Author Topic: Folio Folks - Remind me  (Read 6820 times)

AmCap

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Folio Folks - Remind me
« on: April 23, 2013, 07:52:23 AM »
What is your tolerance level for premiums on relatively young notes - I know there's been previous discussion on this but I can't recall the sense of the body...

Zach

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Re: Folio Folks - Remind me
« Reply #1 on: April 23, 2013, 08:41:54 AM »
I don't purchase any notes on Folio currently, so I don't know if this is as relevant based on the changes in the market conditions on the platform, but the max I would pay of a premium is 3% - period.

The age didn't really matter to me as much, but it helps if the notes is beyond the 10 month default stretch...

lender_john

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Re: Folio Folks - Remind me
« Reply #2 on: April 23, 2013, 11:00:41 AM »
I generally prefer notes where the premium does not exceed the interest due at next payment. So usually no more than 1-2%. However I do occasionally buy notes with a higher premium and I often sell notes at a much higher premium

Fred

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Re: Folio Folks - Remind me
« Reply #3 on: April 23, 2013, 03:49:31 PM »
In the good ol days, borrowers paid 3% for prepayment penalty.  So 3% premium is my target.

yaoyao

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Re: Folio Folks - Remind me
« Reply #4 on: April 24, 2013, 10:48:50 AM »
I purchases the notes with markup/down less than 0.5%.  I used to set interest range between 20% and 26% and could still find plenty of notes to invest in, however, since last couple of months, I had to lower the low range to 17% and sometimes still couldn't find notes to invest in.

SarahV

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Re: Folio Folks - Remind me
« Reply #5 on: April 25, 2013, 01:34:13 AM »
For a great note, 3% over principal is my absolute cap. For a good but not great note, 2%.

New Jersey Guy

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Re: Folio Folks - Remind me
« Reply #6 on: April 25, 2013, 05:55:38 PM »
"For a great note, 3% over principal is my absolute cap. For a good but not great note, 2%."

Depends on the grade, too.  I looked at a note for like 2.5% over yet the YTM was a mere 4 and-some-odd percentage.  "Whaaaaat?"  When I looked, it was an A1 at 6%.  Not worth it.

Typically when paying 3% over principle, it better be a damn good C/D/E note. 
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

AmCap

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Re: Folio Folks - Remind me
« Reply #7 on: April 27, 2013, 09:26:16 AM »
I typically sell around 4%...which I think I'm ok with because I don't want my notes to fly off the shelves, if you will.

cjayb

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Re: Folio Folks - Remind me
« Reply #8 on: April 29, 2013, 09:30:57 AM »
For loans under 15%, I usually mark it up 2.5-3% depending on how fast I want it to sell.

For over 15%, I mark it up 4%.

yojoakak

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Re: Folio Folks - Remind me
« Reply #9 on: April 29, 2013, 10:24:29 PM »
I recently sold a $30 note for $50.

So it appears SOMEONE has got some major tolerance.

SarahV

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Re: Folio Folks - Remind me
« Reply #10 on: April 29, 2013, 10:57:08 PM »
A couple of times I've been running IR filters and I accidentally bought a note for $25.50ish thinking it was newly issued - but it was from my 3-6 months old note filter, so a much higher markup than I was thinking. People make mistakes and pay too much by accident, it happens. 

AmCap

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Re: Folio Folks - Remind me
« Reply #11 on: April 30, 2013, 08:49:45 PM »
I recently sold a $30 note for $50.

So it appears SOMEONE has got some major tolerance.

I mean...there are mistakes, and then there are mistakes...

Fred

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Re: Folio Folks - Remind me
« Reply #12 on: April 30, 2013, 09:47:50 PM »

AmCap

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Re: Folio Folks - Remind me
« Reply #13 on: May 01, 2013, 12:57:27 AM »
What's a couple zeros here and there to make it worth our hourly billing rate in the end, really...