Chesswood Credit FacilityIt seems like the Pawnee Portfolio Fund will no longer be used (paid down) so I think CHW will primarily warehouse new receivables in the Chesswood Credit Facilitiy before they have enough to securitize. The effective interest rate that they reported on the Facility varied considerably last year. I think it was 4.66% in Q1, 5.36% in Q2, 3.85% in Q3, and 5.42% in Q4 and in the notes these effective rates are on a 3-month, 6-month, 9-month, and then all-year basis so the variability really does not make any sense.
Has anyone have an idea on the rate they are paying on it. Seems hard to imagine that this facility costs 5.XX%, while they can securitize in the 2.XX%. Whatever the rate on the Chesswood Credit Facilitiy, the securitization market offers a nice reduction in cost of funds. Hopefully they can do another securitization before year end!