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Author Topic: Was this a Good Deal or What?

  • Posts: 21
Was this a Good Deal or What?
OP: September 12, 2017, 11:00:00 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?

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  • Posts: 32
Was this a Good Deal or What?
#1: September 13, 2017, 11:00:00 PM
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.
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  • Posts: 7
Was this a Good Deal or What?
#2: September 16, 2017, 11:00:00 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? 
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