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Post by richardthe4th on Oct 23, 2016 12:57:56 GMT
Some of the loans on FC which are secured are described - 'all asset security'.
Is there anywhere i can find out what the LTV ratio is?
Thanks - sorry if this is a stupid question!
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am
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Post by am on Oct 23, 2016 13:15:00 GMT
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Post by richardthe4th on Oct 23, 2016 15:08:44 GMT
Thanks am!!
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nick
Member of DD Central
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Post by nick on Oct 26, 2016 20:11:53 GMT
Remember to apply a big haircut to any net book value (although even this is generous) to get near any reasonable recovery value in the event of default. In most cases, I would only subscribe value to property held. Other fixed assets (eg machinery, equipment etc etc) and working capital will often only be worth a small fraction of book value if the underlying business fails. A debenture is better than no security, but only really because you are at the top of the creditor pecking order.
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