Ablrate, the peer-to-peer lending platform that offers investors access to asset backed loans against aircraft transactions, has launched a new platform with a secondary market.
Commenting on the new platform, CEO Ablrate David Bradley-Ward said, “The new Secondary Market is a culmination of feedback from investors and our experience trading in other markets, such as commodities and bonds, where a two-way market is essential. Any market can only be successful if there is liquidity, and that is never guaranteed, but we feel that the way we have structured the secondary market and the accuracy of the calculations, will make it an attractive addition to the Ablrate platform. In the short time the system has been live we have seen over 500 trades.”
According to research firm Liberum, the global online lending industry has surpassed $8 billion in 2013, and is on its way to become a $40 billion industry in the U.S and UK alone by 2016. Ablrate is on track to tap into this growing industry with its new investment platform and revolutionary secondary market.
“What attracted us to Ablrate was the innovative approach they have to the sector and the new Secondary Market is a product of that innovation,” shared Spyros Papadopoulos, CEO of Synthesis, an institutional investor on Ablrate. “For professional investors, and retail investors alike, being able to trade on accurate yield figures is important and being able to do so in a true two-way market with bids and offers is a logical move forward for the sector.”
In line with other platforms, Ablrate allows investors to list their loans on a secondary market for onward sale to other investors. With the secondary market on the new platform, investors can list the price they are willing to pay for a loan (a ‘Bid’) or list their loans for a price they are willing to sell (an ‘Offer’).
This Bid and Offer system allows more flexibility for buyers and sellers to come together. During the research for creating the new secondary market, Ablrate found that a number of platforms suspend interest for investors once they list their loans on the secondary market, effectively meaning that investors buy loans with more interest attached to them and outgoing sellers lose out on some of their earnings.
Ablrate’s new system utilizes technology to address this issue and add value to investors registered on Ablrate’s platform. The system calculates interest due to sellers and credits their accounts appropriately when the sale is made; investors could list all their loans on the market and never lose any interest, whether their loans were purchased or not.
Ablrate will also be adding a sophisticated ‘Auto Invest’ feature, which interacts with other elements of the platform from primary market (new loans) to the secondary market allowing investors to tailor their investment requirements and letting the system trade for them automatically.
With this new launch, Ablrate aims to continue to provide its users with investment opportunities that range from the highly regulated aircraft leasing space to capital equipment transactions, while offering a secure investment proposition and higher returns. To date, the new platform has traded over £2 million, with another £2 million due to be closed shortly. In the pipeline, the company also has £50-£100 million forward-looking trades that puts it in a strong position for the coming year.
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