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Trail book buyers push prices up

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Australian Broker | 28 Jan 2011, 04:45 AM Agree 0
An influx of opportunistic trail book buyers is pushing prices up, as less sellers materialise than expected in the first month of the new year
  • countrybroker | 28 Jan 2011, 01:49 PM Agree 0
    This makes sense, why would a well established broker with a good book want to sell a cash flow that will help through the tough times and create really good profits in the good time sell?
    I suspect brokers who have say a small direct books who have elected to become credit representatives may want to sell as it will be far too hard to manage the direct book , PLAN have pushed the credit representative model and have done the correct thing in helping brokers sell. It will remain to be seen if there is a high volume of sales in the next 90 days I suspect not. As a broker with a full licence I see no sense in selling off a good cash flow at all.
  • john_tindall | 10 Feb 2011, 02:18 PM Agree 0
    Sellers may have a preference for a lump sum based on today's account balances rather than a drip feed off a constantly shrinking asset (as people pay off their loans). And if they're not credit reps, then as soon as clients' credit needs can't be met, they'll go elsewhere, further reducing the asset base. Like an ice block in the sun, plus regular chipping away.
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