TheDriver
Member of DD Central
Slightly bonkers
Posts: 493 
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Post by TheDriver on Apr 25, 2016 12:02:49 GMT
My understanding from another thread is that we are already selling at Par, it's just that when you buy on the SM mostly you get the very low interest rate that "in house" bid, as most of the SM seems to be them unloading, and of course the annoying fee. Never had any problem selling though.
Hi Grahamg; I took B to mean marketed at the original bid rate, with the buyer taking over that rate - would make parts at higher rates more attractive, and if you could discount the principle it could be made even greater.
Haven't yet had any experience of selling, and am trying to understand the details.
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treeman
Member of DD Central
Posts: 1,026
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Post by treeman on Apr 27, 2016 15:27:32 GMT
My understanding from another thread is that we are already selling at Par, it's just that when you buy on the SM mostly you get the very low interest rate that "in house" bid, as most of the SM seems to be them unloading, and of course the annoying fee. Never had any problem selling though. Really ? I've had parts on a few loans listed for weeks now without so much as a nibble ....................  YEAAHHHH !!!!!!!! Finally sold the magnificent sum of £5.22 off one of my listed parts ! Not bad after more than 3 weeks ....................... 
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registerme
Member of DD Central
Posts: 6,618
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Post by registerme on Apr 27, 2016 22:25:41 GMT
My understanding from another thread is that we are already selling at Par, it's just that when you buy on the SM mostly you get the very low interest rate that "in house" bid, as most of the SM seems to be them unloading, and of course the annoying fee. Never had any problem selling though.
Hi Grahamg; I took B to mean marketed at the original bid rate, with the buyer taking over that rate - would make parts at higher rates more attractive, and if you could discount the principle it could be made even greater.
Haven't yet had any experience of selling, and am trying to understand the details.
My understanding is that there is no "par" on the Lending Crowd secondary market. You're selling at a blended rate, ie an average (weighted?) of all parts on the SM, with some bias to eliminate small holdings. So when a buy order appears on the SM there's an algorithm that works out what the weight should be, and then distributes a number of buys of parts on offer to "make that rate". I get the intent as in it prevents gaming the SM and trading into premiums, but it is a bit of a black box.
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Post by lendingcrowd on Apr 28, 2016 16:59:38 GMT
Hi everyone, Thank you for your comments on the secondary market - we appreciate your feedback and this has been passed on to the management team. Regarding registerme 's post, the Loan Exchange does show the weighted average interest rate of the available investments for sale. This aggregation was done to make the secondary market simpler and clearer for investors looking to buy loan parts. The selling investor does not receive the weighted average rate however - the seller receives the original interest rate that they had invested at in the first place. We wrote a post giving more detail on how the Loan Exchange works here: p2pindependentforum.com/post/63966. We hope this helps - if you have other questions please let us know. Thanks LendingCrowd |
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