Months left on performing notes

[Gil Ganz]

Hey
When buying performing notes do you tend to prefer ones that have a longer period left or a short one? There are advantages to both sides, would like to hear your thoughts on the matter.  For sake of discussion, I would say a short term is 5-6 years and under.

[Chris Seveney]

@Gil Ganz

I prefer to buy with longer term but for different reason. If I am buying a note that I want a 20% yield whether it has 4 or 24 years left the percent of principal vs interest does not matter. My yield is my yield and its discounted based on that. The reason I like long term more is better chance borrower will refinance and then you get that bonus.