Balder
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Post by Balder on Feb 14, 2016 10:46:18 GMT
Hi All
I am after some advice. I am looking to diversify and also have SIPP money to invest. I like the forum here for Ablrate and like how Ablrate also communicate on here. What I have struggled to find on their website is any information on expected returns, actual performance etc. Can anyone help please? Thanks
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SteveT
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Returns
Feb 14, 2016 11:56:57 GMT
via mobile
Post by SteveT on Feb 14, 2016 11:56:57 GMT
I'm not aware of there having been any defaults as yet, but my involvement only goes back a year or so. However there haven't been all that many loans in that time and quite a few have involved the same 2 or 3 borrowers.
As for expected returns, there are no platform fees so the headline rates / APRs that you see are what you get, until a future default arises. There is quite a range of different rates, which hopefully correlate with risk, so your actual return will depend on the mix of loans you invest in. I've probably run at about 13% over the last year, in part helped by sale premiums on the SM. However my total stake in Ablrate has varied widely depending on loan flow (so it's rising again currently ...)
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Balder
Member of DD Central
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Post by Balder on Feb 14, 2016 12:22:23 GMT
I'm not aware of there having been any defaults as yet, but my involvement only goes back a year or so. However there haven't been all that many loans in that time and quite a few have involved the same 2 or 3 borrowers. As for expected returns, there are no platform fees so the headline rates / APRs that you see are what you get, until a future default arises. There is quite a range of different rates, which hopefully correlate with risk, so your actual return will depend on the mix of loans you invest in. I've probably run at about 13% over the last year, in part helped by sale premiums on the SM. However my total stake in Ablrate has varied widely depending on loan flow (so it's rising again currently ...) Thanks Stevet. I was after a bit more info current loans amounts, durations and rates etc so I could then model my own predicted portfolio. Running at 13% average is good - are there loans paying higher than 13% or have you achieved that essentially by using the secondary market? Thanks
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SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
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Returns
Feb 14, 2016 12:34:56 GMT
via mobile
Post by SteveT on Feb 14, 2016 12:34:56 GMT
The series of short term container loans offered 14% and the scope to sell on at a good profit on the SM. Even the older 12% aircraft loans last no time on the SM at sub-10% APR. I'm amazed sometimes at the low APRs at which loans will sell, but that's a reflection of the loan famine over the last 6 months. If a series of large new 12% / 13% loans start flowing again then Ablrate will revert to a "buy and hold" platform for me.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Returns
Feb 14, 2016 12:34:57 GMT
via mobile
Post by ilmoro on Feb 14, 2016 12:34:57 GMT
I'm not aware of there having been any defaults as yet, but my involvement only goes back a year or so. However there haven't been all that many loans in that time and quite a few have involved the same 2 or 3 borrowers. As for expected returns, there are no platform fees so the headline rates / APRs that you see are what you get, until a future default arises. There is quite a range of different rates, which hopefully correlate with risk, so your actual return will depend on the mix of loans you invest in. I've probably run at about 13% over the last year, in part helped by sale premiums on the SM. However my total stake in Ablrate has varied widely depending on loan flow (so it's rising again currently ...) Thanks Stevet. I was after a bit more info current loans amounts, durations and rates etc so I could then model my own predicted portfolio. Running at 13% average is good - are there loans paying higher than 13% or have you achieved that essentially by using the secondary market? Thanks The average is inflated by a number of short 6 month sub 100k container loans at 14% More typical are the plane loans running 3-6yrs at 10-12%. Some affected from premium selling on SM as supply is quite limited on PM. Lack of deadtime on loan drawdown assists earnings. Current offering 3mths @13% 1.8m.
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Balder
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Post by Balder on Feb 14, 2016 12:37:56 GMT
Thanks Ilmoro.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,877
Likes: 11,101
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Returns
Feb 14, 2016 13:03:01 GMT
via mobile
Post by ilmoro on Feb 14, 2016 13:03:01 GMT
I should add that most loans are sub 500k. Current loan is largest to date (a larger one early last year failed to fly) with only one other 1m plus. Most loans are Interest only. The few amortising loans arent tradeable on SM for technical reasons.
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duck
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Post by duck on Feb 14, 2016 13:48:46 GMT
The series of short term container loans offered 14% and the scope to sell on at a good profit on the SM. Even the older 12% aircraft loans last no time on the SM at sub-10% APR. I'm amazed sometimes at the low APRs at which loans will sell, but that's a reflection of the loan famine over the last 6 months. If a series of large new 12% / 13% loans start flowing again then Ablrate will revert to a "buy and hold" platform for me. Ablrate has always been a 'buy and hold' platform for me, I've resisted the temptation to sell anything on the aftermarket even if I could drag in a few extra £ or an extra 0.5% .... I save that for other platforms. I hold 3 accounts each with a different balance of loans and terms (I started with Ablrate in the second half of 2014) so I'm more than happy with my returns which have been (and are currently) just below 12%. Certainly one of my preferred platforms.
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