Todays most liquidable portfolios
This topic has 7 voices, contains 8 replies, and was last updated by 
| Author | Posts |
|---|---|
| Author | Posts |
| May 24, 2011 at 1:22 pm #57683 | |
 Gabriella Day |
in todays economy what is the most liquidable portfolio to invest in? |
| May 31, 2011 at 11:45 am #57684 | |
 john pratt |
I think it depends on the strength of the buyer. Some folks seem to think buying from the issuer and having a strong legal model does the trick. Pay Day Loans are popular in some segments. Out of stat credit cards have a niche. High balance auto loans with docs have a place.
If I was advising a pure investment group I would suggest a mixed portfolio placed into an outsource platform that could handle the various types of paper. I would focus whrere my returns were the best but keep an open mind for the future. |
| October 4, 2011 at 5:27 pm #57685 | |
 mhotle |
Thanks for that “one size fits all” non-answer! |
| October 5, 2011 at 5:22 am #57686 | |
 SLR Mike |
mhotle, That one size fits all is the only answer your going to get for such a generic open ended question.
This question is asked several times on the boards, so I am surprised John even answered. The answer to your question is that there is no one “most liquid portfolio”. If there was, wouldn't we all be working it? Liquidity comes down to your shop, collectors, and processes. Granted the type of paper is important, but I have found that truly impressive collectors can get blood from stone, so to speak.
Hope that helps |
| October 5, 2011 at 6:13 am #57687 | |
 Mattea |
Gabriella, a number of the people I sell to love paper that is 2 to 3 years from chargeoff. The reason for this is because statistically it takes people about that long to get back on their feet after whatever life change caused them to default on their cards in the first place. They also tend to like balances that do not exceed $2000. A lower balance is easier for someone to pay off.Credit card files tend to be stable, though I have heard lots of people sing the praises of Payday files, they make me nervous. I'm assuming you are not planning on going legal on these accounts? If so that can be a whole other story. |
| October 5, 2011 at 6:33 am #57688 | |
|
SLR Mike |
I agree with Mattea. We like paper that is 2-3 years old simply because we find the clients with fresh charge off are still borrowing to pay bills/debts.
The biggest issue with older paper though is the debtors can be harder to find. This is important to consider when looking at average balances. It is one thing to spend 2 hours looking for someone to catch a $1,000 balance. It is another creature to spend that same 2 hours for $100-150 balance. |
| October 6, 2011 at 10:26 am #57689 | |
 Brian |
Most liquid would be a payer/ppa portfolio.
Before you chastise a long-standing member's reply (Pratt), perhaps you should learn how to ask the real question you need an answer to.
PS – most senior members here recognize you “one post, joined yesterday” posters who contribute nothing, but ask 100s of FAQs under different monikers.
Now it's math time. |
| October 14, 2011 at 7:34 am #57690 | |
 William Coshburn |
I think its obvious this is the single toughest question to answer. My follow up question would be , in anyone's experience, if someone was willing to invest with you up to $20-50k on student loans & credit card portfolios would they be in a decent price range for liquidation?
I know its tough and I really appreciate your opinions as I know its just that. I'm just curious if any of you have experience in purchasing at that level? I know all about the $1mil purchases and what not but if thats not realistic for a new entity should we just stick to cheaper pay day loans? |
| October 14, 2011 at 11:21 am #57691 | |
|
john pratt |
I would not spend all of my purchase money at one time. I would probably divide it into three purchases spaced over no more than 4 or 5 months.
Then the fun begins. I am too tired today to add the strategies I would follow then but you can call me next week and we can discuss it. |
You must be logged in to reply to this topic.