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Post by ratrace on Jun 21, 2016 12:29:17 GMT
l now mostly buy new C, D, and E loans on both the PM and SM. Then hold for 3 to 5 months before sellling them for the best return l think the market will offer. Current average return is 13%.
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sl75
Posts: 2,092 
Likes: 1,245
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Post by sl75 on Jul 1, 2016 12:33:24 GMT
Look at the default curves on the FC statistics page - you can see that the 'sell after 5 months' keeps you away from the worst issues in many cases. Guess who buys after 5 months? Yep, autobid, mostly. This seems somewhat misleading to me... if you "sell after 5 months", you'll be stuck with the loans which are not allowed to be sold, for example due to arrears that have not been caught up, or a significant credit event that made FC remove the risk band. Sure, they don't turn into defaults until some time after the 5 month mark, but that doesn't imply that you can get rid of them either.
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Post by Deleted on Jul 1, 2016 13:26:07 GMT
the "there is always someone dumber than me" strategy actually makes some sense.
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Post by GSV3MIaC on Jul 1, 2016 13:30:53 GMT
Yep, you can certainly make a case for 'sell after 3 months', but you need to drill further down into the loan data than the loan-book alone will let you .. you have to know when those defaulted loans went RBR. However the overall point, which was that autobid buys the majority of the chod, (whether that's at 3 months or 5) remains valid.
I do have the (incomplete) data, by risk band, and various other parameters (like whether they were WL rejects or not), and for many loans 5 months is still acceptable - i.e. it is a better yield to hold until then, rather than sell sooner (if selling at par).
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Post by GSV3MIaC on Jul 1, 2016 13:31:59 GMT
the "there is always someone dumber than me" strategy actually makes some sense. You can always rely on autobodge, (and a couple of badly programmed SM bots) which are dumber than mud. 8>.
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blender
Member of DD Central
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Post by blender on Jul 1, 2016 14:55:24 GMT
the "there is always someone dumber than me" strategy actually makes some sense. You can always rely on autobodge, (and a couple of badly programmed SM bots) which are dumber than mud. 8>. I hope you are not being rude about my friend Philanthrobot. How else can you can you sell property loan parts at a premium with 2 repayments left?
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