fp
Posts: 1,008
Likes: 853
|
Post by fp on Apr 25, 2017 21:02:48 GMT
about £150k of purchases on this one today so far.
|
|
twoheads
Member of DD Central
Programming
Posts: 1,089
Likes: 1,192
|
Post by twoheads on Apr 26, 2017 10:25:24 GMT
11:20am. Around £70k has just been dumped - availability just went up from around £250k to £324k.
|
|
paul58
New Member
Posts: 2
Likes: 5
|
Post by paul58 on Apr 26, 2017 11:39:58 GMT
Another tranche? Loan increased and so too reported LTV.
|
|
mikes1531
Member of DD Central
Posts: 6,452
Likes: 2,320
|
Post by mikes1531 on Apr 26, 2017 12:40:46 GMT
Another tranche? Loan increased and so too reported LTV. If so, something is odd, because the queue doesn't indicate that it contains any LfSS parts. I just offered a part up for sale and it showed the queue in front of that part to be the same as the total shown as being available at the moment.
|
|
twoheads
Member of DD Central
Programming
Posts: 1,089
Likes: 1,192
|
Post by twoheads on Apr 26, 2017 14:55:22 GMT
Another tranche? Loan increased and so too reported LTV. I don't think so - I see no increase See my OP. The last tranche was on 20/01/17 and bought the loan amount to £11,242,419 (57% LTV). It is currently the same, so no change AFAICS? No changes to loan or LTV.
The £70k was dumped in smallish pieces, not one big chunk and it took a few minutes. Looked like someone with a large holding of multiple parts getting rid of them while it looks like they may sell.
There has been some liquidity in DFL004 today but people are dumping as fast as others are buying and it's no where near as liquid as I expected.
I think people are being put off by the sheer amount available and thinking 'nobody wants this one'. However, it's only 2.9% available, similar to several other shorter term 12%ers.
At the moment, for the available 12% loans with positive term (all now less than 80 days), it seems to be the smaller loans are now the most popular.
|
|
dzo
Member of DD Central
Posts: 158
Likes: 150
|
Post by dzo on Apr 26, 2017 20:37:43 GMT
At the moment, for the available 12% loans with positive term (all now less than 80 days), it seems to be the smaller loans are now the most popular.
This is true on every platform. Smaller loans suffer from a lack of supply, but there are plenty of people who want a little bit of every loan.
|
|
twoheads
Member of DD Central
Programming
Posts: 1,089
Likes: 1,192
|
Post by twoheads on Apr 26, 2017 21:11:04 GMT
At the moment, for the available 12% loans with positive term (all now less than 80 days), it seems to be the smaller loans are now the most popular.
This is true on every platform. Smaller loans suffer from a lack of supply, but there are plenty of people who want a little bit of every loan. Good point, and not something I'd considered.
Although, when 'buying the market' then I'd expect the investment in each loan to be in proportion with the loan size. Perhaps they're limited by the minimum pre-fund or similar.
|
|
dzo
Member of DD Central
Posts: 158
Likes: 150
|
Post by dzo on Apr 26, 2017 21:20:22 GMT
This is true on every platform. Smaller loans suffer from a lack of supply, but there are plenty of people who want a little bit of every loan. Good point, and not something I'd considered.
Although, when 'buying the market' then I'd expect the investment in each loan to be in proportion with the loan size. Perhaps they're limited by the minimum pre-fund or similar.
I can't imagine there are many people trying to accurately track the market, but there's probably quite a lot who want to buy the same fixed amount of every loan that meets their criteria.
|
|
|
Post by df on Apr 27, 2017 2:31:14 GMT
Good point, and not something I'd considered.
Although, when 'buying the market' then I'd expect the investment in each loan to be in proportion with the loan size. Perhaps they're limited by the minimum pre-fund or similar.
I can't imagine there are many people trying to accurately track the market, but there's probably quite a lot who want to buy the same fixed amount of every loan that meets their criteria. That very true, I'm one of them :-) I'm trying to stick to my criteria and fixed amount per loan disregarding the size. I'm probably loosing on maximum return, but diversification strategy feels safer to me.
|
|
twoheads
Member of DD Central
Programming
Posts: 1,089
Likes: 1,192
|
Post by twoheads on Apr 27, 2017 8:27:36 GMT
It'd be nice if more of the repaid £4.5m loans cleared it up today so I can sleep easier tonight.. but I think if it's going to clear it'll be next week once monthly interest has been paid into accounts. I expect that your sales of DFL004 have completed or are very nearly at the head of the queue.
