[SFC]

Any ideas on default/collection rates for A, B C and D paper?

[ADiamond]

A- Least
B- Less
C- More
D- Most



LOL, for real though - hard to just gauge as a generalization based solely off paper grades A - D.

[DTFdowntofund]

Lol

[SFC]

Thank you captain obvious!

[ADiamond]

Thank you captain obvious!

Hard to just say otherwise solely based on generalizations, ya know?

Someone would have to tell you based off of a specific book's performance - and it would vary from funder to funder. It'll depend on funding volumes & frequencies in each category, etc.

Example -Some books' "A" defaults may have a much higher default rate than "D", because if said funder is doing $500k - $1mm "A" deal fundings, and only doing $10k - $100k "D" fundings, the default RTR on "A" may be much higher in a situation like this where just one bad $1mm "A" deal makes up the RTR of like 10-20+ "D" deals.

Make sense?


So really, no one can just say - unless they're talking about a specific book.

Otherwise, THIS APPLIES:

A- Least
B- Less
C- More
D- Most


LOL!

[DTFdowntofund]

Hard to just say otherwise solely based on generalizations, ya know?

Someone would have to tell you based off of a specific book's performance - and it would vary from funder to funder. It'll depend on funding volumes & frequencies in each category, etc.

Example -Some books' "A" defaults may have a much higher default rate than "D", because if said funder is doing $500k - $1mm "A" deal fundings, and only doing $10k - $100k "D" fundings, the default RTR on "A" may be much higher in a situation like this where just one bad $1mm "A" deal makes up the RTR of like 10-20+ "D" deals.

Make sense?


So really, no one can just say - unless they're talking about a specific book.

Otherwise, THIS APPLIES:

A- Least
B- Less
C- More
D- Most


LOL!

Disclaimer: My "LOL" was directed toward to question, not the answer. You good.

[Franklin]

Approximate default rates:


Retail Bank - 2.5%

SBA loan - 4.7%

A Paper - 5 - 8%
B - 8 -12%
C - 12 - 20%

D - 22 - 28%


If a funder has a good collections practice, you can still get 20-40% of that money back

Industry average is about 9-13%

These are loose guidelines of course, different factors can come in to play.












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