|
Post by Deleted on Oct 20, 2016 13:54:09 GMT
as long as it clearly states " all tranches rank equally" otherwise they arn't
|
|
ali
Member of DD Central
Posts: 313
Likes: 311
|
Post by ali on Oct 20, 2016 14:06:34 GMT
as long as it clearly states " all tranches rank equally" otherwise they arn't Sorry @bobo, but I'm not sure that helps. Yes, you need to read the loan details carefully to make sure the tranches rank equal, but MT don't always use any particular form of words. As an example, MTAH367 says "**Please be aware that the land is valued at £1.6 million with two seperate tranches at pari passu.**" which has the same meaning, and in FP421 for example, it is implied by the wording, but there is no explicit simple statement to that effect (although the maths for LTV do make it unambiguous).
|
|
archie
Posts: 1,840
Likes: 1,843
|
Post by archie on Oct 20, 2016 14:15:46 GMT
as long as it clearly states " all tranches rank equally" otherwise they arn't Sorry @bobo , but I'm not sure that helps. Yes, you need to read the loan details carefully to make sure the tranches rank equal, but MT don't always use any particular form of words. As an example, MTAH367 says "**Please be aware that the land is valued at £1.6 million with two seperate tranches at pari passu.**" which has the same meaning, and in FP421 for example, it is implied by the wording, but there is no explicit simple statement to that effect (although the maths for LTV do make it unambiguous). Would it be fair to say if the interest rates are the same then they rank equally? Any exceptions?
|
|
|
Post by Deleted on Oct 20, 2016 14:22:24 GMT
Ali, you are right there are other words that mean the same thing, I just felt the presentation you were making was too simplistic (which I still do). Biter bit.
Archie, I wouldn't trust that at all, not because MT varies its views it just feels uncomfortable
My own view is that there are so many loans about why would you want to put more into multiple tranches anyway? Just wait a bit and another different loan will be along. Diversification is the route to low risk lending, not multiple loans to the same project.
|
|
ali
Member of DD Central
Posts: 313
Likes: 311
|
Post by ali on Oct 20, 2016 14:22:46 GMT
Sorry @bobo , but I'm not sure that helps. Yes, you need to read the loan details carefully to make sure the tranches rank equal, but MT don't always use any particular form of words. As an example, MTAH367 says "**Please be aware that the land is valued at £1.6 million with two seperate tranches at pari passu.**" which has the same meaning, and in FP421 for example, it is implied by the wording, but there is no explicit simple statement to that effect (although the maths for LTV do make it unambiguous). Would it be fair to say if the interest rates are the same then they rank equally? Any exceptions? No exceptions that I'm aware of, and different interest rates would certainly be very strong evidence that they don't rank equally, but I'm not so sure that the same interest rates would necessarily guarantee that they rank equally. MoneyThing?
|
|
archie
Posts: 1,840
Likes: 1,843
|
Post by archie on Oct 20, 2016 14:36:07 GMT
Ali, you are right there are other words that mean the same thing, I just felt the presentation you were making was too simplistic (which I still do). Biter bit. Archie, I wouldn't trust that at all, not because MT varies its views it just feels uncomfortable I only meant on MT, certainly wouldn't apply on some other P2P sites.
|
|
|
Post by wonder on Nov 17, 2016 10:01:39 GMT
Hi.
Sorry to ask something so simple, but ...
If I buy a bit of a loan that is not yet fully funded by other investors, does my interest start to accumulate immediately, or does it start to accumulate only when the loan is fully funded?
|
|
archie
Posts: 1,840
Likes: 1,843
|
Post by archie on Nov 17, 2016 10:08:53 GMT
Hi. Sorry to ask something so simple, but ... If I buy a bit of a loan that is not yet fully funded by other investors, does my interest start to accumulate immediately, or does it start to accumulate only when the loan is fully funded? Immediately. Note : Multi-tranche loans sometimes cannot be sold on the sm until all tranches funded. See the loan description.
|
|
spiral
Member of DD Central
Posts: 910
Likes: 456
|
Post by spiral on Nov 17, 2016 10:09:29 GMT
Immediately
|
|
|
Post by wonder on Nov 17, 2016 10:26:00 GMT
Thank you, Wise Persons!
|
|