Over the last 48 hours there has been well over £250k bought up on the SM (and nearly as much dumped on it - thus ruining my optimistic prediction that its availability would drop to zero - wrong again!)
|
|
|
Post by jackpease on Apr 27, 2017 9:04:53 GMT
I'm finding that while the headline SM availability doesn't look as though it has dropped dramatically, my parts that are within that market are unstuck ie there's a lot of flow through the SM Jack P
|
|
Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
|
Post by Liz on Apr 27, 2017 10:00:45 GMT
It'd be nice if more of the repaid £4.5m loans cleared it up today so I can sleep easier tonight.. but I think if it's going to clear it'll be next week once monthly interest has been paid into accounts. I expect that your sales of DFL004 have completed or are very nearly at the head of the queue.
Over the last 48 hours there has been well over £250k bought up on the SM (and nearly as much dumped on it - thus ruining my optimistic prediction that its availability would drop to zero - wrong again!)
Which is a big worry. If a few defaults don't clear soon and the default page rises significantly, say to 10% of the loan book or when LTPP admit that they can't pay out 100%, then the SM will grind to a halt.
|
|
SteveT
Member of DD Central
Posts: 6,874
Likes: 7,919
|
Post by SteveT on Apr 28, 2017 11:41:26 GMT
Sharing a useful reply I received from George to a Q&A question I submitted yesterday about the PRS Guarantee Scheme status on this project:
"Lendy's Development Director visited the site on 21st April. Works are progressing well, albeit a bit behind programme so facility may need to be extended by up to 3 months to allow for Practical Completion and refinance of facility. The borrower has now obtained/ provided indicative terms from a Private Rented Sector (PRS) Guarantee Scheme, which he has been in discussion with for several months as previously advised. The borrower is also considering other options to ensure the smooth refinance prior to expiry."
|
|
elliotn
Member of DD Central
Posts: 3,064
Likes: 2,681
|
Post by elliotn on Apr 28, 2017 12:50:37 GMT
I expect that your sales of DFL004 have completed or are very nearly at the head of the queue.
Over the last 48 hours there has been well over £250k bought up on the SM (and nearly as much dumped on it - thus ruining my optimistic prediction that its availability would drop to zero - wrong again!)
Which is a big worry. If a few defaults don't clear soon and the default page rises significantly, say to 10% of the loan book or when LTPP admit that they can't pay out 100%, then the SM will grind to a halt. Steve's update suggests 11M coming online at some point which may address (at least temporaily) some of your worst concerns.
|
|
|
Post by d_saver on Apr 28, 2017 18:56:55 GMT
Sharing a useful reply I received from George to a Q&A question I submitted yesterday about the PRS Guarantee Scheme status on this project: "Lendy's Development Director visited the site on 21st April. Works are progressing well, albeit a bit behind programme so facility may need to be extended by up to 3 months to allow for Practical Completion and refinance of facility. The borrower has now obtained/ provided indicative terms from a Private Rented Sector (PRS) Guarantee Scheme, which he has been in discussion with for several months as previously advised. The borrower is also considering other options to ensure the smooth refinance prior to expiry." So is this saying, subject to terms the project has been approved for acceptance into the government backed PRS scheme, or simply that they are still sitting on the application paperwork/progressing the application? I'm unclear exactly as to what 'provided indicative terms' really means, given almost anyone can get 'terms' and details as well as an application for the scheme at a very early stage. As I understood it acceptance into the scheme is possible once a development is complete (sure I read that somewhere), so we may have a way to go. I may be wrong as I last looked at this a few months ago. I'd really like some clarity from SS exactly where this is at and where the builder expects it to go. i.e. are they working towards and expect an exit via the PRS scheme route. [edit] PRS scheme rules are here for anyone interested www.gov.uk/government/uploads/system/uploads/attachment_data/file/568478/160105_Proposed_Scheme_rules_changes__update_.pdfreading the rules, they may be cutting it fine. If the development needs to be 'complete and with stable income' and this project is also to be delayed possibly several months before completion, that takes the completion out to end of september. In the rules it states 'Applications for the private rented sector debt guarantee must receive approval in principle from Government by 31 December 2017'. So, that may not allow much time to finish the project, prove a stable income and process the application? From the rules "Guaranteed debt only available from practical completion/purchase of completed units, but a letter of comfort that the project has qualified for guarantee support may be issued to support borrowers’ ability to access development finance." So do we have that letter of comfort? and "Finance will generally be available once projects have stabilised. Stabilisation will be achieved when the project has met the business plan base case projections presented by the borrower and agreed by PRS Operations Ltd and the guarantor in terms of, but not limited to, occupancy, rental levels, gross income and net operating income. "
|
|