Author Topic: Was this a Good Deal or What?  (Read 2385 times)

JohnnyP

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Was this a Good Deal or What?
« on: September 13, 2017, 07:15:37 PM »
I recently put a bunch of loans for sale at 10% premium, not thinking much would happen. To my surprise, I had a bunch of F and G notes that ended up selling. These were never late with flat or rising trends that were roughly 40 months old.

Now, I wonder how this could be a good deal for the buyer. These notes returned roughly 8 percent up to now because they were in the "good ol' days" vintage. They likely return more now because they have such a good repayment history. Still, with the possibility of repayments and all, could this possibly be a good deal for the buyer?




apc3161

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Re: Was this a Good Deal or What?
« Reply #1 on: September 14, 2017, 09:12:28 AM »
I stopped buying notes on folio with any markup. The frequency of pre-payments was just too high, especially since LC likes to poach their own borrowers with refinance offers.

Rhonda9080

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Re: Was this a Good Deal or What?
« Reply #2 on: September 17, 2017, 08:24:17 PM »
Lucky you! As a buyer, my experience with secondary market has been good (23+ % returns on folio notes!!!) but I wish I could increase my sales of non-seasoned notes. I'm getting mediocre sales at abt 2.50 markup - but these are my falling credit or unseasoned notes so maybe I should be content?