boble
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Post by boble on Mar 14, 2016 17:35:27 GMT
I have sold a number of part loans today, which have been held for between two weeks and several months. I noticed part way through this process that the figures in the Interest Earned and Interest columns of the investments in which I had sold parts, were reducing. Is this simply because the figures refer only to the balance(s) remaining in the loan?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 14, 2016 17:44:33 GMT
I have sold a number of part loans today, which have been held for between two weeks and several months. I noticed part way through this process that the figures in the Interest Earned and Interest columns of the investments in which I had sold parts, were reducing. Is this simply because the figures refer only to the balance(s) remaining in the loan? You seem to have answered your own question  You're quite right; In your list of loan parts, it shows you the total interest that you have earned on the loan parts you currently hold. It does not include the sold parts interest. To see the interest that you have earned on the loan parts that you have sold, simply go to the "SOLD LOANPARTS" tab 
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boble
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Post by boble on Mar 14, 2016 18:30:24 GMT
Thank you for clarifying. Very much appreciated!
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sl75
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Post by sl75 on Mar 15, 2016 8:19:43 GMT
In effect, at the moment you put only a portion of a loan part up for sale, the system splits your existing loan part into two.
The original loan part is treated as though it had always been for the reduced amount, and the brand new loan part is treated as though it had been created on the original date.
It strikes me as a neat way to keep the database fairly tidy, but there could be rounding anomalies meaning you potentially gain or lose a penny from the split, depending on how they handle fractional accrued pennies.
[However, having seen the mess AC ended up in from trying to account for fractional pennies, I'd rather treat any lost fraction as part of the "fee for using the marketplace", than having some over-complicated system for tracking femtopence of interest in the name of "fairness"]
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mikes1531
Member of DD Central
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Post by mikes1531 on Mar 15, 2016 13:37:27 GMT
It strikes me as a neat way to keep the database fairly tidy, but there could be rounding anomalies meaning you potentially gain or lose a penny from the split, depending on how they handle fractional accrued pennies. [However, having seen the mess AC ended up in from trying to account for fractional pennies, I'd rather treat any lost fraction as part of the "fee for using the marketplace", than having some over-complicated system for tracking femtopence of interest in the name of "fairness"] I think SS simply round their interest calculations to the nearest penny. AFAIK, anyone with nothing better to do than buy and sell hundreds of loan parts all day long could improve their return by taking advantage of that.
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Post by GSV3MIaC on Mar 15, 2016 17:47:46 GMT
Good job bots are banished then, or I could foresee some really cunning strategic programming to buy/sell in exactly the right sized pieces on exactly the right day, to sneak an extra 0.5p each time. 8>.
(this of course assumes that buying and selling are even remotely possible, never mind buying and selling some chosen amount on some chosen day .. dream on!).
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