mikes1531
Member of DD Central
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IFISA
Nov 12, 2017 16:35:40 GMT
Post by mikes1531 on Nov 12, 2017 16:35:40 GMT
I expect the ISA to be very good for AC, very bad for us standard investors. There will be a flood of money come in, the ISA rate will be 3% or 4% with lots of money behind it. Rates are always a balance between investors and borrowers, with a flood of investor money the rates will go down and down and us pre-ISA investors will get even worse than the 8% widely available now. I note from the AC pipeline that one loan will be at the rate of 5%. I'm getting more than that from my occasional one year grabs on RS, and 4.5-5.6% by careful monitoring of the RS rolling - both with a "provision fund". I'll not take risk for less than 8%. I see that AC just made a £7.5M loan at 6.3% (#574, 10/Nov). I presume most of that must have been funded by the QAA/30DAA, as I can't see AC putting any of that into the GBBA, and I wouldn't expect many MLIA investors to be interested at that rate. This loan might be eligible for the PSIA, but with that paying 5.5% to investors there's isn't much left over to put into the PF. Have AC given any indication of the total size of PSIAs? If the AC IFISA becomes available soon, and much of the incoming investors are very conservative, then a lot of that inflow could take up residence in the QAA/30DAA, and a loan like #574 could be good for supporting that.
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trouble
Member of DD Central
Posts: 127
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IFISA
Nov 12, 2017 17:09:00 GMT
Post by trouble on Nov 12, 2017 17:09:00 GMT
I note from the AC pipeline that one loan will be at the rate of 5%. I'm getting more than that from my occasional one year grabs on RS, and 4.5-5.6% by careful monitoring of the RS rolling - both with a "provision fund". I'll not take risk for less than 8%. I see that AC just made a £7.5M loan at 6.3% (#574, 10/Nov). I presume most of that must have been funded by the QAA/30DAA, as I can't see AC putting any of that into the GBBA, and I wouldn't expect many MLIA investors to be interested at that rate. This loan might be eligible for the PSIA, but with that paying 5.5% to investors there's isn't much left over to put into the PF. Have AC given any indication of the total size of PSIAs? If the AC IFISA becomes available soon, and much of the incoming investors are very conservative, then a lot of that inflow could take up residence in the QAA/30DAA, and a loan like #574 could be good for supporting that. Loans of that size create a hell of a concentration risk, I do wonder if the hamsters are churning out a similar number of loans as before but simply larger. When you read the stats it seems to be all about funds borrowed rather than number of loans, whereas i want the number of loans to vastly increase to create the diversification mitigant i crave as an investor, anyone keep a tab on number of loans and debt totals per month since AC started?
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IFISA
Nov 12, 2017 18:27:06 GMT
Post by elephantrosie on Nov 12, 2017 18:27:06 GMT
...and even 8% loans are increasingly rare! But 8% in an IFISA is equivalent to 14.5% outside (for a 45% rate payer) The 7% loans (or GEIA/GBBA) are 12.7% equivalent Even the 6%ers agross up to 10.9% (obv the differentials less for lower rate payers). So well worth having IMHO. like your effort to calculate them
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elliotn
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Post by elliotn on Nov 24, 2017 3:11:05 GMT
Not sure if it is appropriate to post this here by way of information, but before deciding to join AC I also registered an interest in the Funding Circle ISA. I received notification today they will be rolling this out to their existing customers from 30 November. I am no longer interested but it may be interesting to see how the AC ISA compares. EDIT: I see something has been posted on the FC forum regarding this, so please delete if inappropriate. There is also a dedicated IFISA thread under General P2P Discussion.
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sand2880
Member of DD Central
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IFISA
Nov 27, 2017 14:03:18 GMT
Post by sand2880 on Nov 27, 2017 14:03:18 GMT
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
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Post by ilmoro on Nov 27, 2017 14:33:38 GMT
Just google key terms uk peer millions ft & its readable. Returns dropping to 6-7% from 9% due to 'challenger banks' competition.
