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Post by GSV3MIaC on Oct 31, 2014 11:26:06 GMT
No time for a new graph, but the rates have kept moving the same way .. A+s are now selling from 9.9% to 10.9% in the top 500 parts (which is actually, they way FC truncate rates, anything up to 9.99% to 10.99%), with the top A sitting there at 13.1%, and part #500 still at 11.1(9, maybe)%. So why, oh why, would anyone be buying a C- at 14.9%?
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blender
Member of DD Central
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Post by blender on Oct 31, 2014 12:03:23 GMT
I think the figures for offers at par or better are the ones to follow and agree that better to buy the A+, A B at current rates. I have sold all C- and am disposing of C now, though buying property loans with the proceeds. 15% limit for C- and C needs changing, especially now that so many of the partial loans are the scraps from the table of the whole loan lenders.
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Post by GSV3MIaC on Oct 31, 2014 12:55:24 GMT
Maybe, although I'm the oddball who'd rather have a 13% A bought at a premium than a 10% one bought at par. Yes, there is early repayment risk, but afaict it's fewer than 10% of loans which repay early, and even most of those are not THAT early (and if rates go up, there'll be less incentive to repay early).
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blender
Member of DD Central
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Post by blender on Oct 31, 2014 13:48:13 GMT
Yes, but you know what you are doing.
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