blender
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Post by blender on Feb 26, 2018 14:37:40 GMT
I have been selling chunks of two old portfolios, and have reached some conclusions about the selling algorithm, or the order in which loans are selected to match a sell request. The old portfolios are property, with large holdings of many parts. Each loan is around 10% interest, and is safe until the penultimate payment, one month to go, when 'two becomes one' to put it romantically. I seem to be able to sell the property loans I wish to sell, just before the penultimate repayment, which is rather nice (for me). The algorithm seems very simple. In order to match a request to sell a certain amount, the system seems to take, firstly, the next loan repayment date from today, and secondly, on a given repayment date, the loans in order of loan number. It will sell the whole of one loan before moving onto the next loan. This order is the normal order of loans displayed when you log in and look. On 28th I had two loans of many parts, one going from 3 to 2 and the other from 2 to 1 (the one I wished to sell). I waited for today's repayment, and these two were next. I put in the total amount of the one I wished to sell, but unfortunately it sold the other one first, being a lower loan number. So I had to sell again to lose the loan I wished to sell, and again to catch another 2 to 1 loan on 1st March. It seems to work well, and so I have restarted lending, confident in being able to dispose of the property loans, in large chunks, before their due dates. with just a little collateral damage. This process will be more complex if the system tries to match your request with the size of particular loan parts, but I think if you wish to sell a loan from a large portfolio, then just wait until the day before its next repayment, and count up the amount to be sold in live loans to get to it, on the list in my loan parts. Any other experience?
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jayjay
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Post by jayjay on Feb 26, 2018 15:38:36 GMT
I have been selling chunks of two old portfolios, and have reached some conclusions about the selling algorithm, or the order in which loans are selected to match a sell request. The old portfolios are property, with large holdings of many parts. Each loan is around 10% interest, and is safe until the penultimate payment, one month to go, when 'two becomes one' to put it romantically. I seem to be able to sell the property loans I wish to sell, just before the penultimate repayment, which is rather nice (for me). The algorithm seems very simple. In order to match a request to sell a certain amount, the system seems to take, firstly, the next loan repayment date from today, and secondly, on a given repayment date, the loans in order of loan number. It will sell the whole of one loan before moving onto the next loan. This order is the normal order of loans displayed when you log in and look. On 28th I had two loans of many parts, one going from 3 to 2 and the other from 2 to 1 (the one I wished to sell). I waited for today's repayment, and these two were next. I put in the total amount of the one I wished to sell, but unfortunately it sold the other one first, being a lower loan number. So I had to sell again to lose the loan I wished to sell, and again to catch another 2 to 1 loan on 1st March. It seems to work well, and so I have restarted lending, confident in being able to dispose of the property loans, in large chunks, before their due dates. with just a little collateral damage. This process will be more complex if the system tries to match your request with the size of particular loan parts, but I think if you wish to sell a loan from a large portfolio, then just wait until the day before its next repayment, and count up the amount to be sold in live loans to get to it, on the list in my loan parts. Any other experience? Yes I have found I now have very good control in selling down my portfolio. My property only portfolio has reverted to a load of 8% only loans as autosell initially chose to preferentially sell off all the 9% and 10% loans first. Using multiples of £20.13, I can now pick off those remaining with two months and a day to go at will and hence conserve for a lot longer a 7% yielding portfolio with relatively little risk.
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r00lish67
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Post by r00lish67 on Feb 26, 2018 15:56:16 GMT
Thanks for this guys. Interesting. Having done similar and built a hoard of old prop dev loans, I had anticipated needing to work on my understanding of the selling algorithm - however, in my case, a tad ironically they seem to be all repaying early. I won't have anything left by the time my first one reaches 2 months remaining I think. Blast you FC and your too-promptly-repaying property loans!  |
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wysiati
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Post by wysiati on Feb 27, 2018 11:44:08 GMT
I have been selling chunks of two old portfolios, and have reached some conclusions about the selling algorithm, or the order in which loans are selected to match a sell request. The old portfolios are property, with large holdings of many parts. Each loan is around 10% interest, and is safe until the penultimate payment, one month to go, when 'two becomes one' to put it romantically. I seem to be able to sell the property loans I wish to sell, just before the penultimate repayment, which is rather nice (for me). The algorithm seems very simple. In order to match a request to sell a certain amount, the system seems to take, firstly, the next loan repayment date from today, and secondly, on a given repayment date, the loans in order of loan number. It will sell the whole of one loan before moving onto the next loan. This order is the normal order of loans displayed when you log in and look. On 28th I had two loans of many parts, one going from 3 to 2 and the other from 2 to 1 (the one I wished to sell). I waited for today's repayment, and these two were next. I put in the total amount of the one I wished to sell, but unfortunately it sold the other one first, being a lower loan number. So I had to sell again to lose the loan I wished to sell, and again to catch another 2 to 1 loan on 1st March. It seems to work well, and so I have restarted lending, confident in being able to dispose of the property loans, in large chunks, before their due dates. with just a little collateral damage. This process will be more complex if the system tries to match your request with the size of particular loan parts, but I think if you wish to sell a loan from a large portfolio, then just wait until the day before its next repayment, and count up the amount to be sold in live loans to get to it, on the list in my loan parts. Any other experience? If my experience is representative you will struggle to make targeted disposals once/if you have rotated from property loans to repayment loans, unless you are selling prior to the first repayment date (i.e. works on new loan allocations not secondary market purchases/seasoned holdings).
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blender
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Post by blender on Feb 27, 2018 13:40:29 GMT
If my experience is representative you will struggle to make targeted disposals once/if you have rotated from property loans to repayment loans, unless you are selling prior to the first repayment date (i.e. works on new loan allocations not secondary market purchases/seasoned holdings). Thanks for your advice, wysiati. I have no wish to selectively dispose of the new SME loans, and will just let the machine produce what it will. Looking at the individual loan details only upsets me. I believe that I can dispose of my large property holdings from within a mixed portfolio, or well enough. Even if it does not work, I am now into the position where the property loans will last longer (tradable) than the end of this FY, after which a chunk will be sold into an IFISA. You seem to be suggesting that the fact of some capital repayment is significant to the algorithm, though that will not trouble me.
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Post by flx123 on Mar 5, 2018 9:59:39 GMT
The selling algorithm is certainly not helping to diversify. When I sold all my loans (in steps) a few months ago, the algorithm always listed all parts of one loan before moving to the next.
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markr
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Post by markr on Mar 5, 2018 11:08:26 GMT
I have a property loan due to make a payment tomorrow, so out of interest I tested Blender's method. It doesn't work for me. If I ask to sell £100.00 or more, it chooses a set of small loans to make a value of £109.95 (until I request £109.96, then it chooses loans that add up to £119.75, and so on). If I ask for £99.99 or less, it always tries to sell a £100 part in a D loan that is due it's first repayment on the 15th (until I get gown to about £88, when it goes back to smaller parts).
There does seem to be something payment related in the choice, because today it will choose that D loan every time, but tomorrow it will choose something else, but I'm yet to see a pattern a clear as Blender's in my account.
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