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Post by skyjuice on Jun 28, 2016 15:00:15 GMT
Hi
I am a newbie here. I would like to know how is the liquidity of the secondary market?
Anyone successful sell at the secondary market? If yes, do you sell at premium or discount? On average how long it takes to be sold off?
Thank you.
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Post by buttchopf23 on Jun 28, 2016 15:04:26 GMT
if you want to sell quickly, then with Discount.
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Post by red_panda on Jun 29, 2016 12:53:55 GMT
If you are selling a loan that is current, it will sell very easily with a 1% discount most of the times.
If you are selling a loan that is late on payments, you might struggle to sell it at all, unless you give it a significant discount that greatly increases (beyond 15%) the YTM (yield-to-maturity).
At this time, very limited number of loans sell at a premium, though there are many listed.
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Post by Vitalijs on Jul 5, 2016 13:28:33 GMT
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Post by skyjuice on Jul 11, 2016 15:28:20 GMT
Hi all,
Thanks for the updates / reply.
I have put sale on secondary market at premium price, thus far, none is sold off. Hence, it is long way to go in terms of liquidity since mortgage loan lock you for quite a number of years.
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jimc99
Member of DD Central
Posts: 284 
Likes: 115
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Post by jimc99 on Jul 11, 2016 22:02:07 GMT
The better the discount the easier to sell your loan. If your charging a premium then of course the SM will seem less liquid.
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Rob
Posts: 138
Likes: 36
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Post by Rob on Jul 12, 2016 8:39:05 GMT
Martins says about flippers: "Though there are a few “power” investors in the secondary market who take chunk of all transactions, when looking at average premiums charged or paid, they are not significantly different from other transactions taking place in the market." I think he is missing the point. Of course flippers don't charge a bigger premium than other transactions on the marketplace, else they would not be able to sell. But they are taking loans straight from the primary market using Auto Invest and adding no value to them as they don't yet have a payment history. So why should they be allowed to deprive other investors of the chance to buy on the primary market at no premium? I think that the practice should be dissuaded by not allowing the sale of a loan until it has been held for three months.
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Post by wiseclerk on Jul 12, 2016 9:42:43 GMT
With the loan supply structure on Mintos' primary market and the seller fee of 1% on the secondary market, there is virtually no usecase for flipping.
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