Quote Originally Posted by humvee View Post
So loans are always sold at exactly face value ?

It could be hard to sell some loans at face value quickly or at all. Eg 5 years @ 8% when there are alot of new loans going for 8.5 or 9%

What would happen if interest rates rise - you would not be able to sell loans without discounting - which I dont think you can do.
That's right about loans being difficult to sell at lower interest rates. But you never know, someone might not want to waste time in the bidding process and might still buy the loans at a lower rate especially if the bank interest rates are waaay lower. However, the loans with higher interest rates of say 9, 8.9, 8.95 etc could be lapped up in no time.

At least this is a start and a facility to bail out if required. No other company has it yet. So well done Squirrel Money! I am sure improvements will keep coming over time.