am
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Assetz Capital (AC)
GBBA
Dec 21, 2015 18:13:38 GMT
Post by am on Dec 21, 2015 18:13:38 GMT
'Interestingly' looking at her GBBA (which was started in the 'early days') it is fully invested in 41 loans but 40.493% of the total investment is in 2 loans. The next highest holdings are 9.006% & 8.386% so 57.884% of her total investment is in 4 loans. Quite a few investments are for less than 1p.
My GEIA account has finally picked up a bit of shrapnel, after a long period of inactivity. Unfortunately it was only 96 millionths of one penny.
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am
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Post by am on Dec 21, 2015 14:26:52 GMT
Wot? Out of the kindness of their little bankers' hearts? Or because it might be them next time.
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am
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Assetz Capital (AC)
GBBA
Dec 21, 2015 12:21:56 GMT
Post by am on Dec 21, 2015 12:21:56 GMT
1) Would this not mean the lender ends up with cash in the GBBA, which it might not be possible to reinvest at the time, so it would lead to lenders losing income. 2) It's probably not feasible to give the loan back to the original lender when it comes out of suspension, so it would have to be sold on the secondary market, and depending on what triggered suspension it may not be readily saleable. 1) Yes, 2) Yes. So it's probably not an idea that would fly in practical terms, but I'll make sure the right people see it in the new year so they're at least aware it's been suggested. It all gets complicated, with scope for unforeseen and undesired consequences, but now you have the QAA you could have the QAA sell loan parts into the GBBA to substitute for the suspended loan. (One complication is that the QAA may not have any loans to sell that would not break the diversification rules for a particular lender's GBBA account.) This does rely on a flow of new loans so that the QAA could restock. Also, with the current size of the QAA, it might not have enough invested in GBBA eligible loans to cope with the suspension of a large loan, depending on how weighted to the GBBA that loan was.
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am
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Post by am on Dec 21, 2015 11:53:13 GMT
And my point stands. £25 is a "small amount" in anyone's money. A fiver is just an unnecessary irritant... Maybe to you and I but not to everyone - I am always suprised at how small the size of some of the purchases are each time a loan goes live - if you look at Recent Transactions spotting less than £25/10/5 isn't uncommon. I don't know why they would bother to invest in such small sums (unless accumulated interest) but its their choice.. I've been watching (on and off) trading in P2P Global, and it's quite surprising how small the majority of the trades are - in the hundreds of pounds rather than thousands. I know that commissions have come down in price a lot, and that there are low cost frequent trader rates, but even so that means that commission takes quite a bite.
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am
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Assetz Capital (AC)
GBBA
Dec 21, 2015 11:47:13 GMT
Post by am on Dec 21, 2015 11:47:13 GMT
It strikes me that there is a perfectly reasonable way around it - to define the terms of the provision fund associated with the account so that loans are transferred to it at full price the moment that trading is suspended in the loan. Then it would be the PF that is holding the loan at the time of the relevant vote, rather than the individual GBBA investors. It would of course require the relevant provision fund to be sufficiently well funded to cover the balance of as many loan units as are likely to be in "trading suspended" status simultaneously within the account(s) it is covering. No idea if that would work or not, will suggest it to the relevant people. Regardless it's a legal requirement that the provision fund is discretionary (as I understand it) so we couldn't make it automatic, but there may be a phrase that would cover that. 1) Would this not mean the lender ends up with cash in the GBBA, which it might not be possible to reinvest at the time, so it would lead to lenders losing income. 2) It's probably not feasible to give the loan back to the original lender when it comes out of suspension, so it would have to be sold on the secondary market, and depending on what triggered suspension it may not be readily saleable.
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am
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Funding Circle (FC)
SM rates
Dec 19, 2015 17:57:13 GMT
Post by am on Dec 19, 2015 17:57:13 GMT
Discovering that FC claims to be a technology company that does finance is the first event which has made me seriously consider getting out. But its b*llsh*t, surely, please? Edit: It's all right, I have read 'about us' We’re building
a better financial world
Funding Circle was created with a big idea:
To revolutionise the outdated banking system and secure a better deal for everyone.Someone must be trying to make the tekkies feel valued. A silly idea, they're Orcs, they know they're Orcs. Treat them like Orcs. FC's claimed competitive advantage is its credit rating algorithm, which in theory allows them to turn over loans faster and more cheaply, as they doesn't need do to expensive manual due diligence.
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am
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Post by am on Dec 18, 2015 13:23:50 GMT
8302 and 10076 Melton Mowbray and 9448 Wiltshire have just repaid early.
(Is it worth making this a sticky thread, for people to report early repaying loans, as FC don't make it easy to tell where the money that appeared in your balance came from.)
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am
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Post by am on Dec 16, 2015 23:35:41 GMT
They're offering borrowers 9%-11%. What does that translate to for lenders?
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am
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Post by am on Dec 16, 2015 12:51:12 GMT
My apologies for the link to the website. My purpose in posting it was to try and answer the question of how the storage site achieves an income of £40k a month. Not an excuse but it was my first post to this board. I joined Saving Stream on Monday and the pipeline loan in question caught my interest as the site is local to me. Tracking down web sites, if I've found the right ones, they have 300 vehicles stored on site. That alone would generate a large proportion of the indicated income.
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am
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Post by am on Dec 16, 2015 12:03:47 GMT
With regard to the storage site, SS give a value of £7.3m. However a quoted housebuilding company has (or proposes to acquire) an option to purchase the site for £7m. How does that affect SS's ability to realise the security in the event of a default?
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am
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Post by am on Dec 15, 2015 22:30:08 GMT
"Past performance is not a reliable guide to future performance". Am I alone in finding it not clear what variables are being presented. Would the Tweed (post code TD) figures related to the Berwick-on-Tweed area (post code TD15), rather than the whole post code?
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am
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Post by am on Dec 15, 2015 16:46:38 GMT
Following on from my earlier couple of question a self confessed p2p addict should ask, here is a third:
To what extent does a liquid secondary market render due diligence irrelevant ? (Would time be better spent selling loans [at fair price not best price] long before the maturity date) That only works if the risk on loans is backloaded. But we were recently told that the riskiest period of a RateSetter loan was towards the start of the loan.
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am
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Post by am on Dec 15, 2015 13:40:56 GMT
I have invested far more in stocks and shares then I have p2p but I spend far more time playing around with my p2p accounts Same here, but one of my reasons for spending time on P2P is to reduce the temptation to overtrade on equities.
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am
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Post by am on Dec 14, 2015 23:09:01 GMT
17157 fallen through -- "The borrowers circumstances have since changed. FC" in the 10 days since the loan was listed apparently. I think that (usually) translates to they've found a better deal from another lender.
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am
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Post by am on Dec 14, 2015 23:07:06 GMT
Anyone understand why 18316 is rated D ? Not really - the current ratio is low, but I think that's normal for retailers, who generally lack a debtors book. Net margin is under 5%, and is worse than that when tax is taken into account (it seems to be a sole trader). It's quite heavily geared even if the debts (mortgage?) aren't documented by FC. But unless there's something misleading about the balance sheet (e.g. property bought at a high and not revalued, or a large amount of goodwill arising on acquisition of the business and not amortised), or cash flow has collapsed in the last few months, this looks no different from an FC A+/A loan. I don't see why a business of this size is not a limited company.
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