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Post by elephantrosie on Sept 3, 2017 11:16:26 GMT
List them so that i will be cautious to avoid them!
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james100
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Post by james100 on Sept 3, 2017 11:36:04 GMT
That will possibly vary according to what you mean by "defaulted loans" e.g.
- "officially" defaulted loans as defined/applied by individual platform definition?
- loans a platform knows has one/+ late payment?
- loans a platform knows has one/+ missed payment? (and by whose definition does a late payment become a missed payment?)
- loans a platform knows will definitely default in future even thought interest has been paid up front so the will not go into late/missed/default status for some time?
The technical term may be clear, but the relevant data point itself can sometimes be less so.
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Post by mrclondon on Sept 3, 2017 11:46:49 GMT
to add to the list by james100 - loans being repaid by parties other than the original borrower under an informal "gentlemans agreement" (would be hard to collect on if platform folded) - loans which are in technical default (e.g. breach of EBITDA or LTV covenants) but otherwise all payments are upto date - loans to companies which are currently facing strike off action by companies house I think another important consideration is individual lenders may well become aware of some of the issues listed before a platform does, and certainly before a platform has had chance to seek confirmation through their legal advisers. Such lenders may then attempt to sell on the SM long before a platform has a chance to suspend trade in that loan. |
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elliotn
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Post by elliotn on Sept 3, 2017 12:09:46 GMT
List them so that i will be cautious to avoid them! Only one I can think of is MT whose borrower they put into administration but still allowed trading - atm until prepaid interest runs out unlike Collateral who suspended trading whilst paying out remainder of intra-term interest - and have committed to updating their T&C to allow it. That assumes Ly are now pausing loans in 'dafault' (their definition) as announced. Typically you'll find other platforms pause the SM for the excellent list of technical defaults or other above.
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Post by elephantrosie on Sept 3, 2017 12:36:05 GMT
thanks all. my definition would be 'officially default' and 'definitely going into default' like the two on MT....
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