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Post by maximus on May 1, 2016 8:42:35 GMT
Looks like there is no more loan parts on the secondary market available that can be purchased at either discounted or 0% rate unless willing to invest a large sum of money into single part loan. I guess that lenders try to get back the fees that FC are taking when selling loan parts, when adding up the fact that new A+ loans rate are set at 8% that makes investments quite unattractive at this time. Your views on that?
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archie
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Post by archie on May 1, 2016 9:06:10 GMT
I always sell at a premium, it varies depending on the rate the buyer would receive.
It's been a sellers market recently as lenders have been enticed by the ipad/kindle promotions. I've sold a lot of loans that have been on sale for months.
While my original intention was to get rid of the longer term loans, I've added several others since. All gone.
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SteveT
Member of DD Central
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Post by SteveT on May 1, 2016 9:10:38 GMT
Bear in mind that you typically face a few days delay for a new loan to be accepted and interest to start accruing, whereas you start accruing interest immediately when you buy existing parts via the SM. Therefore paying a premium of 0.3-0.5% (depending on risk band) can be a reasonable trade-off if it's a loan that you like the look of. On occasions I'm happy to pay more than this when it's a smaller D/E loan (sub-£25k, say) and has only been live for a couple of weeks, since I can be reasonably confident that I'll command a similar premium when I sell it on a few months down the line.
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min
Member of DD Central
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Post by min on May 3, 2016 15:49:57 GMT
I always sell at a premium, it varies depending on the rate the buyer would receive. It's been a sellers market recently as lenders have been enticed by the ipad/kindle promotions. I've sold a lot of loans that have been on sale for months. While my original intention was to get rid of the longer term loans, I've added several others since. All gone. Over the long weekend have sold everything sellable-mostly at a small premium (loans with less than 5 months left went at par). Just left with 4 loans processing, lates and rbrs. Total £166.66. Plus of course all of the bad debts-some of which cough up at regular intervals.One interesting effect is that I am now a full blown diversity criminal. 16.4% in one business and as it's the rbr with longest to run I can only see the figure growing - might even get to 100%.
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Post by GSV3MIaC on May 3, 2016 20:27:45 GMT
So where shall we look for you in future, having jumped this particular ship?
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min
Member of DD Central
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Post by min on May 3, 2016 22:06:20 GMT
So where shall we look for you in future, having jumped this particular ship? AC FK FS SS Also LC but only till I can get out and keep the £100.
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