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Post by swfab on Aug 3, 2017 18:16:34 GMT
Would anyone know why, starting from 0 and investing say 10K in the QAA, that 10K is split between hundreds of loans (visible in 'Your loan holdings') many of which are in TRADING SUSPENDED status, like loans 457/437/435/407/330/240/230/86/...? Why would any new money be assigned to loans that are already in trouble???
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SteveT
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Post by SteveT on Aug 3, 2017 18:28:05 GMT
In the QAA, your "holdings" are just a share of whatever the QAA already holds. If you withdraw your funds, the cash element of the QAA buys them back from you. It's a clever construct to get around the rules preventing P2P companies paying interest on cash deposits.
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ilmoro
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'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 Aug 3, 2017 18:39:47 GMT
Would anyone know why, starting from 0 and investing say 10K in the QAA, that 10K is split between hundreds of loans (visible in 'Your loan holdings') many of which are in TRADING SUSPENDED status, like loans 457/437/435/407/330/240/230/86/...? Why would any new money be assigned to loans that are already in trouble??? Further to stevet answer some of the loans showing as suspended arent in trouble, they are suspended for tranche drawdowns on development loans or becuase a vote is taking place to authorise a change in the terms 435, 330, 240, 230 are in trouble, 86 is terminal.
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Post by swfab on Aug 3, 2017 18:43:45 GMT
In the QAA, your "holdings" are just a share of whatever the QAA already holds. If you withdraw your funds, the cash element of the QAA buys them back from you. It's a clever construct to get around the rules preventing P2P companies paying interest on cash deposits. Thank you SteveT . I however do not understand this. What is the 'cash element' of the QAA? Is this the provision fund? After noticing this, to me, investment oddity, I withdrew the entire amount in my QAA and reinvested the exact same amount minutes later (2 mins ago, after I read your reply).....the spread amount between loans could be slightly different but still, those same loans in trouble (trading suspended) were re-invested into. It does not make sense to me that, if a loan is in trouble, any new money is being pumped into (whether it is via QAA or 30-DayAA or any of the other non-provision-fund backed accounts).
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Post by swfab on Aug 3, 2017 18:47:18 GMT
Would anyone know why, starting from 0 and investing say 10K in the QAA, that 10K is split between hundreds of loans (visible in 'Your loan holdings') many of which are in TRADING SUSPENDED status, like loans 457/437/435/407/330/240/230/86/...? Why would any new money be assigned to loans that are already in trouble??? Further to stevet answer some of the loans showing as suspended arent in trouble, they are suspended for tranche drawdowns on development loans or becuase a vote is taking place to authorise a change in the terms 435, 330, 240, 230 are in trouble, 86 is terminal. Thanks ilmoro . Just answered SteveT as well. So here you go, some loans 'may not' be in trouble but many of the ones I listed are and why would any money be pumped into loan 86?
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trouble
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Post by trouble on Aug 3, 2017 18:48:40 GMT
Would anyone know why, starting from 0 and investing say 10K in the QAA, that 10K is split between hundreds of loans (visible in 'Your loan holdings') many of which are in TRADING SUSPENDED status, like loans 457/437/435/407/330/240/230/86/...? Why would any new money be assigned to loans that are already in trouble??? Have you e-mailed AC Towers to ask them how their QAA works?
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SteveT
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Post by SteveT on Aug 3, 2017 18:53:39 GMT
Something like 40% of total funds in the QAA are held as cash, providing the liquidity reserve that ensures you can withdraw instantly. The rest is invested in AC loans, some of which will have hit problems since the QAA acquired them (or been suspended for admin reasons as ilmoro points out). Just because you move a little money into or out of the QAA, it doesn't buy or sell additional loan holdings. Those investment decisions are made at an aggregate level by AC's behind-the-scenes QAA lever-pullers. The interesting question, of course, is what happens if everyone wants their QAA money back at once.... |
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agent69
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Post by agent69 on Aug 3, 2017 19:05:27 GMT
The interesting question, of course, is what happens if everyone wants their QAA money back at once.... I thought that the last person to push the button was left holding the baby?
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jonah
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Post by jonah on Aug 3, 2017 19:16:00 GMT
The interesting question, of course, is what happens if everyone wants their QAA money back at once.... I thought that the last person to push the button was left holding the baby? And is unhappy.
