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Ablrate Secondary Market

Why have a Secondary Market?

When looking at a loan one of the things a lender will be assessing is ‘do I want to commit my capital for this period of time?’

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. That is the function of the secondary market, a place where members of our community buy and sell loans.

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.

Who buys and Sells?

Lenders just like you. The community provides its own liquidity with no cash input from us and has traded over *£8 million since it was launched. You simply offer loans you own to the community at a price you would like them to pay for your capital. If you would like to buy loans you simply list the price you are willing to pay for the capital.

The market works very much like a stock market where the best bid is always shown and the best offer. You can simply input the amount you would like to buy (or sell) and our system will present you with a trade ticket detailing the transaction. You choose whether to go ahead from there.

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How much is bought and sold?

The market trades about £250,000 to £300,000 per month and this is increasing all the time. We are often asked how long it would take to sell out of a loan.

There is no simple answer as it based on the interest rate, the security and the amount your are selling. However, as an example, if you are selling £10,000 of loans at par (I.e 100% – £100 for £100 of capital) or a discount from par, then under a normal market it would take approximately 48 hours.

*There is no guarantee of liquidity in the Secondary Market as it is driven by Lender demand. This data is historical and provided for information purposes only. Past liquidity provides no guarantee of future liquidity in the market. The data shows the aggregate amount of Sales Requests that have been matched since the market was launched. Loans can be offered at a discount or premium and although the rate of interest paid by the borrower is constant (i.e the prevailing rate) your actual return could be less or more than this figure, so please familiarise yourself with the Secondary Market by reading the FAQ, read the risk warnings and read the confirmation information which appears before you execute a trade.