Payment and LTV percentages
I’ve heard investors say you should stay away from low payment notes. I’m wondering the rationale. As long as the yield is acceptable, I’m thinking what does it matter? I guess it could limiting because of you want to accelerate your notes, could you do a partial?
A related question is is there a risk for buying a performing note with very low LTV? It would seem a borrow would likely not want to walk away with that equity.
It seems suspicious to me if there are still a lot of years left though.