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Author Topic: 50% Discounted note?

F
  • Posts: 13
50% Discounted note?
OP: June 21, 2016, 11:00:00 PM
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?
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f
  • Posts: 132
50% Discounted note?
#1: June 21, 2016, 11:00:00 PM
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. 
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  • Posts: 300
50% Discounted note?
#2: June 21, 2016, 11:00:00 PM
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.
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