Quick Overview of Folio Strategies?

[avid investor]

Hi all.  I have never traded on the Folio platform.  Frankly, I'm not sure of the typical expectation for selling notes on that platform.

Hi understand selling under-performing notes.  Buyers willing to buy them are going to discount their current value in hopes that the borrower will pay them off and the investor will get a large payday. 

For well-performing notes, what is a reasonable expectation for the sale price?  For example, if you have a $100 original note at 16% with a $90 balance, no late pmts, etc., what would a fair price typically be for this note that has 4 years to go?

Any help understanding the typical "sell" strategy would be appreciated.

Thanks!

[Fred]

My Folio strategy for both buy and sell is to price the notes at or near the minimum markup.

I have been archiving Folio notes for more than 1 year now.  Here is the historical minimum and average markup for Current and A+B grades notes:

https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fi.imgur.com%2FmQBgjij.png&hash=9fccc41b77a68d659c4326779732662f" alt="" class="bbc_img" />

Not a pretty picture, unfortunately. ;-)

[TravelingPennies]

Thanks Fred.  Can you give explain how the markup works?  In other words, can you show me the math with a sample note?  I'm thinking that it must start with the remaining balance of the note, right?  Total newbie on this.  FYI, I am looking at selling.

[AnilG]

https://forum.lendacademy.com/index.php?topic=3467.msg30812#msg88888888Quote"> from: avid investor on October 19, 2015, 01:35:24 PM

[TravelingPennies]

I get it Anil, thank you.  Basically, you are starting at outstanding principle value and going down from there based on the current perceived value of the ROI.  Makes sense.

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=3467.msg30823#msg88888888Quote"> from: avid investor on October 20, 2015, 11:43:21 AM