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IFISAcava
Member of DD Central
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IFISA
Nov 27, 2017 14:35:43 GMT
via mobile
Post by IFISAcava on Nov 27, 2017 14:35:43 GMT
Trend seems to be not allowing transfers initially, which seeks odd as surely most interested parties will already have subscribed to an IFISA for current year. AC confirmed that the software is set up for transfers, and I have a medium large sum ready to transferred as and when, but I guess we'll have to wait and see.
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IFISAcava
Member of DD Central
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IFISA
Nov 27, 2017 14:47:23 GMT
Post by IFISAcava on Nov 27, 2017 14:47:23 GMT
Quotation from AC in the FT article suggests that "recent annual returns of 9 per cent would fall to 6 or 7 per cent because it wants to lend to lower risk companies in the face of growing competition from small “challenger” banks."
Questions include whether the lower return will really represent a lower risk, and whether the higher rate/higher risk loans will still be available in the IFISA. Having said that, the recent loan pipeline is indeed much more in the 7-8% range, with very few higher than that, and quite a few lower. As long as the IFISA offering mirrors the non-IFISA, it's a no-brainer to transfer money into the IFISA if one likes the AC platform (as I do).
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IFISA
Nov 27, 2017 16:43:51 GMT
Post by eascogo on Nov 27, 2017 16:43:51 GMT
I'm sure many of you have found out that googling the article title reveals the identical url and displays said article without the need for registration.
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oldgrumpy
Member of DD Central
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IFISA
Nov 27, 2017 17:08:38 GMT
Post by oldgrumpy on Nov 27, 2017 17:08:38 GMT
If Assetz Capital and one or two other platforms actually are ceasing to lend to the "higher risk" companies, resulting in lender rates of 6%-7%, the rejected borrowers will still surely come up at 9-12% on other platforms. We'll still get the opportunity but will still need to be probing concerning DD, including criticising (DD boastful) platforms when evidence is revealed of the lack of it, (and obstacles being placed on us doing it effectively).
As I said about the recent 5% "deal" on AC, with inflation being around 3%, I refuse to lend at 5% (minus tax for me = 4%) on any platform which expects me to take any risk with my capital! Even 8% loans I look at carefully before investing.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
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Post by ilmoro on Nov 27, 2017 18:38:13 GMT
If Assetz Capital and one or two other platforms actually are ceasing to lend to the "higher risk" companies, resulting in lender rates of 6%-7%, the rejected borrowers will still surely come up at 9-12% on other platforms. We'll still get the opportunity but will still need to be probing concerning DD, including criticising (DD boastful) platforms when evidence is revealed of the lack of it, (and obstacles being placed on us doing it effectively). As I said about the recent 5% "deal" on AC, with inflation being around 3%, I refuse to lend at 5% (minus tax for me = 4%) on any platform which expects me to take any risk with my capital! Even 8% loans I look at carefully before investing. im sure the chance for borrowers to be probed by a banana weilding gorilla is a marketing opportunity that the high risk platforms cant afford to miss 
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matt
Posts: 16
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Post by matt on Nov 30, 2017 15:38:50 GMT
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matt
Posts: 16
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IFISA
Nov 30, 2017 15:43:29 GMT
Post by matt on Nov 30, 2017 15:43:29 GMT
"The scheme will open in December to include all automated Assetz investment accounts, before later including the Manual Loan Investment Account (MLIA) in early 2018."
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ianj
Member of DD Central
Posts: 656
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IFISA
Nov 30, 2017 15:56:58 GMT
Post by ianj on Nov 30, 2017 15:56:58 GMT
The article goes on to say.......
Stuart Law appears to be unware of details of the Ablrate IFISA offering then!
Edit: To be fair the above statement wasn't atributed to Stuart, so maybe just the usual journalistic license with the facts.
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n
Member of DD Central
Yet another Nick
Posts: 881
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IFISA
Nov 30, 2017 16:05:00 GMT
Post by n on Nov 30, 2017 16:05:00 GMT
The article goes on to say....... Stuart Law appears to be unware of details of the Ablrate IFISA offering then! Edit: To be fair the above statement wasn't atributed to Stuart, so maybe just the usual journalistic license with the facts. ... and LandLordInvest.
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