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Post by reeknralf on Sept 29, 2015 8:14:38 GMT
There are 65 loan candies to be distributed among 1000 investors, what do you do?
The worst solution: Get the investors to deposit 1M, initiate a scrum. The platform's bank gets fees for 935k being deposited, then withdrawn. 95% of investors have their time needlessly wasted, and are pissed off.
The next worst solution: Bid limits. The auction lasts 9s rather than 3s. Fees for the bank as above. Only 85% of investors are pissed off.
A less bad solution: Loan candies are shared. Either in proportion to pre-bids (style SS), or they are allocated to new, old, big, small, random investors, whatever ABLrate judges best for the platform. Successful bidders then fund their allocation. Given funds can be deposited very quickly, if necessary a very short-window can be imposed for allocations to be funded. Unfunded allocations are put on the SM.
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indy
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Post by indy on Sept 29, 2015 10:05:03 GMT
Just put a 1k limit for 24hrs - simple!, no need for discussion (or moaning..) This must be the easiest solution. I am glad I did not bother to try and bid on this one.
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SteveT
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Post by SteveT on Sept 29, 2015 10:47:00 GMT
What is disappointing for me is that about 5% of the loan is currently being offered on the secondary market - perhaps implementing a rule that new holders can't sell on the market (or at a premium) for a set amount of time would prevent some from over bidding, allowing more for others. Last night's loan hasn't completed yet so there's nothing on the SM at the moment. I presume you were looking at the previous container loan ("September 2015" as opposed to "September 2015 (2)")
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unmadem
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Post by unmadem on Sept 29, 2015 12:10:57 GMT
By my reckoning, £1000 in the 14% container loan earns £70 in 6 months whilst £1000 in the 11% Waste-to-energy loan (with 1%CB) earns £65 over 6 months, only £5 less. So it's interesting why one fills in 5 seconds and the other still has £150k to go after 20 days. and very little of the spare money un-invested last night seems to have made its way to the waste to energy one. Though it has helped, £100k to go now.
I wonder if it might have been more effective marketing to offer a higher headline rate than separating out part of the overall return as cashback ? Headline of 11% doesn't look good compared with 12% on SS. Also cashback not terrible handy on a site where loan flow is poor and it just sits around for ages not earning anything.
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Post by ablrateandy on Sept 29, 2015 13:25:30 GMT
Thanks for the constructive feedback. There will be a minor "upsize" to just over 85k (65 containers, same LTV). The borrower is a pragmatist - we want to get deal flow for him increased steadily. If he brings in 100 containers that is a LOT to sell and increases the risk on the transaction. That isn't something that is good for him, me (personally), Ablrate (as a platform) or lenders.
Anyway, we are just deciding the fairest way to allocate the balance of 20k and will email lenders about this later today/this evening/whenever my baby stops screaming in my ear!
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Post by ablrateandy on Sept 29, 2015 13:26:04 GMT
Of course anyone not happy with the upsize can mail me and I will buy you out of your investment at 100.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Sept 29, 2015 16:15:40 GMT
Thanks for the constructive feedback. There will be a minor "upsize" to just over 85k (65 containers, same LTV). The borrower is a pragmatist - we want to get deal flow for him increased steadily. If he brings in 100 containers that is a LOT to sell and increases the risk on the transaction. That isn't something that is good for him, me (personally), Ablrate (as a platform) or lenders. Anyway, we are just deciding the fairest way to allocate the balance of 20k and will email lenders about this later today/this evening/whenever my baby stops screaming in my ear! Preferably nothing that involves response/action tonight as I will watching Roj tear down the Wall in a cinema. (Wonder if hes considered supersizing it with shipping containers, know someone who can lay their hands on some ) Have you considered allocating the uplift to any loyal lenders who missed out but chipped in for the failed plane loan? Just a suggestion.
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stevio
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Post by stevio on Sept 29, 2015 16:18:37 GMT
Of course anyone not happy with the upsize can mail me and I will buy you out of your investment at 100. Why do you get all the nice stuff? Why can't you cancel anyone's investment who is not happy with the upsize and requests it and then offer this up to those that missed out? You could offer it as a new tranche and making the people who are not happy with the upsize, happy, as well those that missed out EDIT: crossed with ilmoro
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Post by ablrateandy on Sept 29, 2015 16:24:17 GMT
ilmoro I saw him in concert last year! Any decision will give people 72 hours notice. stevio This isn't for my own benefit! I will buy people out at 100.00 and put them in the pot with the extra amount to be offered out. No point creating a second, separate tranche on it as it just makes things confusing. If it was for my benefit, there would have been no bunfight yesterday and a large amount on the secondary market at 102 tomorrow morning!
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blender
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Post by blender on Sept 29, 2015 16:32:02 GMT
Thanks for the constructive feedback. There will be a minor "upsize" to just over 85k (65 containers, same LTV). The borrower is a pragmatist - we want to get deal flow for him increased steadily. If he brings in 100 containers that is a LOT to sell and increases the risk on the transaction. That isn't something that is good for him, me (personally), Ablrate (as a platform) or lenders. Anyway, we are just deciding the fairest way to allocate the balance of 20k and will email lenders about this later today/this evening/whenever my baby stops screaming in my ear! Preferably nothing that involves response/action tonight as I will watching Roj tear down the Wall in a cinema. (Wonder if hes considered supersizing it with shipping containers, know someone who can lay their hands on some ) Have you considered allocating the uplift to any loyal lenders who missed out but chipped in for the failed plane loan? Just a suggestion. This is getting very silly. Perhaps each applicant lender could submit a 500 word application explaining why he/she deserves to be allocated part of the uplift and Ablrate can refer all to a panel of independent judges who will take particular account of the applicants' back stories? You missed it. Tough. Better luck next time. (As a bidder on the stalled plane loan I am more than happy with the index-linked pension which Ablrate have offered me in compensation.)
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Post by reeknralf on Sept 29, 2015 17:05:09 GMT
Thanks for the constructive feedback...... Anyway, we are just deciding the fairest way to allocate the balance of 20k.. I can think of an appropriate way to thank people for constructive feedback and allocate the 20k. I haven't yet withdrawn my unused funds from last night....
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Sept 29, 2015 17:46:36 GMT
Preferably nothing that involves response/action tonight as I will watching Roj tear down the Wall in a cinema. (Wonder if hes considered supersizing it with shipping containers, know someone who can lay their hands on some ) Have you considered allocating the uplift to any loyal lenders who missed out but chipped in for the failed plane loan? Just a suggestion. This is getting very silly. Perhaps each applicant lender could submit a 500 word application explaining why he/she deserves to be allocated part of the uplift and Ablrate can refer all to a panel of independent judges who will take particular account of the applicants' back stories? You missed it. Tough. Better luck next time. (As a bidder on the stalled plane loan I am more than happy with the index-linked pension which Ablrate have offered me in compensation.) Firmly tongue in cheek that suggestion.
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paulgul
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Post by paulgul on Sept 30, 2015 14:06:44 GMT
Anyway, we are just deciding the fairest way to allocate the balance of 20k and will email lenders about this later today/this evening/whenever my baby stops screaming in my ear! Did anyone get this email or is the baby still screaming
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Post by ablrateandy on Sept 30, 2015 14:10:13 GMT
Baby always screams . Mail going out in the next hour!
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Post by ablrateandy on Sept 30, 2015 14:59:55 GMT
Another 30 mins. Computer died
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