Posted by Jess on November 29, 2001 at 14:27:31:
John, do you have any general guidelines for pricing a seasoned note vs. an unseasoned note for example? Assuming 2 notes were identical except for the fact that one of them has 1 year of on time payments and the other is a brand new note with no seasoning, what kind of difference in yield would you look for on something like that? In the end it's just a matter of what an investor is willing to pay and what the seller will accept, but if you are going to make an offer on a brand new note that was just created at closing, how much would you offer for that note as opposed to an identical seasoned note? ANN uses some type of formula for pricing notes - 30% based on equity, 40% based on payor's credit, 10% based on payment factor, 20% for seasoning, etc. Do you use something like this to grade notes you are bidding on?
- Seasoned Vs Unseasoned Michael Morrongiello 00:37:18 11/30/2001 (1)
- Re: Seasoned Vs Unseasoned Erny Matheson 20:49:05 8/09/2004 (0)
- Each note is unique to me John Behle 14:57:01 11/29/2001 (0)
- Each note is unique to me John Behle 14:57:01 11/29/2001 (0)