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Ablrate Secondary Market

Ablrate Secondary Market

Ablrate’s Secondary Market is where our community comes together to trade and buy loans.

Why have a Secondary Market?

The Secondary Market on Ablrate is an important part of the platform. While you should approach every loan like you will be in it for the entire term, it would be nice to be able to release your capital should you need to. Unlike plenty of other platforms, Ablrate offers you the opportunity to buy and sell p2p loans at a discount or a premium on our Secondary Market. it is basically an after-market for loans lenders have bought when they were launched on the platform first of all. Many lenders use the Secondary Market to diversify their portfolio across a number of loans and buy and sell out of those loans to diversify further.

If you are interested in joining Ablrate’s community, you can register within minutes and open an account free of charge.

How does the Secondary Market work?

The market runs on a ‘bid and offer’ system much like stock and bond markets. Here, people can offer loans they have for sale at a certain price and can also make bids to buy loans at a certain price. Similar to the stock market, the best bids and offers are always shown.

The process is automated, so if you like the look of a loan, and it is being offered at a price you are comfortable with, then you can create an offer. All you need to do is enter the amount you would like to buy and our system calculates what yield you will be getting (based on all the remaining cash flows and the price you are paying/buying at). Then, our system will present you with a trade ticket detailing the transaction.

It’s up to you to choose whether to go ahead from there.

If you are happy you can go ahead and execute that trade, our system will take care of everything else.  The financial settlement and the legal agreements will all be updated to reflect the new ownership structure of the loan as well as your account balance.

Secondary Market Overview

Placing a bid

If you would like to sit back and wait for
people to sell their loans to you, you can
simply place a bid. You will enter the
amount you want to buy at the price you
would like to pay and it will be listed
along with other bids from other lenders.

If someone owns that loan and is
attracted by the price you offered to pay
they can ‘hit’ your bid and automatically sell
to you at the price and amount you
inputted (or any amount below that)

Placing an offer

Do you own a loan and would like to
diversify (a great strategy) across a new
loan listed on Ablrate?

The simple
answer is to list some of that loan for sale,
at a price you would like to achieve.
If a lender would like to buy your loan they just
have to enter how much of your offer they
would like. Then, the Ablrate system takes care of
the rest automatically applying the proceeds
of the sale to your Ablrate account and
moving the loan from you to the new owner.

Buying an offer

When an offer is listed you will see
a list on the right hand side that is always
listed with the best offers first. You can
choose to buy all of the offers on sale or just
some. You don’t need to worry about clicking particular offers,  just input the amount you would like to buy.

Our system will calculate exactly the cost to
purchase those loans across, potentially,
multiple offers and will also show the return
that you will be getting.

Secondary Market Liquidity

The Secondary Market has consistently grown, however, please be aware that the liquidity in the market is totally dependent on there being willing buyers and sellers, so we cannot guarantee that past liquidity in the market will be a consistent feature in the future. Also, if you buy at a premium and a loan pays back early you may not get the yield that you were hoping for and you could, in certain circumstances, lose money.

For more information on the Secondary Market visit our FAQs page or feel free contact one of our experienced team members today.