Author Topic: Where did these $1000 notes come from?  (Read 5855 times)

lender_john

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Where did these $1000 notes come from?
« on: December 16, 2012, 12:22:35 AM »

So looking at FolioFN I see quite a lot of $1000 or $2000 notes for sale.

All of these notes went on sale in the last few days and as far I can tell its well over $600,000 worth..

I don't want to read too much into this, but it does seem like either an institutional investor or a fairly wealthy individual is trying to sell a large portfolio.

yojoakak

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Re: Where did these $1000 notes come from?
« Reply #1 on: December 16, 2012, 02:13:53 AM »
A lot of nice notes there, but a 0.06% discount ain't exactly a Fire Sale.
« Last Edit: December 16, 2012, 02:24:49 AM by yojoakak »

Zach

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Re: Where did these $1000 notes come from?
« Reply #2 on: December 16, 2012, 10:02:36 AM »
It surprises me that investors who may want to seek liquidity in their notes before maturity don't do the smart thing by splitting their notes into smaller denominations by placing seperate orders....It will be hard to find a buyer for any note larger than $100-200.

While it requires more work, its a better strategy so you're not locked into either giving a large discount to sell those huge principal balance notes or not being able to unlock the cash in the note.

Any other thoughts on this? Any investors who invest larger amounts per note that have any input on this?

william

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Re: Where did these $1000 notes come from?
« Reply #3 on: December 16, 2012, 12:08:56 PM »
Yea that is what I do with every note above $25 even the $50 notes. While it is a lot more work it is worth it when the notes sells in less than a day.

lender_john

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Re: Where did these $1000 notes come from?
« Reply #4 on: December 16, 2012, 12:46:51 PM »
A lot of nice notes there, but a 0.06% discount ain't exactly a Fire Sale.

I'm certainly not trying to suggest that there is some problem that we should all be aware of that could be causing this investor(s) to sell their portfolio.

I just thought it was fairly unusual since it is over a half million in notes.. Based on the rarity of 1000 dollar notes for sale and the fact that they all went on sale at the same time and for the suggested (principal and interest) price, I assumed that it was a single investor.

graceful

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Re: Where did these $1000 notes come from?
« Reply #5 on: December 16, 2012, 03:15:11 PM »
On Prosper, you can make multiple smaller investments, but when the bidding ends your total is bundled together into one lump sum. So there is no way to "break up" your investment into little pieces for future sale on FolioN.

I'll venture another guess. There is building demand for P2P in states where investors may not participate on Prosper or Lending Club. I'll bet some of the institutional investors are trying out flowing notes to FolioN to see whether they can make a market. If it works, they'll start messing with the spread to make money. This is the time of year the IRA contributions start coming in, and P2P could take a bigger piece of those cash flows because the credibility has been building this year.

Graceful

yojoakak

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Re: Where did these $1000 notes come from?
« Reply #6 on: December 16, 2012, 04:29:13 PM »
A lot of nice notes there, but a 0.06% discount ain't exactly a Fire Sale.

I'm certainly not trying to suggest that there is some problem that we should all be aware of that could be causing this investor(s) to sell their portfolio.

I just thought it was fairly unusual since it is over a half million in notes.. Based on the rarity of 1000 dollar notes for sale and the fact that they all went on sale at the same time and for the suggested (principal and interest) price, I assumed that it was a single investor.

It is unusual. And I agree it looks like a single investor. And they may be trying to sell their entire portfolio, but they're not trying very hard. ;)

For comparison, I usually have my entire (though much smaller) portfolio up for sale at any given time. But not at markups that will get anyone excited. I just find I prefer the Folfiofn interface for keeping track of my notes. (Not that Foliofn's interface is so great, it's just that LendingClub's is that much worse.)

It sure would be nice if Foliofn reported information about what's getting bought and sold like, you know, a real market.
« Last Edit: December 16, 2012, 04:32:56 PM by yojoakak »

faeriering

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Re: Where did these $1000 notes come from?
« Reply #7 on: December 16, 2012, 07:45:13 PM »
On Prosper, you can make multiple smaller investments, but when the bidding ends your total is bundled together into one lump sum. So there is no way to "break up" your investment into little pieces for future sale on FolioN.

I'll venture another guess. There is building demand for P2P in states where investors may not participate on Prosper or Lending Club. I'll bet some of the institutional investors are trying out flowing notes to FolioN to see whether they can make a market. If it works, they'll start messing with the spread to make money. This is the time of year the IRA contributions start coming in, and P2P could take a bigger piece of those cash flows because the credibility has been building this year.

Graceful

You're absolutely right Graceful!

When you put in separate orders for the same note on LC, the amounts get aggregated when the loan issues.

yojoakak

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Re: Where did these $1000 notes come from?
« Reply #8 on: December 16, 2012, 07:53:10 PM »
When you put in separate orders for the same note on LC, the amounts get aggregated when the loan issues.

That has not been my experience. You just have to make sure you Place the order (View Order > Continue) before you invest in the loan a second time.
« Last Edit: December 16, 2012, 10:21:01 PM by yojoakak »

DanB

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Re: Where did these $1000 notes come from?
« Reply #9 on: December 17, 2012, 10:50:02 PM »
How old are these notes?

yojoakak

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Re: Where did these $1000 notes come from?
« Reply #10 on: December 18, 2012, 06:06:08 AM »
How old are these notes?

A lot of them aren't more than 2 or 3 months old, but some of them are 15 to 20 months old.
« Last Edit: December 18, 2012, 08:43:25 AM by yojoakak »