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Not sure what the SP reaction here would be to Odey's news but what I would say is that someone has an axe to grind with Odey judging by the way the news broke, no lid on it. So this might not be the end of it.
If any news breaks with links between Odey's fund and potential market manipulation (even paid posters on BBs) that would be YUM!
The oddest statement I have read on the matter was the following from FT:
“It’s all in the court’s hands,” he told the Financial Times. “It was a long time ago,” he added.
https://www.google.com/amp/s/amp.ft.com/content/a7fb67d4-d8d6-4e20-9cac-562d34f32530
If I was accused of something I didn't do I wouldn't say it was a long time ago but say it never happened. I could be reading too much into this or the statement was twisted around by FT.
I found someone who actually uses the RateSetter platform and managed to get some information regarding it. I'll post it below in case someone else founds it useful considering Metro plans to buy them.
1) The original money on loan was ~£10k in the RateSetter Access market which is the least interest bearing. This was lent out in 100 loans contracts which in total amount to £10.6 million. The total loan book is about £800 million, I believe.
2) The loans fall in category of Asset, Property and Consumer with the loan type as Interest Only, Non-Amortizing and Amortizing respectively. In addition the Property loans are backed by security but the rest are not.
3) The interest paid to the lender was in the range 2.7-3.9% and that as a platform fee ["Including payments to the Provision Fund, RateSetter, partners and brokers? (p.a)"] was 0-28.8%. The weighted average interest paid to the lender was 3.04% and that as the platform fee was 5.49%.
4) So far only 2 loans defaulted representing about 0.8% of the loan book visible where their Provision Fund had to make payment on behalf of the borrower. It is not clear if the defaults were before or after CV and bad loans could obviously grow depending on the long term impact on the economy.
Seems to me that digital only banks will find it tough to grow in the SME segment due to lack of funding. Metro might be able to well out of this if it plays its cards right.
https://www.thetimes.co.uk/article/big-banks-cut-off-credit-to-smes-k2wcl75b6
Yes it will increase transactions but I thought first time buyers didn't pay stamp duty on the first £300k up to a value of £500k since late 2017. Not sure if I would buy at this stage before the market has corrected.
Anyway Nationwide seem to be happy to take on the riskier market so maybe they are not anticipating a large correction.
Nationwide seems to be back offering high LVT mortgages (up to 90%) targeted at first time buyers.
I think Metro cut its mortgage offering to 85% residential and 80% BLT. Not sure why Nationwide is going back into the high LVT market now.
https://www.google.com/amp/s/amp.ft.com/content/8e6b6a30-62c7-4c79-b0c8-e70eb9fa6ed2
J.P. Morgan Holdings RNS
New:-
% of voting rights attached to shares = 3.25%;
% of voting rights through financial instruments = 3.00%;
Total = 6.25%
Previous:-
% of voting rights attached to shares = 3.31%;
% of voting rights through financial instruments = 2.80%;
Total = 6.11%
Any thoughts on why they keep adjusting their position?
Some statistics to do with how banks handled BBLs can be found in the link below. Seems to me that HSBC, Starling and Tide have done exceptionally badly to service their existing and new costumers. IMHO a real egg on the face moment for BCR that awarded £100m and £60m to Starling and Tide (in collaboration with ClearBank) respectively to boost SME offering.
https://www.moneysavingexpert.com/news/2020/06/one-in-four-sole-traders-rejected-for-bounce-back-loans---mse-su/
Looking at the page:
https://www.ratesetter.com/investment-release-requests?_ga=2.235291399.748401868.1586875665-1005822810.1584629704
It seems that RateSetter if paying out people who want to dis-invest while paying interest to investors. I don't think the money they are paying out is from the PF fund (cash buffer) as it is far too much. So are they already selling the unsecured loan book to institutions?
I don't think metro is after the full £850m loan book. Maybe they just buy the platform and part of the loan book to provide liquidity for people who want to dis-invest and let the remainder run off.
I wanted to asked a few questions about the last couple of RNSs but didn't because of the arguments going on. Things seemed to have settled down again so here goes:
RateSetter:
I believe RateSetter is regulated by the FCA and any acquisition of it has to have prior approval from the FCA under UK M&A rules. Is that correct? Would the FCA allow a potential deal to go through even if it was planning to come down hard on Metro? If not, maybe Metro thinks that there would be a positive outcome on the investigation on them otherwise why would they bother.
Last TR1 for JPM:
1) Latest total voting rights were stated to be 5.19%. Voting rights attached to shares were stated to be 2.65%. Voting rights attached to financial instruments were stated to be 2.10%. These don't total to 5.19%. Did they just miss out the 0.43% under section B1 in the voting rights attached to financial instruments?
2) The following 2 fields don't make much sense in terms of the percentage of voting rights attached in section B2:
a) Cash-settled Equity Swap 30/06/2021 30/06/2021 Cash 3,273,718 0.00%
b) Cash-settled Equity Swap 02/07/2021 02/07/2021 Cash 228 1.68%
Are these just misprints in the RNS?
Theosus, "I'm still seeing this as too high to buy and too low to sell. (IMO)"
Aren't you in profit with your buy after the crash? You don't like where the company is going in terms of the BBL and then RateSetter deal. Writing about it on this BB won't change the mind of the board. I would sell if I were you and move on. Just my opinion.
Theosus, investors are just people who use the platform to lend money. The provisions book is just a capital buffer they use to make sure interest is paid regularly, not sure it would be enough for CV related credit loss so they seem to have reduced the interest rate. Some details can be found here:
https://www.ratesetter.com/invest/statistics