sj
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Post by sj on Nov 14, 2018 11:28:05 GMT
Now due to be relaunched as 2 tranches - "A" at 12%, "B" at 16%, with A taking priority over B in the event of a default.
Yeah, because that worked out SO WELL for Birkenhead Tranche B holders speaking of which, there's no signs of further recovery on that so it looks like a 100% wipeout. Makes Lendy look good!
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jonno
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nil satis nisi optimum
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Post by jonno on Nov 14, 2018 11:40:26 GMT
Apparently they have been listening to "feedback from lenders" !!
Ok, it's official: the lunatics have finally taken over the asylum
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archie
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Post by archie on Nov 14, 2018 12:01:27 GMT
Does tranche A interest take priority over tranche B capital?
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sarahcount
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Post by sarahcount on Nov 14, 2018 12:03:23 GMT
Now due to be relaunched as 2 tranches - "A" at 12%, "B" at 16%, with A taking priority over B in the event of a default.
Yeah, because that worked out SO WELL for Birkenhead Tranche B holders speaking of which, there's no signs of further recovery on that so it looks like a 100% wipeout. Makes Lendy look good! This will be an interesting one to follow.
Traditionally B loans sell more quickly than A loans. I've seen this on LI and ABL. FS have been able to shift supplementary loans. Even Ly second charge loans moved more quickly on the SM than the senior debt.
Whether the apparent attraction of 16% encourages MT lenders to overlook their painful experiences of Birkenhead remains to be seen.
Getting loans away is more of a challenge for platforms nowadays so I can understand MT having another try at split rankings. If the loans repay then everyone will be happy. If there is a default then we will hear a lot from the tranche B investors.
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SteveT
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Post by SteveT on Nov 14, 2018 12:06:10 GMT
Does tranche A interest take priority over tranche B capital? The new loan details refer to the priority laid out in the Lender T&C's (10.7 and 10.8) Basically, the sequence in a recovery situation is: (Recovery expenses) Tranche A capital Tranche B capital Tranche A interest Tranche B interest (MT fees)
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dovap
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Post by dovap on Nov 14, 2018 12:08:44 GMT
Interest in arrears tranche b
what could go wrong
jeez
still should be good for the rinse and repeat 'fund in the hope of being pulled' erm investors I guess
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Post by Badly Drawn Stickman on Nov 14, 2018 12:30:43 GMT
I suppose the fairly obvious question is what happens if only one tranche fills.
Must admit I see opportunity here. Tranche A is obviously more attractive than the initial offering. Tranche B seems like a pure gamble, then again with a newly modified secondary market looming. decisions, decisions, decisions.
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averageguy
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Post by averageguy on Nov 14, 2018 12:33:33 GMT
I suppose the fairly obvious question is what happens if only one tranche fills. Must admit I see opportunity here. Tranche A is obviously more attractive than the initial offering. Tranche B seems like a pure gamble, then again with a newly modified secondary market looming. decisions, decisions, decisions. One of the things I like about with MT is that they are prepared to listen and be innovative. Loan A for me
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SteveT
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Post by SteveT on Nov 14, 2018 12:50:06 GMT
Interest in arrearstranche b what could go wrong MoneyThing / SophieThing , can you please clarify the "Interest in arrears" comment in the email? My understanding from the loan details is that 9 months' interest is still to be withheld by MT, but would now be paid out to lenders monthly (as usual), rather than the first 6 months being paid upfront. Not that the borrower is now to pay interest monthly in arrears.
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IFISAcava
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Post by IFISAcava on Nov 14, 2018 12:55:50 GMT
I suppose the fairly obvious question is what happens if only one tranche fills. Must admit I see opportunity here. Tranche A is obviously more attractive than the initial offering. Tranche B seems like a pure gamble, then again with a newly modified secondary market looming. decisions, decisions, decisions. 12% (+1% cashback) at 44% LTV 1st charge? You don't even get that on Proplend at 50% LTV. Suspect this will now fill, and could be quite quick given no bid limits.
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ton27
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Post by ton27 on Nov 14, 2018 12:57:00 GMT
I appreciate the efforts of Moneything to fill the loan but why no priority for those lenders who had already invested in the first attempt. It is likely it is not be needed even with unlimited bidding.
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IFISAcava
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Post by IFISAcava on Nov 14, 2018 12:59:00 GMT
I suppose the fairly obvious question is what happens if only one tranche fills.Must admit I see opportunity here. Tranche A is obviously more attractive than the initial offering. Tranche B seems like a pure gamble, then again with a newly modified secondary market looming. decisions, decisions, decisions. "Note that this loan will only be drawdown once both Tranche A and B loans have been 100% subscribed."
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Post by SophieThing on Nov 14, 2018 13:03:57 GMT
Hi steve, I have adjusted the language on the listing as it may have been a bit confusing. Interest is retained for 9 months and thereafter serviced monthly. Interest to lenders will be paid monthly in arrears, provided it has been received by the borrower (which is has been for the first part). Kind regards Sophie
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SteveT
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Post by SteveT on Nov 14, 2018 14:08:19 GMT
Early days, but interesting that demand for the 2 tranches is fairly balanced as a % of their size (A roughly 3x B in £ terms)
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Post by Badly Drawn Stickman on Nov 14, 2018 14:16:15 GMT
I suppose the fairly obvious question is what happens if only one tranche fills. Must admit I see opportunity here. Tranche A is obviously more attractive than the initial offering. Tranche B seems like a pure gamble, then again with a newly modified secondary market looming. decisions, decisions, decisions. 12% (+1% cashback) at 44% LTV 1st charge? You don't even get that on Proplend at 50% LTV. Suspect this will now fill, and could be quite quick given no bid limits. I suppose the question would still remain about the valuation, I think we have evolved past simply taking the figure given as gospel. I now think tranche A is possibly fairly safe (comparatively speaking). Tranche B is obviously a lot less safe, but using the cashback and an appropriate balance between A and B, factor in the interest for 9 months and a 'free bet' (again comparatively speaking) is an option for some.
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