tomtom
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Post by tomtom on Feb 22, 2016 7:31:37 GMT
I have been checking the dash board over the past few days and notice that while my loans invested has increased by over £500 by transferes from the QAA to the GBBA the average intested has reduced from 7.58 down to 7.53 why is this?
I would have thought that since money had been trasnferred from a lower intested rate 3.75% in QAA to a higher rate in GBBA 7% the overall interest rate would have increased not decreased.
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registerme
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Post by registerme on Feb 22, 2016 7:40:13 GMT
The average interest figure ignores QAA funds.
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SteveT
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Post by SteveT on Feb 22, 2016 7:58:13 GMT
It confused me too for a while. I think the logic must be that the Average Interest figure is only calculated on the loan parts you hold (so free cash in your MLIA or GBBA doesn't affect the figure either). Loans held by the QAA presumably aren't allocated to specific QAA investors, they're just held by the "account" in aggregate.
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Post by chris on Feb 22, 2016 7:58:36 GMT
The average interest figure ignores QAA funds. On my to do list.
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Post by chris on Feb 22, 2016 8:00:39 GMT
It confused me too for a while. I think the logic must be that the Average Interest figure is only calculated on the loan parts you hold (so free cash in your MLIA or GBBA doesn't affect the figure either). Loans held by the QAA presumably aren't allocated to specific QAA investors, they're just held by the "account" in aggregate. QAA does hold the loan units per lender but the investment mechanism uses a different route (pooled block purchase and then allocated to individual accounts) so isn't being correctly counted on the dashboard interest calculation. Needs a new little bit of logic to include the figures.
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tomtom
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Post by tomtom on Feb 22, 2016 10:22:45 GMT
Thanks on the dashboard there is a figure of £25.94 beside Current Accrued Interest what does this cover and what happens to this money?
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registerme
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Post by registerme on Feb 22, 2016 12:20:16 GMT
It's interest that has accrued (ie is owed) but not yet repaid because the loans in question haven't reached their repayment date. As to what happens with it, it depends on how you've set your account up. I think the default is that it will go back to your cash account. I have mine set up to sweep repayments into the QAA account, and have that set up to then invest in my MLIA target loans.
Again, I suspect accrued interest figures do not account for QAA funds earning 3.75%.
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tomtom
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Post by tomtom on Feb 22, 2016 13:12:36 GMT
It's interest that has accrued (ie is owed) but not yet repaid because the loans in question haven't reached their repayment date. As to what happens with it, it depends on how you've set your account up. I think the default is that it will go back to your cash account. I have mine set up to sweep repayments into the QAA account, and have that set up to then invest in my MLIA target loans. Again, I suspect accrued interest figures do not account for QAA funds earning 3.75%. I assume that this interested acctued is only from my MLIA loans as interest from loans in the two managed system will be entered direct into QAA and I will not see them?
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registerme
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Post by registerme on Feb 22, 2016 13:18:44 GMT
I suspect so, yes. But I only use the MLIA so can't answer for certain.
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investibod
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Post by investibod on Feb 22, 2016 13:28:18 GMT
I assume that this interested acctued is only from my MLIA loans as interest from loans in the two managed system will be entered direct into QAA and I will not see them? Depends on your reinvestment option chosen. Mine gets reinvested back into the same managed fund automatically.
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
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Post by skippyonspeed on Feb 22, 2016 16:53:19 GMT
According to my calcs, it is the only figure on this site that is rounded up  |
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duck
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Post by duck on Feb 23, 2016 5:56:43 GMT
Beware the Ides of March effects of default interest rates, these I believe skew the headline figure. One of my loans currently shows 68% (!) I take a realistic view on recovery and take such loans out of my spreadsheet calculation in order to calculate my own figure.
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mikeb
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Post by mikeb on Feb 25, 2016 18:52:50 GMT
Beware the Ides of March effects of default interest rates, these I believe skew the headline figure. One of my loans currently shows 68% (!) I take a realistic view on recovery and take such loans out of my spreadsheet calculation in order to calculate my own figure. On my spreadsheet, It won't be long before the accrued interest is as much as the original loaned capital.
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tomtom
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Post by tomtom on Feb 27, 2016 8:15:41 GMT
Beware the Ides of March effects of default interest rates, these I believe skew the headline figure. One of my loans currently shows 68% (!) I take a realistic view on recovery and take such loans out of my spreadsheet calculation in order to calculate my own figure. On my spreadsheet, It won't be long before the accrued interest is as much as the original loaned capital. Why is this as i would have expected that this figure ( accrued interested) would go up and down depending on date when the accrued interest for each loan is trandferred from this account to the loan account?
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SteveT
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Post by SteveT on Feb 27, 2016 9:58:49 GMT
On my spreadsheet, It won't be long before the accrued interest is as much as the original loaned capital. Why is this as i would have expected that this figure ( accrued interested) would go up and down depending on date when the accrued interest for each loan is trandferred from this account to the loan account? Because that loan isn't actually making any payments!
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