Folio Folks - Remind me

[AmCap]

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]

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]

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]

In the good ol days, borrowers paid 3% for prepayment penalty.  So 3% premium is my target.

[yaoyao]

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.

[TravelingPennies]

For a great note, 3% over principal is my absolute cap. For a good but not great note, 2%.

[New Jersey Guy]

"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. 

[TravelingPennies]

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]

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]

I recently sold a $30 note for $50.

So it appears SOMEONE has got some major tolerance.

[TravelingPennies]

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. 

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=1014.msg6607#msg88888888Quote"> from: yojoakak on April 29, 2013, 10:24:29 PM

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=1014.msg6659#msg88888888Quote"> from: AmCap on April 30, 2013, 08:49:45 PM

[TravelingPennies]

What's a couple zeros here and there to make it worth our hourly billing rate in the end, really...