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Post by chielamangus on May 26, 2017 18:53:51 GMT
Have to say that I fail to understand why this loan isn't being snapped up. Couldn't have asked for a more positive update than was provided on 11th May (see activity tab) , it's effectively 12.5% when you factor in the 1% discount, and it offers some welcome diversification from property loans. Also imo AC are pretty good at keeping lenders informed unlike one or two competitors whose names I shan't mention ! , Hate to disillusion you (& thought someone else would have pointed this out before now) but a 1 per cent discount means the price paid is reduced while the interest rate remains the same. So if you buy £100 for £99 you would get £11.5 return per annum on your investment. And that is approx 11.62 per cent. Still, its better than 11.5 per cent
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Post by dan1 on May 26, 2017 19:07:20 GMT
Have to say that I fail to understand why this loan isn't being snapped up. Couldn't have asked for a more positive update than was provided on 11th May (see activity tab) , it's effectively 12.5% when you factor in the 1% discount, and it offers some welcome diversification from property loans. Also imo AC are pretty good at keeping lenders informed unlike one or two competitors whose names I shan't mention ! , Hate to disillusion you (& thought someone else would have pointed this out before now) but a 1 per cent discount means the price paid is reduced while the interest rate remains the same. So if you buy £100 for £99 you would get £11.5 return per annum on your investment. And that is approx 11.62 per cent. Still, its better than 11.5 per cent But that ignores capital gain does it not? And the effective yield including capital gain depends on the remaining term. I know nothing of this diamond loan (I'm not on AC) but if it had an outstanding term of 12 months then for your £100 investment you'd pay £99 and receive £111.50, a return (or is the correct term 'yield') of 12.63%. I think I recall a calculator posted by ABL, which includes a yield calculation.
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Post by gidoppp01 on May 26, 2017 19:11:46 GMT
I know nothing of this diamond loan (I'm not on AC) but if it had an outstanding term of 12 months then for your £100 investment you'd pay £99 and receive £111.50, a return (or is the correct term 'yield') of 12.63%. I think I recall a calculator posted by ABL, which includes a yield calculation. Get on AC dan1, you have nothing to lose to open an AC account.
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Post by dan1 on May 26, 2017 19:14:52 GMT
I know nothing of this diamond loan (I'm not on AC) but if it had an outstanding term of 12 months then for your £100 investment you'd pay £99 and receive £111.50, a return (or is the correct term 'yield') of 12.63%. I think I recall a calculator posted by ABL, which includes a yield calculation. Get on AC dan1, you have nothing to lose to open an AC account. I was (am) waiting for a decent cashback offer to appear!
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oldgrumpy
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Post by oldgrumpy on May 26, 2017 19:21:36 GMT
Get on AC dan1, you have nothing to lose to open an AC account. I was (am) waiting for a decent cashback offer to appear! You can whistle, mate! AC have just put up a new loan #477 for a building development to augment an existing one which will continue. Cash back? Nah! The rate offered to the same company for continuation of almost the same job has been "adjusted" from 12% to 8%, and if default occurs to them both, the 12%er gets paid out first. I've put out a feeler for some more of the original deal  .
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Post by chielamangus on May 26, 2017 20:02:15 GMT
You are right, and if I recall correctly I made the same omission a year or so back on a similar subject. One would have thought I would have learned by now.
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pikestaff
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Post by pikestaff on May 27, 2017 6:23:53 GMT
But that ignores capital gain does it not? And the effective yield including capital gain depends on the remaining term. I know nothing of this diamond loan (I'm not on AC) but if it had an outstanding term of 12 months then for your £100 investment you'd pay £99 and receive £111.50, a return (or is the correct term 'yield') of 12.63%. I think I recall a calculator posted by ABL, which includes a yield calculation. You are right, and if I recall correctly I made the same omission a year or so back on a similar subject. One would have thought I would have learned by now. is right only if the loan runs for 1 year. As of now there are approximately 53 months remaining, and the yield to maturity with a 1% discount is roughly 11.8%.
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Post by dan1 on May 27, 2017 6:40:36 GMT
You are right, and if I recall correctly I made the same omission a year or so back on a similar subject. One would have thought I would have learned by now. is right only if the loan runs for 1 year. As of now there are approximately 53 months remaining, and the yield to maturity with a 1% discount is roughly 11.8%. Yield to maturity not quite so attractive at 53 months remaining - unless that is you offload in a years time for par or a premium or if the loan repays early. A couple of loans on ABL have just been frozen (prevented from trading on SM) because they're due to repay early, which means that some of the folks who bought at a premium (they typically traded around 102-103%) may be looking at a loss (i.r. negative yield).
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
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Post by skippyonspeed on Jun 3, 2017 13:52:34 GMT
As Tesco say "Every Lidl Helps".
There is circa £200k @ 1% discount STILL available on a loan paying 11.5% with over 4 years remaining. Got to be the best deal on AC at the moment
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r1200gs
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Post by r1200gs on Jun 4, 2017 11:06:46 GMT
As Tesco say "Every Lidl Helps". There is circa £200k @ 1% discount STILL available on a loan paying 11.5% with over 4 years remaining. Got to be the best deal on AC at the moment Excuse the daft question but I'm new to this platform. How do I buy at the discount rate? I just know this will be a daft question. :-)
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oldgrumpy
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Post by oldgrumpy on Jun 4, 2017 11:09:33 GMT
You will automatically be allocated discount loan parts if they are still available. For peace of mind you can even specify a -1% discount when formulating your instruction. That way you won't get caught out paying full price if someone else buys all the cheap stuff just before you arrive.
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Post by chielamangus on Jun 4, 2017 11:33:26 GMT
I had assumed that the large amount of discounted loan available was due to one individual wanting (and expecting) to exit quickly for some specified purpose (as tonyr suggested). But why on earth would one individual maintain the large amount hanging over the market when it became clear it was not going to be snapped up? It's very existence dampens the market. Investors always seem to grab at loans with little availability and shun those they believe are not wanted by other investors. A more rational course, IMO, would have been to drip feed the market. Unless, of course, my initial assumption is wrong and there are actually quite a few people acting independently who want to exit quickly. Perhaps the lack of take-up is linked to the general constipation in most of the SMs at the moment - new loans keep coming through but are not matched by new investors or loan repayments on certain sites. I am fully invested and cannot invest in new loans or new old loans even if I wanted to. |
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
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Post by skippyonspeed on Jun 4, 2017 12:32:00 GMT
As Tesco say "Every Lidl Helps". There is circa £200k @ 1% discount STILL available on a loan paying 11.5% with over 4 years remaining. Got to be the best deal on AC at the moment Excuse the daft question but I'm new to this platform. How do I buy at the discount rate? I just know this will be a daft question. :-) If you select a loan from "Browse Loans" and hover over the "Available for instant investment" amount, it will tell you the range of discounts, if you click on the amount, a new box will open telling you actual amounts available for each percentage discount, as there could be several differing amounts, if you choose to buy you will get best deal automatically.
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dermot
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Post by dermot on Jun 6, 2017 17:42:27 GMT
There is still £193K left at 1% discount and I've had a few quid waiting for almost 3 hours but no bites taken yet.
Seems a bit sluggish.
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Post by elephantrosie on Jun 6, 2017 20:56:47 GMT
why would you only buy a few quids of a loan?
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