Yield to maturity (YTM)
The YTM represents the implied rate of return on a particular loan at a particular point in time. It is useful for buying loans on the secondary market and understanding what the actual rate of return is, bearing in mind that loans can be sold below par, at par and above par, and may have already paid monthly interest. The YTM is determined at the time I go to buy the loan on the secondary market and is valid if and only if I hold the loan until its maturity. The purpose of this tutorial will noFew readersSecondary market
If the platform you use has the secondary market, please read this article to understand how does this toll work. Secondary Market The user has the possibility to sell a loan he had previously contracted in order to obtain immediate liquidity on the platform's balance. On the opposite side, the buyer can decide to buy a loan that he did not have in his portfolio for various reasons (e.g. to increase diversification). At the moment there are only bullet loans on the secondary market, in theFew readers