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Post by bikeman on Aug 3, 2017 19:18:59 GMT
Would anyone know why, starting from 0 and investing say 10K in the QAA, that 10K is split between hundreds of loans (visible in 'Your loan holdings') many of which are in TRADING SUSPENDED status, like loans 457/437/435/407/330/240/230/86/...? Why would any new money be assigned to loans that are already in trouble??? Hundreds of loans? I don't know if that is better or worse than the bulk of mine going into a single suspended loan? AC makes me nervous.
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Post by swfab on Aug 3, 2017 19:41:57 GMT
Would anyone know why, starting from 0 and investing say 10K in the QAA, that 10K is split between hundreds of loans (visible in 'Your loan holdings') many of which are in TRADING SUSPENDED status, like loans 457/437/435/407/330/240/230/86/...? Why would any new money be assigned to loans that are already in trouble??? Hundreds of loans? I don't know if that is better or worse than the bulk of mine going into a single suspended loan? AC makes me nervous. Yes, spread between about 270 loans ;-) . Just started on AC with QAA and 30-Day for now just to put what I took out of RS (which I am emptying) so that it earns something and will slowly start moving/investing into the MLIA.
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Post by swfab on Aug 3, 2017 19:42:58 GMT
Something like 40% of total funds in the QAA are held as cash, providing the liquidity reserve that ensures you can withdraw instantly. The rest is invested in AC loans, some of which will have hit problems since the QAA acquired them (or been suspended for admin reasons as ilmoro points out). Just because you move a little money into or out of the QAA, it doesn't buy or sell additional loan holdings. Those investment decisions are made at an aggregate level by AC's behind-the-scenes QAA lever-pullers. The interesting question, of course, is what happens if everyone wants their QAA money back at once.... Thanks SteveT. I understand now. I was not aware that around-40% of QAA funds was held in cash. I'm assuming then that the 30-Day AA would not have such big % cash liquidity, if any at all. Thanks again.
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ilmoro
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Post by ilmoro on Aug 3, 2017 19:46:31 GMT
Further to stevet answer some of the loans showing as suspended arent in trouble, they are suspended for tranche drawdowns on development loans or becuase a vote is taking place to authorise a change in the terms 435, 330, 240, 230 are in trouble, 86 is terminal. Thanks ilmoro . Just answered SteveT as well. So here you go, some loans 'may not' be in trouble but many of the ones I listed are and why would any money be pumped into loan 86? You need to think of it like a fund which invests in loans and then you buy a units of the fund, each one which gives you a proprtion of all the loans it holds. The QAA invested in #86 before it got into trouble and was suspended, as its suspended it cant sell it so each unit of the QAA contains a part of that loan. The good news is that as the QAA increases in size the holding of the loan gets diluted as each loan is spread across more units (though vice versa if it shrinks) so lets hope AC continues to thrive. The only loans the QAA doesnt hold are those that were suspended before it existed (possibly some windmills if they are reserved for GEIA) 30DAA is part of QAA incidentally.
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Post by swfab on Aug 3, 2017 20:01:35 GMT
You need to think of it like a fund which invests in loans and then you buy a units of the fund, each one which gives you a proprtion of all the loans it holds. The QAA invested in #86 before it got into trouble and was suspended, as its suspended it cant sell it so each unit of the QAA contains a part of that loan. The good news is that as the QAA increases in size the holding of the loan gets diluted as each loan is spread across more units (though vice versa if it shrinks) so lets hope AC continues to thrive. The only loans the QAA doesnt hold are those that were suspended before it existed (possibly some windmills if they are reserved for GEIA) 30DAA is part of QAA incidentally. Thank you as well ilmoro . Thanks to you and SteveT I understand the mechanics of these 2 accounts (QAA and 30DAA).
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Post by stuartassetzcapital on Aug 4, 2017 12:53:35 GMT
Hundreds of loans? I don't know if that is better or worse than the bulk of mine going into a single suspended loan? AC makes me nervous. Hi I'm sorry that is not true. The QAA is as perfectly diversified as possible. The drill down report shows this. It is impossible for the bulk of your QAA investment to be in a single suspended loan - I encourage you to contact customer services on the phone immediately and provide your account details as I know the technical implementation and know this is not possible.
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