IFISAcava
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Post by IFISAcava on Oct 3, 2017 15:57:06 GMT
The issue with Ablrate 'bid' size is that bids need to be backed up with hard (already deposited) cash .. there's no 'X day settlement period', and while you have a bid in you are losing potential interest .. so no, there's not likely to be many £500k "offers to buy" in the queue, even at 99%. That doesn't mean that if you offer to sell £500k at 98%, there won't be a sudden rush of buyers appear waving direct debits at you. The reverse situation applies on Ly .. if you put £500k up 'for sale' (only available at par) you are (for no discernible reason) forgoing the interest on same, so people don't. Doesn't mean you couldn't buy £500k if you happen to have the money .. buy what's there, and watch the rest magically appear. Did Ablrate change their market? It used to be that you keep earning interest while loan parts are on sale. (If I remember correctly) it's the bids that are the issue - if you put in 10 bids on different loans for £500 you have to have £5000 deposited, which then isn't earning interest for a long as the bids are unmatched.
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david42
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Post by david42 on Oct 3, 2017 16:30:38 GMT
That doesn't mean that if you offer to sell £500k at 98%, there won't be a sudden rush of buyers appear waving direct debits at you. Have you tried to sell £500k on Ablrate? All I know for certain is that the volume normally traded on the market is small - based on my experience when I have been at the head of the queue. For example I have been at the head of the offered queue on one loan for most or all of the last month and I can report 15 sales of that loan totalling £1,500 for the whole of September. That is typical of my experience on Ablrate. We can only speculate whether people would buy more if I offered a lower price. My limited experience with small price adjustments on Ablrate suggests that people do not buy more when the price is lower. And my personal reaction if I see a price that is significantly out of line is to wonder what is wrong with the loan rather than to have the confidence to buy a bargain. It would be a fascinating experiment to test whether significant price reductions triggered an increase in market volume.
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Post by GSV3MIaC on Oct 3, 2017 17:15:53 GMT
Nope, sadly I've not got any £500k investments to experiment with. 8>.
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ceejay
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Post by ceejay on Oct 4, 2017 9:19:47 GMT
That doesn't mean that if you offer to sell £500k at 98%, there won't be a sudden rush of buyers appear waving direct debits at you. Have you tried to sell £500k on Ablrate? All I know for certain is that the volume normally traded on the market is small - based on my experience when I have been at the head of the queue. For example I have been at the head of the offered queue on one loan for most or all of the last month and I can report 15 sales of that loan totalling £1,500 for the whole of September. That is typical of my experience on Ablrate. We can only speculate whether people would buy more if I offered a lower price. My limited experience with small price adjustments on Ablrate suggests that people do not buy more when the price is lower. And my personal reaction if I see a price that is significantly out of line is to wonder what is wrong with the loan rather than to have the confidence to buy a bargain. It would be a fascinating experiment to test whether significant price reductions triggered an increase in market volume. I've not been in ablrate for very long: although I think I've grasped the mechanics of the SM, I'm pretty sure I haven't mastered the psychology of it, which is a lot more interesting. There are bids to buy on (I think) every loan, in many cases over 100%; at the same time, there are offers to sell, often in the 101-102% range. And yet the gap, which doesn't seem all that large, refuses to close. If the sellers really want to sell (not always the case, I suspect) and the buyers really want to buy (more likely, as they've had to put up real cash) then you'd think that a deal could be found. It would be nice to think that participants in the market are all doing their own finely-tuned calculations to evaluate the precise worth of a loan, and making their bids and offers accordingly. However, I'm pretty certain that this is not the case, and that in reality there is a lot of irrational reaction to other people's prices, mixed in of course with some raw tactical manouvering.
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SteveT
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Post by SteveT on Oct 4, 2017 10:26:48 GMT
I've not been in ablrate for very long: although I think I've grasped the mechanics of the SM, I'm pretty sure I haven't mastered the psychology of it, which is a lot more interesting. There are bids to buy on (I think) every loan, in many cases over 100%; at the same time, there are offers to sell, often in the 101-102% range. And yet the gap, which doesn't seem all that large, refuses to close. If the sellers really want to sell (not always the case, I suspect) and the buyers really want to buy (more likely, as they've had to put up real cash) then you'd think that a deal could be found. It would be nice to think that participants in the market are all doing their own finely-tuned calculations to evaluate the precise worth of a loan, and making their bids and offers accordingly. However, I'm pretty certain that this is not the case, and that in reality there is a lot of irrational reaction to other people's prices, mixed in of course with some raw tactical manouvering. Aside from the wildly optimistic bids (which I don't understand; they're simply dead money), the rest of the Ablrate SM is pretty sophisticated IMO. "Best available" pricing moves up and down as market demand and/or loan sentiment changes. The bid - offer spread is pretty consistent and under-priced offers / over-priced bids get snapped up pretty quickly. 1% is broadly a full month's interest so it can pay to play a patient game and wait a few days to get a better price. A couple of free tips (but don't tell everyone  ): - Best time to buy is when a huge new loan launches - Best time to sell is when the PM's been empty for ages - Prices tend to rise over the weekend (cash burning holes in idle pockets) - If looking to sell, list in modest chunks (£300-500 seems to be a popular range). If you stick £5000 up for sale at once then someone's likely to cut their offer and jump in front of you, whereas they may figure a few hundred will sell soon enough and leave them back at the top.
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Post by valuehunter on Oct 4, 2017 21:08:50 GMT
Some nice tips there Steve...the new hat's a real beaut btw |
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