Author Topic: 50% Discounted note?  (Read 2209 times)

Fudgenut

  • Newbie
  • *
  • Posts: 47
    • View Profile
50% Discounted note?
« on: June 22, 2016, 10:49:07 AM »
I bought a note yesterday from Loan ID # 55574423 for $11.26 ($22.19 principal remaining).  It appears to be on time and has 10 completed ontime payments.  Am I missing something or perhaps they typo'ed the price?

fliphusker

  • Sr. Member
  • ****
  • Posts: 463
    • View Profile
    • Email
Re: 50% Discounted note?
« Reply #1 on: June 22, 2016, 11:35:13 AM »
Looking back through Peer Cube, there is only one other instance of that loan being sold for a discount.  That discount is only -1.18.  You are not missing anything in that note, unless for some reason I am too.  Going to make the assumption that whoever put it on, was a mistake to set it that low. 
Too lazy to figure out the YTM, but it must have been pretty huge. 

AnilG

  • Hero Member
  • *****
  • Posts: 1123
    • View Profile
    • PeerCube
Re: 50% Discounted note?
« Reply #2 on: June 22, 2016, 11:47:51 AM »
You got lucky. The seller have been trying to sell this note since October at par or slight discount. Pity that s/he sold the note at 50% discount right when Fico went up after being down since loan was issued. Must have been case of fat finger or bad algorithm/code.
---
Anil Gupta
PeerCube Thoughts blog https://www.peercube.com/blog
PeerCube https://www.peercube.com