P2P: Ablrate

george4064

jamesd wrote: »

If you want to buy, look at the offers on the right side. A common offer might be 101% meaning that you pay the 100p per pound original issue price plus 1p on top. You will also pay the daily interest accrued since the last payment on the loan was made. You will get that back when the borrower makes their next payment, assuming they do. You can deduct the accrued interest you pay when buying from the taxable interest reported to HMRC. A 12% loan is really 1% a month so you will see a yield above 12% if you buy a new 12% loan at 101% soon after it is originally made. When buying you get the lowest of the prices offered, top to bottom. So if you buy £100 worth and there is £50 offered at 100.9% and £200 at 101% you will get all of the first 50 and 50 from the 200.

A person who wants to buy a loan has the alternative of making a bid. A common bid for oldish loans might be 99.5%. This means that you are saying that you will buy off anyone who is willing to sell to you with a 0.5% discount below what they originally paid, meaning they lose a little capital. The benefit for the is that it happens instantly. If they created an offer they would probably get a higher price but have to wait for a buyer to co e along.

Do you need to have the cash on account if you want to make a bid?

For example, could I make a bid for £1,000 at 99.0%, and I will deposit the required cash if the bid is partially/fully filled?

Trentenders

You need the cash on account

jamesd

When you place a bid enough money for the eventual purchase and an allowance for accrued interest will be deducted from your account balance. If you cancel a bid that will all be returned. If you reduce the amount a proportional part is returned. When a purchase is made any extra from the unused accrued interest allowance is returned and the rest is paid to the seller. You do need to have the money in your account to place the bid and you can cancel or edit a bid whenever you like if you want some of it back.

No interest is paid on the money in a bid, it's just sitting waiting for a seller to come along.

By contrast, a person who places an offer to sell does continue to accrue interest until their deal is done. I'll quite often make offers at prices I want that are well above where current deals are being done because it costs me nothing and if enough buyers come along to exhaust the supply of cheaper deals these will sell without me having to pay any attention to whether the price has yet reached one I'd be willing to accept.

Now is a pretty good time to be buying on the Ablrate secondary market. Lots of primary and secondary market availability at MoneyThing and new loans at Collateral means here's more loan supply than buyer availability at the moment, so offers below usual ones are around. That will probably change next week when a few million pounds of loans at various other places are due to be repaid and that money will probably take up much of the current supply excess. Similar uncommonly good buying conditions are around at MoneyThing and Collateral.

takesyourchances

New loan tomorrow morning, just read email from Ablrate for anyone looking a new loan on this platform.

I will add a bit to this loan as well.

Thanks

TheShape

Ablrate hasn't been interesting me as much lately. I think it's because most of the loans are/appear to be to a limited number of borrowers.

I will have a look at this one though, the loan is a decent size and the rate high.

takesyourchances

TheShape wrote: »

Ablrate hasn't been interesting me as much lately. I think it's because most of the loans are/appear to be to a limited number of borrowers.

I will have a look at this one though, the loan is a decent size and the rate high.

Getting started on Ablrate is a slow burner to build up loans and the new ones are not as often as MT and Collaterial. But I'll stick with it and add as they come up like this one.

I think this new one is worth putting into as you said a decent size and high rate also for a reasonable term.

I deposited my money there for tomorrow

With the terms being longer mostly on Albrate once you buy it can be left for a while which is good too and that allows time for dealing with re-investing other loan amounts for shorter periods on Collateral and MT etc. Thats my idea with these 3

TheShape

TheShape wrote: »

Ablrate hasn't been interesting me as much lately. I think it's because most of the loans are/appear to be to a limited number of borrowers.

I will have a look at this one though, the loan is a decent size and the rate high.

takesyourchances wrote: »

Getting started on Ablrate is a slow burner to build up loans and the new ones are not as often as MT and Collaterial. But I'll stick with it and add as they come up like this one.

I think this new one is worth putting into as you said a decent size and high rate also for a reasonable term.

I deposited my money there for tomorrow

With the terms being longer mostly on Albrate once you buy it can be left for a while which is good too and that allows time for dealing with re-investing other loan amounts for shorter periods on Collateral and MT etc. Thats my idea with these 3

My main three platforms too. Think my attention has been on the other two (esp Moneything) as I build my investment in the SM.

Have you remembered to tick your renewal boxes for your loans at MT?

takesyourchances

TheShape wrote: »

My main three platforms too. Think my attention has been on the other two (esp Moneything) as I build my investment in the SM.

Have you remembered to tick your renewal boxes for your loans at MT?

Yes there has been plenty going on with the other two and I added some more on those as well.

I was also waiting on fresh funds to add without going into my cash buffer much more at the moment and the Ablrate came along at the right time to add some more fresh funds into a new loan.

Yes I ticked the renewal on MT ok as well

Drp8713

Does anybody have an IF ISA with Ablrate?

I have just taken the plunge and think I am going to pop £2k in to start.

Do most of you do your own research on each loan or just invest in everything in very small chunks in order to reduce risk?

Drp8713

Sorry, another probably obvious question.

They have a shiny new secured loan to a car dealership paying 12% for 48 months.

However this is Tranche 2, Tranche 1 can be bought on the secondary market (all be it is now a 45 month loan) for 98.9% of face value and therefore a yield of 13.41%.

So why would I buy Tranche 2, instead of snapping up Tranche 1 at a discount, when the lender and therefore the risk is (I assume) the same?