Enabling SM for Marine Containers

I believe it is being held up by the transaction discussed here.

Hmmm ... trading of defaulted loan is doable... but not ideal. We will have a chat internally and seek feedback from holders of the loan... but I a inclined to say no...on the other hand we are all grown ups...

Its a tough one, as there would be many regulatory issues to look at and assess. As an excercise I will run it past compliance.

Regards
Ablrate

It would certainly be interesting to see whether a hefty discount would give some investors more pause to think than a big red box at par 

I've done a fair bit of selling of defaulted and buying and selling of late loans over at Bondora. Works somewhat well, though some are inclined to offer excessive discounts or premiums. Premiums because of penalty interest rates and charges over there.

The biggest problem is changes of loan state, say having a payment made, which improves the prospects for repayment. What happens there is that automated or manual buying up of the offers based on the old state is done before those making an offer have had a chance to withdraw it, typically within tens of seconds of the change happening. As a partial defence against this I took to offering non-trivial discounts or reduced premiums only during times of the week when I knew that no changes were likely.

False markets and speed of news receipt would be two significant issues. I think that Ablrate would need to suspend the market a day or so before and at least a day after significant calendar events and after emailed or otherwise disseminated updates. Just to be sure that market participants have time to get the news and update their prices. Or maybe even cancel all offers to be more sure that none are based on stale status.

Research differences between lenders could also matter, for example to assess potential availability of assets. No insider trading issue here, I assume, since the info would normally be public records.

Of course insider trading potential would exist but that's nothing novel.

It's a nice idea. But who writes and continuously updates the prospectus, or whatever information is to be supplied on the current position, to a prospective debt purchaser, who may not be a current lender? Would that be the seller? Or another job for Ablrate? Or does the buyer just take a blind punt?

It might be necessary to make more substantial use of the admin notes section of the loan listing. The difficulty would be in providing enough information to prospective traders, while respecting the interests of the defaulted borrower.

Quite (Mason). It could only be Ablrate who could give the info. It would need to be up to date - a blow by blow account of the proceedings - and it would be visible to any prospective purchaser. Ablrate would then become the agent of the new purchaser under novation. It is a great idea but maybe asking too much of Ablrate for no return - unless there was a fee.

But It would be good to have a market for defaulted loan parts. Maybe an agreement between the lender and debt factors - facilitated/approved by Ablrate but not involving new contracts with Ablrate and Borrower. Sell your rights to recoveries, without exiting.