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02-06-2015, 10:09 AM #1
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OnDeck vs CAN
What are the major differences between the top 2 players in the market now?
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02-06-2015, 10:19 AM #2
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- Feb 2014
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one is public the other is not
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02-06-2015, 10:54 AM #3
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- Jan 2015
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One actually approves deals and is very easy to deal with....the other declines almost everything and then shops your deals to one of their outside sales companies which ultimately funds the deal themselves and you get cut out.
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02-06-2015, 01:58 PM #4
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02-06-2015, 05:20 PM #5
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02-06-2015, 10:57 AM #6
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- Jun 2014
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- 195
One uses common sense underwriting and funds solid deals and one funds using their "revolutionary algorithm" and defaults at a high 20's rate
Anyone want to guess which one is which????
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02-06-2015, 11:07 AM #7
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02-06-2015, 02:53 PM #8
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- Sep 2014
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I see you trotting this line out again and again, and in light of the CAN IPO thread yesterday I reread ODC's securitization prospectus. Of note, from that prospectus:
"Any Trigger Event shall occur as of any Monthly Reporting Date;
c. The three month average Delinquency Ratio was greater than 16.00%"
If you were correct, which you are not, then ODC would have **** the bed when it comes to the securitization facility. But, just to drive the point home further, it should also be noted that later in that same document they provide default rates by vintage, which can be seen below. The entire time they've been in business they have been using what you call a "revolutionary algorithm", and as you can see the principal loss rate for the most recent fully seasoned vintage in 2011 is 6.32%.
ilMilVS.png
Later in the prospectus, in the Cash Flow Analysis section, the following statement is made:
"DBRS assumed a range of 6.38% to 7.50% as its base case loss figure."
That is after a very thorough review of ODC's books, process, defaults, modeling, "revolutionary algorithm", etc. DBRS arrived at the conclusion that even on the high side, ODC's loss rate on a % of principal basis in 7.5%. Using the "weighted average remaining term of approximately 8.4 months" from the Rating Rationale section, that still only puts the annualized loss rate at 10.71%, which is far below your constant citation of a "high 20s default rate".
The DBRS prospectus is rather dated at this point though, so let's take a look at some of the disclosures from the S-1! Here's the charge off ratio (% of principal) chart showing 2012-2014 from the S-1 IPO filing. Note that the 2013 vintage is trending under the 2012 vintage curve.
ADwmp5r.png
For further clarification, take a look at this chart showing net charge off ratios (% of principal). You will note that 2012 is 6.9% and after 10 months of seasoning the 2013 vintage is at 6.2%, which indicates improving loss rates given the average loan duration is 8.4 months.
LE30Dc6.png
Now, perhaps you are privy you some insider knowledge about ODC that wasn't made available when they were audited by DBRS for the securitization pool or when they were audited by Goldman and Deutsche Bank leading up to the IPO, but I doubt that. I think you are just butt hurt that they canned you as a partner and take every opportunity to try to bad mouth them as some petty act of revenge.
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02-06-2015, 05:21 PM #9
Credit Guy...they didn't submit their full book for review, that's why.
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02-06-2015, 06:14 PM #10
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- Sep 2014
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Last edited by CreditGuy; 02-06-2015 at 06:19 PM.
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02-06-2015, 05:40 PM #11
edit
Last edited by ADiamond; 02-06-2015 at 06:00 PM.
Anthony Diamond
Underwriter
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02-09-2015, 11:08 AM #12
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- Aug 2014
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02-06-2015, 01:56 PM #13
One has an mca and loan product while the other only has a loan product
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02-06-2015, 06:24 PM #14
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- Sep 2014
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I'll also add that the S-1 data is representative of the entire portfolio's performance.
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02-09-2015, 09:12 AM #15
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- Jan 2013
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- Berlin, CT
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02-09-2015, 09:40 AM #16
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You realize the S-1 isn't a "package", right? It's the prospectus for the public offering and per SEC rules must disclose the performance of the company as a whole. You can't pick and choose parts of the portfolio to be included. That would be a massive SEC violation.
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02-09-2015, 09:53 AM #17
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- Jan 2013
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- Berlin, CT
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- 191
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02-09-2015, 09:58 AM #18
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- Aug 2014
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- 30
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02-07-2015, 07:28 PM #19
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- Oct 2014
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OnDeck vs CAN
BOI is better than both can and ondeck
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02-09-2015, 11:16 AM #20
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02-09-2015, 11:21 AM #21
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- May 2014
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- 317
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02-09-2015, 02:56 PM #22
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- Oct 2014
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02-09-2015, 02:59 PM #23
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02-09-2015, 10:31 AM #24
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- Sep 2014
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Reading comprehension is hard I suppose.
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02-09-2015, 03:02 PM #25
So what does BOI do then in the industry?
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