on Feb 22, 2016 8:11:03 GMT
Are we approaching the point where a negative offer is required to make a sale? I hope not! I've got £30k of loans which I need to sell before the end of the month!
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SteveT
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Post by SteveT on Feb 22, 2016 8:12:31 GMT
Yes, the recent splurge of 0% listings of "40 to 60 days remaining" parts has mostly throttled SM sales at a premium, for now at least. If it discourages the deep-pocketed from hoovering up new "unrestricted" auctions in seconds in the hope of flipping them at a profit, and so lets smaller lenders get a piece of the action, then it's a good thing.
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webwiz
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Post by webwiz on Feb 22, 2016 8:57:07 GMT
Has anybody else noticed how the secondary market has 'settled' in the last few days? Currently there are over 60 loans listed at 0%. Yes most are short term but a fair number are for over 100 days. Since the secondary market launched 0% almost certainly guaranteed a near instant sale no matter how short the term, however these offers have sat there for a full weekend. I can't see the 2% flippers having much success [bleeding heart smilie] if this continues .... so why the slow down? Have more realised the tax implications? People simply avoiding the aftermarket? ..... I'm tempted to think it is not a lack of lenders since most loans are still filling very quickly. Are we approaching the point where a negative offer is required to make a sale? Sanity is finally prevailing. The only question is whether those people who have already been stung have a case for compensation from FS.
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grt
New Member
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Post by grt on Feb 22, 2016 10:50:53 GMT
I'm interested to see how many Wind Turbine options come on to the SM, even at 0% I think they will be difficult to shift.
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mikes1531
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Post by mikes1531 on Feb 22, 2016 22:18:32 GMT
Are we approaching the point where a negative offer is required to make a sale? I hope not! I've got £30k of loans which I need to sell before the end of the month! At the moment, there's £1+k of 13% Power Boat (53 days to go) for sale at a 1% discount. And it hasn't disappeared instantly. Yes, the recent splurge of 0% listings of "40 to 60 days remaining" parts has mostly throttled SM sales at a premium, for now at least. If it discourages the deep-pocketed from hoovering up new "unrestricted" auctions in seconds in the hope of flipping them at a profit, and so lets smaller lenders get a piece of the action, then it's a good thing. I'm glad to see that flippers aren't having a lot of success selling at a premium. But I don't think that'll stop the deep-pockets from hoovering up big chunks of "unrestricted" auctions in seconds, as they can still buy and hold for a few months just for the 12% return. Then again, it doesn't look like 12% loans will sell quickly at par since there are so many 13% parts for sale showing higher returns. The SM definitely is maturing and getting a bit more sensible.
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