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Post by spareafewcoppersguv on Mar 13, 2017 8:09:54 GMT
Three of the Gloucester loans due to be defaulted today under the -180 day rule, with the other three tomorrow. That will create rather a scary large list of defaulted loans totalling over £8M! No surprise to people to pay attention obviously, but will probably still give quite a few investors a nasty shock ..... and put off lots of potential new investors...
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Post by geraldine1210 on Mar 13, 2017 8:51:50 GMT
Three of the Gloucester loans due to be defaulted today under the -180 day rule, with the other three tomorrow. That will create rather a scary large list of defaulted loans totalling over £8M! No surprise to people to pay attention obviously, but will probably still give quite a few investors a nasty shock ..... and put off lots of potential new investors... The last one was day 181, so might be Tuesday and Wednesday.
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elliotn
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Post by elliotn on Mar 13, 2017 8:55:34 GMT
The upside is that the inattentive and the new may not even look and the available loans therefore look better by default.
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jomantha
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Post by jomantha on Mar 13, 2017 9:42:38 GMT
Even as a new investor and before the new rules I never understood why people were buying overdue loan parts.
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pom
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Post by pom on Mar 13, 2017 10:18:22 GMT
Even as a new investor and before the new rules I never understood why people were buying overdue loan parts. 12%!! Provision fund!! Nobody's ever lost anything !! But yeah me neither. There is probably an argument that there's nothing particularly wrong with an overdue loan (especially as bridging loans rarely pay on time, sometimes early, often late) if it's a loan with good security, good exit plan (with clearly understood reasons for the delays etc) and you're prepared to hold it to term. Or you could perhaps argue that they're more likely to repay sooner than some of the longer dated ones. But unless you are then going to hold it to the hopefully not so bitter end, why buy something that will then be less popular?
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elliotn
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Post by elliotn on Mar 13, 2017 10:53:31 GMT
Even as a new investor and before the new rules I never understood why people were buying overdue loan parts. Hopefully Glouc are funded less by duped newbies than risk taking investors with deep pockets trying to maximise yield, the relatively small amounts available may suggest they're not easily panicked and are holding to conclusion. SS have a good record of returning lenders' funds although this is on a tiny sample of 'forced' sales. Seems Glouc are currently being marketed for 4M, barely abover capital of 3.7M and the coffers just took a beating bailing out 020 so it is a high risk strategy.
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