oik
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Post by oik on Aug 6, 2017 11:15:44 GMT
I take a different angle. I've got mostly tranche A in this loan as its effective LTV is 46% and it ranks ahead of tranche B. This gives me a warm feeling when things are looking a little uncertain. Though I'm still pretty confident MT will resolve any issues so neither tranche loses money I think you've read it right. Let's put it this way: if you were to lose out on a loan supposedly with an LTV of 46% that would certainly be a wake up call for those of us with alleged 70% LTV loans.
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GeorgeT
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Post by GeorgeT on Aug 6, 2017 12:00:07 GMT
All good comments and I agree a progress report from MT would be good.
I put my loan parts in both the 10% and 13% tranches up for sale (admittedly a day late so a lot of sellers got in front of me). On Friday (AE repayment day) I sold quite a bit of my 13% holding, but still miles back in the 10% queue.
So I think it's worth remembering that the rate sells, and 13% is easier to sell out of than 10%.
So - 13% higher risk in terms of a default and non full recovery - but easier to sell out of and thus have zero risk.
10% - More likely not to lose capital - but more likely to be stuck carrying that lower risk.
My personal opinion is that it's always better to go for the highest rates, regardless. Because higher rate = higher liquidity.
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oik
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Post by oik on Aug 6, 2017 12:20:52 GMT
My personal opinion is that it's always better to go for the highest rates, regardless. Because higher rate = higher liquidity. That approach relies heavily on the the "greater fool" theory but no less valid for that - except of course for those greater fools. An alternative approach might be to try to ensure that, whatever the rate accepted, it reasonably reflects the level of risk.
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Post by sannytwist on Aug 6, 2017 18:21:47 GMT
I've got much more in the 13% tranche that sits behind the 10% bit. A little bit of 10%, a lot more of 13%. That was necessary to hit my overall return target whilst building in some risk mitigation. Comfort is provided by the Broadoak 5% of first loss safety blanket. And fortunately I'm not nearly as exposed to this one as I was initially as I sold some along the way to diversify into other MT loans. Hopefully MT and BO will manage this one to a satisfactory conclusion and the loan parts for sale are still earning interest as things progress. I am relaxed and have every confidence in the platform. It's a good lesson in why nothing less than 12% overall should do given the risks. For people in it for the medium to long term, some capital losses are inevitable and that's why I think it's important to aim high and set the bar at 12% with some 13% and 14% thrown in for added padding and protection so you are insulated against the occasional bit of loss and can continue to hit 12% overall. There is truth in going for the higher rate p2p loans 13-14% rather than the lower rate 8%-10%, think in the general thread of this forum there was a recent article showing how long term investments in p2p can be rewarding for those who take higher risk and in the event of a catastrophic financial meltdown the higher risk takers will be much better off anyway. Interesting read, pls spend 5 mins to have a look.
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Post by elephantrosie on Aug 7, 2017 18:35:37 GMT
are you guys still receiving interests on this loan?
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james100
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Post by james100 on Aug 7, 2017 18:47:43 GMT
Tranche A paid out OK on 20th last month....I'm not in tranche B though so can't help with that one.
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mikeh
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Post by mikeh on Aug 7, 2017 18:51:50 GMT
Yep. Both tranches (A and B)
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Post by elephantrosie on Aug 7, 2017 18:58:38 GMT
oh okay thats great. just been reading much about this thread and see everyone has been worried. i think this loan will be fine.
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jlend
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Post by jlend on Aug 7, 2017 19:35:42 GMT
oh okay thats great. just been reading much about this thread and see everyone has been worried. i think this loan will be fine. It is what it is now. I am confident moneything and Broadoak will do everything they can to get investors as much as possible. We will just have to wait and see if more money is required to finish the development and who will provide it, how long it will take, if any of the flat buyers have pulled out, if the 25 pecent deposits for the flats are still held by the solicitor and if the flats will have to be reduced in price to get a reasonably timely sale once completed. We don't know if any building work has been done since the adminstrators were appointed nearly two months ago. I'm guessing there is a lot of work going on behind the scenes. There must have been a reasonable cause for concern for administrators to have been appointed several months before the loan was due to be repaid rather than considering negotiating an extension of the loan. Although given the slow progress of the development over several months I am sure it was the right thing to do.
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jlend
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Post by jlend on Aug 7, 2017 20:16:55 GMT
I see Moneything investors put in circa 50 percent of the money for the loan, the other circa 50 percent coming from other broadoak investors.
I assume Moneything investors and the other investors are being treated equally - ie the other investors have also not received any updates over the last 2 months in this loan.
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elliotn
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Post by elliotn on Aug 8, 2017 0:43:30 GMT
oh okay thats great. just been reading much about this thread and see everyone has been worried. i think this loan will be fine. Really, unlike every other platform absolutley no update has been given, have you got some DD to share?
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Nomad
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Post by Nomad on Aug 8, 2017 12:41:46 GMT
oh okay thats great. just been reading much about this thread and see everyone has been worried. i think this loan will be fine. It is what it is now. I am confident moneything and Broadoak will do everything they can to get investors as much as possible. We will just have to wait and see if more money is required to finish the development and who will provide it, how long it will take, if any of the flat buyers have pulled out, if the 25 pecent deposits for the flats are still held by the solicitor and if the flats will have to be reduced in price to get a reasonably timely sale once completed. We don't know if any building work has been done since the adminstrators were appointed nearly two months ago. I'm guessing there is a lot of work going on behind the scenes. There must have been a reasonable cause for concern for administrators to have been appointed several months before the loan was due to be repaid rather than considering negotiating an extension of the loan. Although given the slow progress of the development over several months I am sure it was the right thing to do. Can MT indicate when an update may be forthcoming?
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archie
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Post by archie on Aug 8, 2017 14:19:01 GMT
It is what it is now. I am confident moneything and Broadoak will do everything they can to get investors as much as possible. We don't know if any building work has been done since the adminstrators were appointed nearly two months ago. I'm guessing there is a lot of work going on behind the scenes. There must have been a reasonable cause for concern for administrators to have been appointed several months before the loan was due to be repaid rather than considering negotiating an extension of the loan. Although given the slow progress of the development over several months I am sure it was the right thing to do. Can MT indicate when an update may be forthcoming? MT can only give an update when the administrators agree to it. Hopefully the August Broadoak updates will reveal some information.
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jlend
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Post by jlend on Aug 8, 2017 17:58:18 GMT
Companies House website confirms they did go into administration on the 9th as we have been told, but there is no more info there other than the name of the administrators as normal.
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jlend
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Post by jlend on Aug 8, 2017 21:24:24 GMT
Can MT indicate when an update may be forthcoming? MT can only give an update when the administrators agree to it. Hopefully the August Broadoak updates will reveal some information. That's interesting. Is that some regulation/law somewhere that Moneything as an agent of us as lenders can receive updates, but Moneything are legally not allowed to pass on the update to us? Given that the FCA have raised concerns about transparency in p2p it does feel a bit strange. Albeit I appreciate there may be a need for being careful during any commercial negotiation. I wonder what information Moneything are obliged to pass onto us when they know it as far as FCA expectations at least are concerned. As you say hopefully there is an update in August.
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