markr
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Post by markr on Jun 26, 2014 10:26:19 GMT
If anyone is bothered the second tranche of the R***gate property loan is live, £388k, A+, 7% fixed, 17 month interest only, 2% cashback. Bids are trickling in but no rush.
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wysiati
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Post by wysiati on Jun 26, 2014 12:13:24 GMT
There is still >£70k from tranche 1 on the secondary market.
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Post by ranjeb on Jun 26, 2014 12:19:11 GMT
Still better to get cashback than secondary market, although can't see this one filling tbh.
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wysiati
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Post by wysiati on Jun 26, 2014 12:27:18 GMT
Still better to get cashback than secondary market, although can't see this one filling tbh. Rather than being an alternative potential investment to the latest tranche 2, I think that the value of unsold loan parts from tranche 1 points and the repeat borrower status point to increased difficulty for any strategy of buying principally for cashback and then looking to (quickly) recycle funds.
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chrisf
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Post by chrisf on Jun 26, 2014 12:57:18 GMT
Yep, I also think this one may struggle to fill. What happens if it doesn't fill? Relist with 3% cashback? Relist at 8.0%?
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oldgrumpy
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Post by oldgrumpy on Jun 26, 2014 13:07:57 GMT
Let Santander fill in!
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Post by aloanatlast on Jun 26, 2014 13:28:07 GMT
There is still >£70k from tranche 1 on the secondary market. I expect there's plenty more to sell that isn't actually listed.
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Post by aloanatlast on Jun 26, 2014 13:29:48 GMT
Yep, I also think this one may struggle to fill. What happens if it doesn't fill? Relist with 3% cashback? Relist at 8.0%? FC will take it. What I think we don't know is whether and how they'll dump it.
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Post by GSV3MIaC on Jun 26, 2014 13:30:04 GMT
Yep, I also think this one may struggle to fill. What happens if it doesn't fill? Relist with 3% cashback? Relist at 8.0%? IIRC the second (and third) tranches are underwritten by FC, so if it doesn't fill FC will stump up the difference. Go re-read the bumf from the first tranche for the grizzly details.
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blender
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Post by blender on Jun 26, 2014 13:36:08 GMT
This will be interesting to watch. Is this the one which FC has guaranteed to fill in other ways if lenders do not?
Though there is much on the secondary market, there is just a thousand or two at a discount, up to 1.2%, and so much of it is opportunistic listing just hoping for the odd sale, rather than serious flipping. However, that 1.2% must detract from the new 2% for flipping, together with the lack of Autobid purchasers on primary and secondary markets.
The main problem seems to be that the second tranche is very close in time to the first (14th May drawdown).
This is a very ambitious loan for FC - the third tranche could be attractive.
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is
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Post by is on Jun 26, 2014 13:51:49 GMT
This will be interesting to watch. Is this the one which FC has guaranteed to fill in other ways if lenders do not? Though there is much on the secondary market, there is just a thousand or two at a discount, up to 1.2%, and so much of it is opportunistic listing just hoping for the odd sale, rather than serious flipping. However, that 1.2% must detract from the new 2% for flipping, together with the lack of Autobid purchasers on primary and secondary markets. The main problem seems to be that the second tranche is very close in time to the first (14th May drawdown). This is a very ambitious loan for FC - the third tranche could be attractive. I thought they were going to be staggered in 3M steps, as is more usual. Does anyone here know if FC has an open underwriter programme like Assetz does? Even if not, I am sure they have an arrangement with selected investors (as underwriting is mentioned in the docs, and they would not have own capital to back such a programme)
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Post by GSV3MIaC on Jun 26, 2014 16:51:46 GMT
'Not have their own capital'?? You did notice them raise £37m a few months back (or was is $?) .. not deliberately for this auction, I hope, but if they can't put their hands on the odd few hundred £k then I'd be seriously worried.
IIRC they did raise the capital to buy out at least one dodgy loan (went bad before first payment), so they do have a wallet.
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Post by davee39 on Jun 26, 2014 17:04:05 GMT
Saving Stream has live availability of bridging loans, and close to £3m pending, paying 12%. Assetz also pays more. My view is that if everyone is piling in, then its time to bow out. I do not consider 7% is adequate, and although I have not invested with Assetz they seem to this sort of thing better and at more agreeable rates. Meanwhile RS is boiling over with 5.0/6.4 for 3/5 years and a nice secure provision fund.
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Post by GSV3MIaC on Jun 26, 2014 17:47:04 GMT
Well with the 2% cash back it's slightly better than the headline 7%, but I still agree it is not particularly attractive, compared even to their earlier offerings in the property market. Think 'sit on the sidelines and heckle' may be best approach this time. 8>.
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markr
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Post by markr on Jun 26, 2014 19:32:22 GMT
Well, FC are so confident that it'll fill that they've listed another £500k property loan to go with it.
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