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Post by khampson on Jun 3, 2016 11:31:58 GMT
The negative days don't necessarily mean that the loan will repay soon, as sometime SS has given the client an extension. But as a rule of thumb, if you want to keep your money in the investments for a while, try to buy loans with numbers higher than 70. These will also be more likely to sell quickly, especially the loans where the overall sum lent was relatively small. The land in Bedfordshire, for example, has gone through phases where it took a few days to sell on the secondary market, but right now it sells fast. what do you mean by higher than 70 ? thanks
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jimbob
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Post by jimbob on Jun 3, 2016 11:35:33 GMT
The negative days don't necessarily mean that the loan will repay soon, as sometime SS has given the client an extension. But as a rule of thumb, if you want to keep your money in the investments for a while, try to buy loans with numbers higher than 70. These will also be more likely to sell quickly, especially the loans where the overall sum lent was relatively small. The land in Bedfordshire, for example, has gone through phases where it took a few days to sell on the secondary market, but right now it sells fast. what do you mean by higher than 70 ? thanks More likely to have higher remaining days
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Liz
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Post by Liz on Jun 3, 2016 12:01:29 GMT
The negative days don't necessarily mean that the loan will repay soon, as sometime SS has given the client an extension. But as a rule of thumb, if you want to keep your money in the investments for a while, try to buy loans with numbers higher than 70. These will also be more likely to sell quickly, especially the loans where the overall sum lent was relatively small. The land in Bedfordshire, for example, has gone through phases where it took a few days to sell on the secondary market, but right now it sells fast. what do you mean by higher than 70 ? thanks PBL70-105, probably means DFL 1&2 also, as they are later loans.
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Post by khampson on Jun 3, 2016 12:05:14 GMT
are loans with less than 30 days remaining any riskier to buy than loans with much longer terms?
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SteveT
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Post by SteveT on Jun 3, 2016 12:21:27 GMT
are loans with less than 30 days remaining any riskier to buy than loans with much longer terms? Yes, that's basically why people are selling them, to avoid getting caught up in a potential default situation if the loan cannot be repaid at term (see PBL020)
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Post by mrclondon on Jun 3, 2016 12:23:31 GMT
are loans with less than 30 days remaining any riskier to buy than loans with much longer terms?
In theory any loan could default at any time as strictly if the borrowing entity ceases to exist in the same legal form as when the loan drew down, e.g. on death, bankruptcy, insolvency, administration etc etc, the loan agreement is in default of its original terms as the borrowing entity is no longer in a position to repay.
However given that all SS loans with positive days remaining should have the monthly interest due right through to the maturity date held on account by SS, it may be some time before SS become aware of this. However as the maturity date approaches and SS seek an update on the exit strategy (i.e. repayment of capital) the default may become all too obvious.
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david42
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Post by david42 on Jun 3, 2016 12:56:20 GMT
are loans with less than 30 days remaining any riskier to buy than loans with much longer terms? Stevet and mrclondon have explained that the lender pays the interest up front so the first time we would know there was a problem repaying the loan is when the loan gets to maturity. The counter arguments are a) many loans get extended, so by excluding loans nearer to repayment you are significantly restricting your investment opportunities. PBL020 did not default until it was 150 days overdue. b) everyone is playing the same game, so if the risk of loss on this platform becomes significant we will find a shortage of people wanting to buy loans that are approaching maturity.
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Post by meledor on Jun 3, 2016 13:34:03 GMT
are loans with less than 30 days remaining any riskier to buy than loans with much longer terms? Stevet and mrclondon have explained that the lender pays the interest up front so the first time we would know there was a problem repaying the loan is when the loan gets to maturity. The counter arguments are a) many loans get extended, so by excluding loans nearer to repayment you are significantly restricting your investment opportunities. PBL020 did not default until it was 150 days overdue. b) everyone is playing the same game, so if the risk of loss on this platform becomes significant we will find a shortage of people wanting to buy loans that are approaching maturity.
It is sometimes possible to guess there are problems before a loan gets to maturity.
With the garden centre when the loan was launched it was said that the borrower was in discussions with a commercial mortgage provider (and SS had seen the offer) who would refinance within 3-6 months after the acquisition was completed. Yet 8 months later that offer had evidently fallen by the wayside for in a weekly update it was said he had received a number of refinancing offers including an equity deal. In September a large fund was going to take us out in a few weeks, but in late October refinance was dependent on getting planning for the chalet development. And the planning was refused in March.
Of course arranging finance is subject to unexpected delays - one of the reasons we have bridging finance in the first place - but the repeated change in the story in this case indicated increased risk well before the maturity date.
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NSFW
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Post by NSFW on Jun 3, 2016 14:48:34 GMT
With the sums of money involved I don't think SS is really suitable IMHO  Pretty easy to diversify on the SM with a small pot of money. Except for the CAPTCHA and 1 second listings, etc.
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Liz
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Post by Liz on Jun 3, 2016 14:57:52 GMT
I just got some PBL 61
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mikes1531
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Post by mikes1531 on Jun 3, 2016 21:37:46 GMT
What happened to the thread discussing the new 7-day hold rule? I was going to post the below info to it, but I can't find it now.  Anyway, in case anyone was wondering what happened when your account balance goes negative while you have some short-dated parts for sale, the answer is... nothing! It appears that while a negative balance stops you from putting any more short-dated parts up for sale, any short-dated parts you already have for sale are not affected. Earlier this week I bought a few pence worth of PBL020, and since then I've been feeding 1p parts into the sale queue so that I can see how fast the queue is moving. Today's allocations sent my balance negative and I can't sell any more parts of that loan at the moment, but the parts that already were for sale seem to be progressing in the queue normally. I suppose there's a chance that they could be held at the front of the queue until I clear my negative balance, but I'm going to guess that won't happen. And I'm not sure I'll find out. The 1p that's furthest forward in the queue is at £20,523 and the queue hasn't made much progress today (£7,005.03 of parts bought). If that part doesn't reach the front of the queue before Sunday evening it'll be 7-days old by the time it gets there. |
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Post by earthbound on Jun 3, 2016 21:47:46 GMT
mikes1531 while your hovering, i spent today setting myself up for the pbl025 rollover to DFL , not done this before, what do i do with my PF if anything? thanks in advance.
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Liz
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Post by Liz on Jun 3, 2016 22:00:59 GMT
mikes1531 while your hovering, i spent today setting myself up for the pbl025 rollover to DFL , not done this before, what do i do with my PF if anything? thanks in advance. Set it to zero, if you don't want anymore. The PBL will automatically roll into the DFL.
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mikes1531
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Post by mikes1531 on Jun 3, 2016 22:01:07 GMT
mikes1531 while your hovering, i spent today setting myself up for the pbl025 rollover to DFL , not done this before, what do i do with my PF if anything? thanks in advance. : The last time this happened, any parts held in the old PBL were rolled forward into the DFL, and any additional funding required was allocated to pre-funding requests using the usual rules. (IIRC the additional funding was less that £1M so allocation was bottom-up.) In effect, there were two transactions. As we're all aware, though, SS can change the allocation rules whenever they like, so don't take the above as gospel. Hopefully SS will tell us how everything will work before it happens and we can set our pre-funding appropriately.
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Post by earthbound on Jun 3, 2016 22:04:30 GMT
mikes1531 Liz thanks, glad i asked, i had it in my head to set the PF on the new DFL to the same as pbl025. ta
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