Squirrel secondary market approved
Squirrel Money has had its secondary market approved by the Financial Markets Authority.
Friday, March 11th 2016, 5:49PM
by Susan Edmunds
Founder John Bolton said formal approval was expected late this week.
"It's going to be the first secondary market approved by the FMA. Essentially, investors who are investing in loans through the platform will now be able to sell those loans back through the platform if they want to sell up. It relies on us finding another investor who is happy with the remaining term and interest rates. But we are currently paying investors 9% so at a 9% return it's not difficult to find investors who would take up those loans."
He said the market would offer liquidity to the peer-to-peer platform. Some investors had been reluctant to lock up their money for five-year terms, he said.
"Having the ability to sell back to the platform is really going to help them in terms of investing out to five years."
| « Harmoney arrears increase | Harmoney puts brakes on secondary market » |
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