Post by chris on May 31, 2016 20:45:24 GMT
Oh, that's good news. Mmmm. Where's my salt cellar?
Does AC genuinely consider all these loans at 7-8.5% significantly lower risk than the 10-12% we were offered during 2014-2015?
The last prediction I made publicly about new loans coming through was last November / December when I correctly predicted the large upturn in loans in February / March. That upturn resulted in bottlenecks further down draining resource at the front of the pipeline as they bridged the gap. It's taken time to recruit new people to ease those bottlenecks, and now it will take a few weeks for them to come up to speed and for the loans they're working on today to filter through. There are more loans than ever in the pipeline and internal visibility is better than ever with new tools coming on stream in the next few days to improve that further.
In terms of pricing it's a combination of two things. Yes we believe these loans to be of higher quality, although that is our assessment and you should do your own research, and there is less of a price premium being applied over and above the risk price to attract lender funds.