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Topics - jcurry6664

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Foliofn - LC / Why not buy notes with a premium???
« on: October 12, 2017, 01:22:08 PM »
I've been investing with LC for a while, and just recently started to think about trading notes on Folio.

I was thinking of buying 60 month notes with 12 - 18 payments left, filtering them to ensure they have never been late and have not dropped credit rate.  My thought is that if they haven't defaulted in the first 4 years and their credit is stable, there is a high probably they will pay off the loan.

The one question I have is why do I see so much advice to not pay a premium.  My thoughts are the premium gets rolled into the yield to maturity, so if I can get a higher yield, I should still be ahead.  What am I missing?

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