mikes1531
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Post by mikes1531 on Oct 14, 2014 13:29:44 GMT
Hopefully the inflow of repayments will help shift some of the aftermarket backlog. It is encouraging to see the results of AC's firmer stance on some of the bridging loans. I'm sure you're right. But don't forget the boost to confidence, I'm thinking there will be increased flows of money into AC now. I think it may depend to a large extent on whether investors consider the sub-10% rates or high LTVs of recent investment opportunities to be an appropriate reward/risk ratio. We'll find out shortly.
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bigfoot12
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Post by bigfoot12 on Oct 14, 2014 14:31:42 GMT
I'm sure you're right. But don't forget the boost to confidence, I'm thinking there will be increased flows of money into AC now. I think it may depend to a large extent on whether investors consider the sub-10% rates or high LTVs of recent investment opportunities to be an appropriate reward/risk ratio. We'll find out shortly. If the new site is okay (ie. not worse than current) and several of the BLs redeem (including default interest) then I expect I will increase my exposure. I had planned to in any case but the large number of loans failing to pay back on time together with the new site halted my plans. I imagine I'm not alone. Most (all except 'Midlands Trade Finance Provider') of the loans have an LTV below 75% so I wouldn't call them high. The wind turbines at 10% used to sell very quickly, I expect that most of the 9.75% ones will sell once the BLs repay. Rates on a number of things seem to have fallen recently.
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mikes1531
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Post by mikes1531 on Oct 14, 2014 16:00:40 GMT
Most (all except 'Midlands Trade Finance Provider') of the loans have an LTV below 75% so I wouldn't call them high. The South Coast P&M loan has a LTV of 80%. The wind turbines at 10% used to sell very quickly... True. Then again, that was back when they were a novelty. Right now there are £3M of wind turbine loan units available, and a further £4M of underwriter holdings in wind turbine loans that have not drawn down yet. That may have changed the supply/demand ratio significantly. I expect that many people who would like to invest in wind turbines would prefer to have exposure to, and benefit from, the HMG guaranteed index-linked income stream they generate rather than simply lending to a developer and having no upside potential.
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niceguy37
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Post by niceguy37 on Oct 14, 2014 16:22:19 GMT
Most (all except 'Midlands Trade Finance Provider') of the loans have an LTV below 75% so I wouldn't call them high. The South Coast P&M loan has a LTV of 80%. The wind turbines at 10% used to sell very quickly... True. Then again, that was back when they were a novelty. Right now there are £3M of wind turbine loan units available, and a further £4M of underwriter holdings in wind turbine loans that have not drawn down yet. That may have changed the supply/demand ratio significantly. I expect that many people who would like to invest in wind turbines would prefer to have exposure to, and benefit from, the HMG guaranteed index-linked income stream they generate rather than simply lending to a developer and having no upside potential. And the risk of early repayment if circumstances improve e.g. after the turbine is up and running, and first FIT payment received, surely the risk level will be reduced, and the borrower might be tempted to refinance at a lower rate.
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mikes1531
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Post by mikes1531 on Oct 14, 2014 19:30:34 GMT
True. Then again, that was back when they were a novelty. Right now there are £3M of wind turbine loan units available, and a further £4M of underwriter holdings in wind turbine loans that have not drawn down yet. That may have changed the supply/demand ratio significantly. I expect that many people who would like to invest in wind turbines would prefer to have exposure to, and benefit from, the HMG guaranteed index-linked income stream they generate rather than simply lending to a developer and having no upside potential. And the risk of early repayment if circumstances improve e.g. after the turbine is up and running, and first FIT payment received, surely the risk level will be reduced, and the borrower might be tempted to refinance at a lower rate. How much better than 9.75% could they do? Would it be worth the hassle and fees involved in refinancing? Do AC impose early redemption charges?
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bigfoot12
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Post by bigfoot12 on Oct 14, 2014 19:55:00 GMT
How much better than 9.75% could they do? Would it be worth the hassle and fees involved in refinancing? Do AC impose early redemption charges? I'm not 100% sure, but I don't think there is a direct charge. But there are a lot of up front fees, which only make sense if they are spread over a loan period. They are probably paying more like 12% (excluding the upfront) by the time Assetz' cut (need oldgrumpy to tell me what to do with an apostrophe on rap spelling) and the agent's cut are included. As they are intending to refinance anyway after 3 years, I expect that there is a risk of refinancing early. Also by then, in many cases, there will be a large wind farm so I would expect they can do better (subject to rates rising more generally).
