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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Post by ilmoro on Aug 11, 2020 17:01:29 GMT
It just keeps getting worse and worse. LAG reported a 6-7% capital repayment today on this loan, fortunately for me I sold this loan years ago but the recovery figures are terrible across the board. What ever happened to RSM estimates predicting over 50% recovery across the loanbook which seems like achieving that now requires a miracle? Why are these only achieving single figure percentage recoveries? Not seen any redemption breakdown, but my guess would be the usurious* default and service fees that Lendy levy on late loans which accrue ahead of any returns to lenders. * In my opinion, "usurious" from a moral and / or ethical perspective, even if they are deemed to have standing in law. Big issue in this case was the rubbish asset which not only has realised about 30% of the loan value but also took considerable time to realise so a good third of that went in IP recovery costs before Lendy/RSM even got to apply charges & waterfalls. Even without Lendy fees would have been sub 20% return. Edit: Only Lendy recovery fees are ahead of return to lenders, all other Lendy fees are pari passu currently
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iRobot
Member of DD Central
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Post by iRobot on Aug 11, 2020 19:10:46 GMT
Not seen any redemption breakdown, but my guess would be the usurious* default and service fees that Lendy levy on late loans which accrue ahead of any returns to lenders. * In my opinion, "usurious" from a moral and / or ethical perspective, even if they are deemed to have standing in law. Big issue in this case was the rubbish asset which not only has realised about 30% of the loan value but also took considerable time to realise so a good third of that went in IP recovery costs before Lendy/RSM even got to apply charges & waterfalls. Even without Lendy fees would have been sub 20% return. Edit: Only Lendy recovery fees are ahead of return to lenders, all other Lendy fees are pari passu currently Agreed, and if I honest, I had forgotten that Lendy accrued interest is equal in standing to that of lenders - but at 3% per month above the aggregate interest rate, it's still going to significantly erode lenders' returns.
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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: 11,330
Likes: 11,549
|
Post by ilmoro on Aug 11, 2020 19:29:44 GMT
Big issue in this case was the rubbish asset which not only has realised about 30% of the loan value but also took considerable time to realise so a good third of that went in IP recovery costs before Lendy/RSM even got to apply charges & waterfalls. Even without Lendy fees would have been sub 20% return. Edit: Only Lendy recovery fees are ahead of return to lenders, all other Lendy fees are pari passu currently Agreed, and if I honest, I had forgotten that Lendy accrued interest is equal in standing to that of lenders - but at 3% per month above the aggregate interest rate, it's still going to significantly erode lenders' returns. Indeed, the rough calcs provided on the LAG FB have the accrued default interest as £2.4m compared to a loan of £1.9m, takes Lendy share of proceeds to 50%+.
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