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Post by red_panda on Jun 8, 2016 8:04:44 GMT
I'm generally aware of all the possible risks an investment can have and I just realized there is one additional one I wasn't fully aware. Assuming you purchase a loan of the Mintos secondary market at premium, a loan that has a high interest rate, an attractive YTM even with the premium, you run the risk of it being bought-back early (either early repaid, or agreement amendment), hence never making the expected YTM and possibly even loosing money on it if your accrued interest < the premium you paid.
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Post by littleinvestor on Jun 8, 2016 8:58:15 GMT
Indeed the SM for loans without buyback and free entry to charge premiums is for me a high risk marketplace that does not live up the potential rewards. Making few little % knowing your investment may not be returned in the event of default, or as you state indeed a loss, then for me this is the wrong place to be. If you want to make such high risk investment incl. potential loss of your entire investment, at least do it somewhere where you really could have a high potential gain for it (contracts for difference,venture capital trusts,spread betting, junk bonds,..) ; I don't touch it (risk>>reward), if I have some Euro's to spend more for which I want to take total risk, I prefer to spend it in stock market instead.
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