Author Topic: My ANAR is down over 1% in less than a month...  (Read 9726 times)

balto21

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My ANAR is down over 1% in less than a month...
« on: June 20, 2016, 05:19:38 PM »
My WAAR is 16.2. Here is my Understanding returns: http://screencast.com/t/9v6QQrWX. My ANAR was 11.24% and now it is 10.17%.

Yes, I have more available cash now because supply has been low. Normally, I have from $0 - $90 on hand and now it is about $250. There was a time about a week ago that my available cash went above $400 so, maybe that is affecting the numbers but I have a mature account with about 50% of it invested in 36 month loans...

But this is the biggest ANAR drop in the shortest time since I have started. I am wondering if anyone else is seeing the same thing in their numbers.


Fred

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Re: My ANAR is down over 1% in less than a month...
« Reply #1 on: June 21, 2016, 10:31:47 AM »
I actually expected this to happen after LR departure.

On one hand, a lot of people in this forum worried about BRV, the loss of institutional money, and investors' fire sale on Folio.

On the other hand, I have been worried about borrowers that might have funny ideas to not making payments anymore.

storm

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Re: My ANAR is down over 1% in less than a month...
« Reply #2 on: June 21, 2016, 11:33:55 AM »
Cash drag is not factored into the ANAR calculation.  Yes, my ANAR has gone down in the past month, but not quite that much.  Hard to say if LC is just writing off a bunch of bad loans, or the underwriting is faltering, or the economy is tanking.

balto21

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Re: My ANAR is down over 1% in less than a month...
« Reply #3 on: June 21, 2016, 01:47:26 PM »
Cash drag is not factored into the ANAR calculation.  Yes, my ANAR has gone down in the past month, but not quite that much.  Hard to say if LC is just writing off a bunch of bad loans, or the underwriting is faltering, or the economy is tanking.

Hard to say :)

AnilG

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Re: My ANAR is down over 1% in less than a month...
« Reply #4 on: June 21, 2016, 02:21:00 PM »
You can bump up your NAR by adding cash to your account and buying new loans. More current and recent loans you have in your portfolio, higher the NAR. You can reduce your NAR by not re-investing monthly payments from existing loan in new loans or proceeds from sale of existing notes on secondary market at par or discount. Your portfolio NAR will decline as loans move toward terminal state of fully paid or charged off.
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dbailey75

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Re: My ANAR is down over 1% in less than a month...
« Reply #5 on: June 21, 2016, 03:51:47 PM »
On the other hand, I have been worried about borrowers that might have funny ideas to not making payments anymore.
2nd.

Fred93

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Re: My ANAR is down over 1% in less than a month...
« Reply #6 on: June 21, 2016, 04:15:27 PM »
I have been worried about borrowers that might have funny ideas to not making payments anymore.

You're thinkin' that many borrowers reads the financial press?   ;D

storm

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Re: My ANAR is down over 1% in less than a month...
« Reply #7 on: June 21, 2016, 06:48:01 PM »
On the other hand, I have been worried about borrowers that might have funny ideas to not making payments anymore.

That would be a stupid move.  Defaults stick on borrowers' credit report for 7 years.  Credit cards would raise their interest rates or cancel their cards, insurance premiums would skyrocket, and finding a new job would be difficult with a credit check.

rawraw

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Re: My ANAR is down over 1% in less than a month...
« Reply #8 on: June 21, 2016, 07:35:26 PM »
Yea, I don't think I've seen anything that people stopped paying their loans to banks during the crisis just because they were in trouble.  But maybe it does occur

You can bump up your NAR by adding cash to your account and buying new loans. More current and recent loans you have in your portfolio, higher the NAR. You can reduce your NAR by not re-investing monthly payments from existing loan in new loans or proceeds from sale of existing notes on secondary market at par or discount. Your portfolio NAR will decline as loans move toward terminal state of fully paid or charged off.
I think this is it. 

.Ryan.

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Re: My ANAR is down over 1% in less than a month...
« Reply #9 on: June 21, 2016, 07:38:56 PM »
On the other hand, I have been worried about borrowers that might have funny ideas to not making payments anymore.

That would be a stupid move.  Defaults stick on borrowers' credit report for 7 years.  Credit cards would raise their interest rates or cancel their cards, insurance premiums would skyrocket, and finding a new job would be difficult with a credit check.

These are the same people that think a loan at 24% is a good idea.

bobeubanks

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Re: My ANAR is down over 1% in less than a month...
« Reply #10 on: June 21, 2016, 08:03:20 PM »
That would be a stupid move.  Defaults stick on borrowers' credit report for 7 years.  Credit cards would raise their interest rates or cancel their cards, insurance premiums would skyrocket, and finding a new job would be difficult with a credit check.

There were 819,240 bankruptcy filings in 2015. That is about a 1/3 of a percent of the US adult population. Presumably the number of people who aren't worried about their credit score is bigger. Especially those who already have a low credit score.

Rob L

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Re: My ANAR is down over 1% in less than a month...
« Reply #11 on: June 21, 2016, 08:15:14 PM »
That would be a stupid move.  Defaults stick on borrowers' credit report for 7 years.  Credit cards would raise their interest rates or cancel their cards, insurance premiums would skyrocket, and finding a new job would be difficult with a credit check.

There were 819,240 bankruptcy filings in 2015. That is about a 1/3 of a percent of the US adult population. Presumably the number of people who aren't worried about their credit score is bigger. Especially those who already have a low credit score.

Think that percent is off a bit. In 2014 there were 238M adults and 78M children (0 - 18). Given 819k bankruptcy filings it's a little over 3%, not 33%. Might have slipped a digit there ... I seem to slip more of them all the time myself.

bobeubanks

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Re: My ANAR is down over 1% in less than a month...
« Reply #12 on: June 21, 2016, 08:23:31 PM »
Think that percent is off a bit. In 2014 there were 238M adults and 78M children (0 - 18). Given 819k bankruptcy filings it's a little over 3%, not 33%. Might have slipped a digit there ... I seem to slip more of them all the time myself.

My math was right: about one third of one percent (~0.3%)

Rob L

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Re: My ANAR is down over 1% in less than a month...
« Reply #13 on: June 21, 2016, 10:22:32 PM »
Think that percent is off a bit. In 2014 there were 238M adults and 78M children (0 - 18). Given 819k bankruptcy filings it's a little over 3%, not 33%. Might have slipped a digit there ... I seem to slip more of them all the time myself.

My math was right: about one third of one percent (~0.3%)

Yeah, told you I was slipping more digits. Read right past the "of a percent" part.

rawraw

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Re: My ANAR is down over 1% in less than a month...
« Reply #14 on: June 22, 2016, 03:14:40 AM »
That would be a stupid move.  Defaults stick on borrowers' credit report for 7 years.  Credit cards would raise their interest rates or cancel their cards, insurance premiums would skyrocket, and finding a new job would be difficult with a credit check.

There were 819,240 bankruptcy filings in 2015. That is about a 1/3 of a percent of the US adult population. Presumably the number of people who aren't worried about their credit score is bigger. Especially those who already have a low credit score.
Just because you are filing bankruptcy doesn't mean you aren't worried about your credit -- as a forum of net savers, I see how it's easy to assume bad outcomes means they didn't care.  And then even further, one of the largest categories of bankruptcies is medical, which even net savers may understand that dilemma.