daveb4
Member of DD Central
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Post by daveb4 on Dec 20, 2017 8:43:41 GMT
GBBA1 is going to slowly reduce over next few years so just trying to get my head around this.
I understand that the DPF does not guarantee to pay out for defaults and i think your portfolio should not have 1 individual business being more than 20% of your portfolio (not sure if this is correct?)
Questions therefore moving forward
- Will the provisional fund keep going and keep increasing?
- What are the intentions of Assetz with the cash near the end, pay off all defaults put cash elsewhere etc?
- More specifically will we just end up with a pot of defaulted loans?
- I presume GBBA1 cant swap/buy in new/exisiting loans? - more specifically swapping dodgy ones in between all our GBBA1 portfolios to maximise/minimise the percentage of funds held in individual loans?
I do not want to see the amounts in my default loans increasing!
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Post by stuartassetzcapital on Dec 20, 2017 9:05:20 GMT
Hi
Answers below :
Will the provisional fund keep going and keep increasing?
- yes this is correct
What are the intentions of Assetz with the cash near the end, pay off all defaults put cash elsewhere etc?
- any Provision Fund cash remaining after any discretionary payments for late interest and losses will revert to Assetz Capital
More specifically will we just end up with a pot of defaulted loans?
- only if losses exceed the PF following all discretionary payouts. Otherwise you would have been paid back in full with interest. Coverage ratios are on the defaults and losses webpage on the website.
I presume GBBA1 cant swap/buy in new/exisiting loans? - more specifically swapping dodgy ones in between all our GBBA1 portfolios to maximise/minimise the percentage of funds held in individual loans?
- there is no trading relationship between any automated account, they act independently according to their mandates. GBBA1 will no invest in any new loans and any redemptions and interest will revert to your cash account and not be reinvested.
I hope this helps.
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dermot
Member of DD Central
Posts: 862
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Post by dermot on Dec 20, 2017 18:29:07 GMT
Hi Answers below : Will the provisional fund keep going and keep increasing? - yes this is correct What are the intentions of Assetz with the cash near the end, pay off all defaults put cash elsewhere etc? - any Provision Fund cash remaining after any discretionary payments for late interest and losses will revert to Assetz Capital More specifically will we just end up with a pot of defaulted loans? - only if losses exceed the PF following all discretionary payouts. Otherwise you would have been paid back in full with interest. Coverage ratios are on the defaults and losses webpage on the website. I presume GBBA1 cant swap/buy in new/exisiting loans? - more specifically swapping dodgy ones in between all our GBBA1 portfolios to maximise/minimise the percentage of funds held in individual loans? - there is no trading relationship between any automated account, they act independently according to their mandates. GBBA1 will no invest in any new loans and any redemptions and interest will revert to your cash account and not be reinvested. I hope this helps. Although I set my GBBA1 to push any returned funds to my cash account on Sunday, I'm still seeing returned funds sitting in GBBA1 to be reinvested - and successfully so. As late as 16:47 today GBBA1 has reinvested returned funds in loans #151, 8, 390, 243 and several more. While I'm happy to be getting 7% rather than something less on these funds, this doesn't seem to agree with your statement, any thoughts?
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amphoria
Member of DD Central
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Post by amphoria on Dec 20, 2017 19:50:26 GMT
GBBA1 is still making purchases using money from loan sales. It is interest and capital repayments that are going to the cash account.
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Post by stuartassetzcapital on Dec 20, 2017 22:37:26 GMT
If anyone has chosen to leave cash in the GBBA1 queue then it will be invested. We left a couple of days for people to remove it if they wished and then released a final batch of loans that the GBBA1 will probably buy into. After that there is no way to get new cash into the account and so purchases will stop.
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