P2P: Ablrate
Comments
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Just a curiosity... how does Ablrate handle currency fluctuations?
Say they advertise an aircraft loan at 10%. Ablrate investors deposit in GBP, but the price of the aircraft is in USD and the repayments are too. Let's say the dollar weakens by 20%. Now the investors are only getting a yield of 8% in GBP terms and there isn't enough capital to pay them back at the end.
In the bond markets that's a risk investors face, but I don't see how it works in the Ablrate market which is strictly GBP. Do they fully hedge all of the currency risk?
There is a five year container loan where the new buys are in dollars with, I think, no hedging normally, but those are many short term deals and those involved do know about currency issues and would protect if it seemed sensible. At the moment they have said that currency and steel price issues combined with sale prices make leasing more profitable and less risky than buying for resale, so plan to do that until things change. They also just returned about 19% of the originally invested money with the 15%+ interest on top and plan to return some more. Just because they don't want the money if they can't use it effectively.0 -
Bought into 3 loads this weekend on the SM on Ablrate so slowly getting a few built up. The site works well and got used to their system now, I will keep my eye out for new up coming loans. This is keeping me busy between MT and Collateral as well looking out for them all0
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Yes, do remember that the secondary market is the way to get invested quickly at Ablrate. Then do more as new loans come up, a few a month.
You can get invested pretty quickly in 11% and loans at MoneyThing but mainly when a new loan will be going live in the next day or so. Then people do some selling and if you're fast you can buy. I bought about £14k over the last week that way. But Ablrate usually has those rates or better on its secondary market with less trouble. Worth using both places, though.0 -
Yes, do remember that the secondary market is the way to get invested quickly at Ablrate. Then do more as new loans come up, a few a month.
You can get invested pretty quickly in 11% and loans at MoneyThing but mainly when a new loan will be going live in the next day or so. Then people do some selling and if you're fast you can buy. I bought about £14k over the last week that way. But Ablrate usually has those rates or better on its secondary market with less trouble. Worth using both places, though.
thanks. i am on MT, collateral and ratesetter. i am waiting for new loans to pop up on ablrate.
did you buy 14k worth of loans on secondary market of ablrate?Another night of thankfulness.0 -
That was at MoneyThing. Looks as though there might be four new loans at Ablrate next week.0
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one question about ablrate. for those selling their loans on secondary market at less than 100% price, does that mean that they will be losing money?
just trying to put myself in the same situation hypotheticallyAnother night of thankfulness.0 -
elephantrosie wrote: »do you think p2p investment is riskier than stocks and shares?0
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elephantrosie wrote: »one question about ablrate. for those selling their loans on secondary market at less than 100% price, does that mean that they will be losing money?
just trying to put myself in the same situation hypothetically0 -
I have noticed that neither of the p2p websites that I have visited/ used actually give us information of the borrowers past credit history ie. returning history.
or is it me only who couldn't find this info on the websites?Another night of thankfulness.0
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