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mikes1531
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Post by mikes1531 on Oct 17, 2014 0:07:13 GMT
Sigmund Freud would be proud -- I think! Earlier this week, someone asked AC a question about this loan because they were having trouble interpreting what was written in an update. The answer was... They didn't really mean to say that, did they?  |
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bigfoot12
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Post by bigfoot12 on Oct 17, 2014 15:49:44 GMT
Most (all except 'Midlands Trade Finance Provider') of the loans have an LTV below 75% so I wouldn't call them high. And even Midlands Trade Finance Provider has an LTV of 75% (Actually 75.3%!)
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sl75
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Post by sl75 on Oct 17, 2014 16:11:28 GMT
Sigmund Freud would be proud -- I think! Earlier this week, someone asked AC a question about this loan because they were having trouble interpreting what was written in an update. The answer was... They didn't really mean to say that, did they? Clearly some punctuation was intended. Perhaps we should have a poll about which specific punctuation mark should have followed the "No" and how each might give some different meaning? (e.g. comma, dash, full stop, semicolon, exclamation mark, or something else)
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ilmoro
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Post by ilmoro on Oct 20, 2014 16:10:10 GMT
And Columbo's there again 'Just one more thing!' Update: Loan title issue, repayment during week, quicker than LPA, continuing patience etc  'And the tale goes on and on and on'Iron Maiden, Rime of the Ancient Mariner , based on poem by Samuel Taylor Coleridge |
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mark
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Post by mark on Oct 24, 2014 13:27:17 GMT
And Columbo's there again 'Just one more thing!' Update: Loan title issue, repayment during week, quicker than LPA, continuing patience etc 'And the tale goes on and on and on'Iron Maiden, Rime of the Ancient Mariner , based on poem by Samuel Taylor ColeridgeLoan Repayment 20th Oct 2014 at 17:00 You will be aware that the loan did not repay as expected on Friday. Although disappointing we are told that this is down to a property title issue holding up the new lender's completion of documentation. Whilst not ideal that this last minute hitch has again delayed redemption we are told that the issue is being ironed out in the early part of this week with expectation that loan will be fully repaid over the course of this week.Given we have progressed this far looking to refinance were we to reverse course now then this would only delay repayment to lenders further given timescales involved in appointing an LPA Receiver and then marketing the property for sale. As such, we will continue to speak to the borrower / introducer on a daily basis and update lenders immediately as soon as we have a definitive date for redemption. Thank you for your continuing patience in this matter. ................ So once again no payment and no update.
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oldgrumpy
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Post by oldgrumpy on Oct 24, 2014 13:49:44 GMT
Fret ye not.... there is still time today for the promised update (telling us of the next delay i.e failure of solicitors, accountants, lawyers etc to actually do their jobs in a reasonable and efficient way).  |
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j
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Post by j on Oct 24, 2014 16:24:02 GMT
Fret ye not.... there is still time today for the promised update........ 's flying pink pigs come to mind!
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oldgrumpy
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Post by oldgrumpy on Oct 24, 2014 22:21:01 GMT
Fret ye not.... there is still time today for the promised update (telling us of the next delay i.e failure of solicitors, accountants, lawyers etc to actually do their jobs in a reasonable and efficient way). Have faith....here it is: (e-mail 17:40) "Further to our update we have chased the borrower/introducer today as to why repayment has not yet been achieved ........Whilst we are not happy ........"
We can all relax now until next Tuesday (Diwali not an issue in this one as far as I know).
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mark
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Post by mark on Oct 25, 2014 10:02:12 GMT
Fret ye not.... there is still time today for the promised update (telling us of the next delay i.e failure of solicitors, accountants, lawyers etc to actually do their jobs in a reasonable and efficient way). Have faith....here it is: (e-mail 17:40) "Further to our update we have chased the borrower/introducer today as to why repayment has not yet been achieved ........Whilst we are not happy ........"
We can all relax now until next Tuesday (Diwali not an issue in this one as far as I know).
Another week and the same old tiresome excuses form Assetz Capital. Their toothless approach in dealing with this type of ongoing nonsense from borrowers such as this is becoming a joke. If, as many lenders had suggested on this forum and in emails to AC, would have issued the letter and instructed the LPA maybe the borrower would be pressured into ensuring repayment of their loan which is now FOUR MONTHS or so overdue. Regardless of the default interest that we may receive someday, I am also concerned by the lack of ability of AC, across all loans, in achieving repayments of loans. Loan extensions just seem to put on hold repayment problems and repeat defaults.
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