|
Post by westonkevRS on Jan 2, 2016 19:28:02 GMT
Thanks for that Kevin. I wonder if you're able to answer my query in my post entitled 'Interesting experiment........' which I made last week. Basically I'd like to know how reinvestments are applied automatically as I've never done that. Example: I get 5 payments of £15, £20, £25, £30 and £35 over a period of 10 days. If I set my reinvestments to the 5yr market, will those amounts be applied in 5 chunks so that I get 5 new mini contracts or one contract of £125 or two of £60 and £65 or etc.....? In other words, is there a set protocol?
If the repayments come over different days, they would almost certainly be in five different new contracts attached to different new loans. Although it is possibly one could be split into two (if part of the repayment makes the final £x of loan a, and the start £y of loan b). Reinvestment at Market Rate is nearly always lent same day, so if your five repayments came different days almost certainly they form into different contracts. As a result any initial large chunk of lending into 1 or 2 loans eventually gets split into 1,000s as monthly payments reinvested are then repaid back into smaller reinvestments and so forth. EDIT CORRECTION: Things get complicated when you start to have different repayments from different loans made on the same day. MULTIPLE SAME DAY REPAYMENTS ARE LUMPED INTO A SINGLE AMOUNT. However their place in the queue is determined by oldest contract date, therefore longer standing lenders with older loans will benefit from being nearer the front (it had to be coded some way, and this seemed the fairest). If the payments had been kept separate, this would have led to ever diminishing tiny contracts. Multiple new contracts from repayments on different days can be avoided by having repayments paid into your holding queue. Then you can save up your repayments and invest into a single loan. Kevin.
|
|
spiral
Member of DD Central
Posts: 910
Likes: 456
|
Post by spiral on Jan 3, 2016 8:39:57 GMT
Things get complicated when you start to have different repayments from different loans made on the same day. Technically they remain separate, but because their orders in the queue is determine by the previous oldest contract date (I think.... at the lender level), there is a chance that they line up together for lumped lending. Rather than ever diminishimg tiny contracts. Kev, unless I'm misreading this, this isn't what happens. If I have 10 repayments come in on a given day, they go on market as 1 order. I think you are implying they go out as 10 orders but as they are so close together, they're likely to go out to one borrower. Multiple orders do sometimes go out to one borrower and I get several of these because I consistently have repayments go on market much higher than MR, but these are from distinctly seperate repayments. I personally would like to see these packaged together as one contract but suspect that this probably creates additional audit trails.
|
|
|
Post by newlender on Jan 3, 2016 15:35:35 GMT
Thanks, Kev, that's what I imagined would happen. I'll put everything into my Holding Account until it's reached a reasonable amount and then buy a contract. I've looked at the excellent breakdown that you do on the website detailing the repayments that are due on specific days and I have identified dates for each month in 2016 when I will be able to do that. It's not that hard to automate this actually, as Excel can be used. I've downloaded the 12 spreadsheets from 'my portfolio', converted them to full Excel format and then used this to identify the correct dates. I had to merge the 12 spreadsheets into one big one in order to do this but it gave me the days in 2016 when my holding account would reach the figure I wanted. Only early repayments can now foil my plan and mess up my spreadsheet, so here's hoping! (I realise that I'll have repayments from the new contracts too after a while, but the principle is that the date I've identified will always be one when I have enough to reinvest into a largish contract, as I don't intend to make any withdrawals). I'm off out now to walk the dog and get a life!
|
|
|
Post by newlender on Jan 3, 2016 17:11:38 GMT
Drat! I forgot to put my balance in the Holding Account at 31/12/15 into the sheet. Have now added that to my first repayment of the year (expected tomorrow) and the sheet has re-calculated.
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Jan 4, 2016 9:38:21 GMT
oops...wrong thread
|
|
|
Post by westonkevRS on Jan 5, 2016 15:14:04 GMT
Kev, unless I'm misreading this, this isn't what happens. If I have 10 repayments come in on a given day, they go on market as 1 order. spiralApologies, I just checked with IT and you are correct. Multiple same-day repayments are lumped together and potentially lent into a single new contract. However their place in the queue is determined by oldest contract date, therefore longer standing lenders with older loans will benefit from being nearer the front (it had to be coded some way, and this seemed the fairest). If the payments had been kept separate, this would have led to ever diminishing tiny contracts.
|
|