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Post by runtley on Mar 30, 2017 21:17:44 GMT
It's normal to have a default clause in a loan agreement, I expect they would be regarded as breaking covenants if they default on one loan and that will trigger a default on any others.
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twoheads
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Programming
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Post by twoheads on Mar 30, 2017 23:31:01 GMT
You would have thought so.
My guess is that it (PBL084) will probably be extended when PBL166 is actually drawn down.
Well if it isn't extended, then we going to have an interesting scenario of the first part defaulting, while the second part is still in +ve days. Currently as it now stands, the difference between the life of the two loans, is 207 days... Perhaps it would then be called a hybrid default?  To be honest, I can't quite make out what is going on here.  I have to agree... not sure what's going on... let's see how it plays out.
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Post by lendinglawyer on Mar 31, 2017 9:16:20 GMT
It's normal to have a default clause in a loan agreement, I expect they would be regarded as breaking covenants if they default on one loan and that will trigger a default on any others. Correct. Cross-default clause. But remember new loan is second lien so you won't see a penny until first loan is 100% repaid.
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bg
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Post by bg on Mar 31, 2017 11:12:13 GMT
Went live at 14:16, 1310 investors, allocation £3150 I think.Confirmed, £3150, asked for £5k. But why would you ask for any of it when there is PBL084 sitting available on the SM? I'm baffled.
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Post by supernumerary on Mar 31, 2017 12:28:18 GMT
Confirmed, £3150, asked for £5k. But why would you ask for any of it when there is PBL084 sitting available on the SM? I'm baffled. The psychology of crowd behaviour perhaps? It's normal to have a default clause in a loan agreement, I expect they would be regarded as breaking covenants if they default on one loan and that will trigger a default on any others. Correct. Cross-default clause. But remember new loan is second lien so you won't see a penny until first loan is 100% repaid. That was my understanding as well. PBL084 offers more security to lenders, than this new loan PBL166.
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sildenafil
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Post by sildenafil on Mar 31, 2017 13:11:32 GMT
Confirmed, £3150, asked for £5k. But why would you ask for any of it when there is PBL084 sitting available on the SM? I'm baffled. Perhaps they had no cash on account and their negative balance from this allocation would be cleared by the interest coming in tomorrow? Otherwise, I agree with you...
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Post by supernumerary on Mar 31, 2017 14:29:42 GMT
But why would you ask for any of it when there is PBL084 sitting available on the SM? I'm baffled. Perhaps they had no cash on account and their negative balance from this allocation would be cleared by the interest coming in tomorrow? Otherwise, I agree with you... Good point, that may be a possible reason, because as bg has stated, it is baffling. This new loan PBL166, whilst giving the borrower further time to make the project work, does not affect the fact, that the LTV is still at 59% for PBL084. IMHO, lenders in PBL084 are virtually guaranteed of getting their money back, with a first charge on the capital and an LTV at 59%.
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elliotn
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Post by elliotn on Mar 31, 2017 14:33:39 GMT
But why would you ask for any of it when there is PBL084 sitting available on the SM? I'm baffled. Perhaps they had no cash on account and their negative balance from this allocation would be cleared by the interest coming in tomorrow? Otherwise, I agree with you... Allocation was up to 3k+ so some lenders may have to make whole beyond their interest payment. The risk profile is very different so I think I would have sat out or raided the sofa for 84 if I had to be in it.
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Post by supernumerary on Mar 31, 2017 19:18:29 GMT
You would have thought so.
My guess is that it (PBL084) will probably be extended when PBL166 is actually drawn down.
Surprised not posted already but the Lendy update for PBL084 is: I wonder when 'the remaining term' of PBL084 and PBL166 will be synchronized? Currently, PBL084 is at -29 days, with PBL166 at 182 days. A difference of 211 days...
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Post by df on Mar 31, 2017 20:20:26 GMT
Surprised not posted already but the Lendy update for PBL084 is: I wonder when 'the remaining term' of PBL084 and PBL166 will be synchronized? Currently, PBL084 is at -29 days, with PBL166 at 182 days. A difference of 211 days... Probably after 084 passed -180 days :-)
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dzo
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Post by dzo on Mar 31, 2017 20:26:07 GMT
Surprised not posted already but the Lendy update for PBL084 is: I wonder when 'the remaining term' of PBL084 and PBL166 will be synchronized? Currently, PBL084 is at -29 days, with PBL166 at 182 days. A difference of 211 days... The borrower can't pay the interest on PBL084 until PBL166 has drawn down. That's why they needed a new loan in the first place.
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Post by supernumerary on Apr 3, 2017 13:17:57 GMT
I wonder when 'the remaining term' of PBL084 and PBL166 will be synchronized? Currently, PBL084 is at -29 days, with PBL166 at 182 days. A difference of 211 days... The borrower can't pay the interest on PBL084 until PBL166 has drawn down. That's why they needed a new loan in the first place. Thanks for the 'heads up' on that point. Still not draw down yet though...  I wonder why there has been a delay? 
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Post by GSV3MIaC on Apr 3, 2017 16:58:31 GMT
/mod hat off
I wonder why a second charge (to pay the interest on the first charge!) flew off the shelves at the same 12% rate as the first charge loan .. I'd have wanted at least a 2% premium to paddle in that pond (and on certain other platforms I'd have got it). 8>.
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gurberly
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Post by gurberly on Apr 3, 2017 19:32:08 GMT
/mod hat off I wonder why a second charge (to pay the interest on the first charge!) flew off the shelves at the same 12% rate as the first charge loan .. I'd have wanted at least a 2% premium to paddle in that pond (and on certain other platforms I'd have got it). 8>. I suspect there are quite a few thinking that exact question.. it does take the previous Lendy "extend and pretend" loan model to a new level.
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Post by supernumerary on Apr 3, 2017 20:24:10 GMT
/mod hat off I wonder why a second charge (to pay the interest on the first charge!) flew off the shelves at the same 12% rate as the first charge loan .. I'd have wanted at least a 2% premium to paddle in that pond (and on certain other platforms I'd have got it). 8>. I suspect there are quite a few thinking that exact question.. it does take the previous Lendy "extend and pretend" loan model to a new level. In a day or two, or three, etc, PBL166 will be drawn down and PBL084 will be extended in days to match PBL166, but the current anomaly is rather strange to say the least. Not withstanding that PBL084 is first charge and PBL166 is second charge, which makes PBL084 @ LTV 59% much, much more secure.
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