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Post by df on Dec 17, 2017 18:18:50 GMT
Hmmm. I read this with interest not knowing as much as I should about AC's mechanisms. I put in a few k in one go a couple of months ago and put all of it in the GBBA. Unless I'm using the site incorrectly, it looks like it has purchased 36 loans so far with around 10% left in cash. I think I should be happy with that and it certainly seems contrary to some of the 20% posts above. Perhaps they've improved the algorithm or perhaps it was a scarcity of eligible loans that limited how much was invested into each one. Out of interest, of your 36 loan holdings, what are the 3 largest and what % has it stuck into each of them? If you've 10% cash still to be invested, I'll be surprised if you don't have at least 1 holding up at the 20% limit (likely #544) I have 53 loans in GBBA. 544 is only 2.3%. The three largest are 227 (15.8%), 441 (14.4%) and 304 (8.2%).
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mikes1531
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Post by mikes1531 on Dec 17, 2017 23:11:50 GMT
I have 53 loans in GBBA. 544 is only 2.3%. The three largest are 227 (15.8%), 441 (14.4%) and 304 (8.2%). I have 46 loans in my small GBBA, but 51% is in three loans, and one of those three is #227. (I don't believe I've ever made a withdrawal from my GBBA, so that doesn't explain the lack of diversification.)
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michaelc
Member of DD Central
Say No To T.D.S.
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Post by michaelc on Dec 18, 2017 20:30:05 GMT
Could a reasonable strategy that might emulate what I wrongly thought the GBBA was doing, to simply block invest the same amount in any loan manually that meets certain criteria - e.g. loan rate >= 8% ? Obviously nowhere near as good as doing proper DD on every loan but at least it might do what the GBBA perhaps should do and its not that hard to log in every couple of days and drip cash into any new loans?
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Post by df on Dec 18, 2017 20:53:41 GMT
Could a reasonable strategy that might emulate what I wrongly thought the GBBA was doing, to simply block invest the same amount in any loan manually that meets certain criteria - e.g. loan rate >= 8% ? Obviously nowhere near as good as doing proper DD on every loan but at least it might do what the GBBA perhaps should do and its not that hard to log in every couple of days and drip cash into any new loans? This way you can achieve maximum diversification across AC loans. However, limiting it to 8%+ will consequently limit your diversification. There aren't many new loans coming at this rate.
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Post by stuartassetzcapital on Dec 19, 2017 15:08:47 GMT
Hi everyone. I can confirm the diversification algorithm is being upgraded finally in January (end of) and the PF will be paying late interest monthly from January also. It has taken a while to update these processes but hopefully that will answer most questions above.
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Post by chris on Dec 19, 2017 16:04:45 GMT
Hi everyone. I can confirm the diversification algorithm is being upgraded finally in January (end of) and the PF will be paying late interest monthly from January also. It has taken a while to update these processes but hopefully that will answer most questions above. Without wanting to publicly shame and correct my boss, both are scheduled for mid-Q1 (i.e. February) not January. I'll presume that his dictation software went wrong again and mistook the names of those two months.
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happy
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Post by happy on Dec 19, 2017 16:33:53 GMT
TBH a working solution any time in Q1 would be perfect and worth the wait for me as this fixes almost all of the issues I've ever had with AC automated accounts, many thanks in advance.
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savernake
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Post by savernake on Dec 19, 2017 17:02:25 GMT
Hi everyone. I can confirm the diversification algorithm is being upgraded finally in January (end of) and the PF will be paying late interest monthly from January also. It has taken a while to update these processes but hopefully that will answer most questions above. That's brilliant news! I have been avoiding the automatic accounts due to the perceived lack of diversification and poor PF protection. Once the algorithm is fixed and we get decent diversification I will be more than happy to invest. Also great to hear the PF will begin paying out earlier to cover missed interest payments. If AC could go a step further and have a PF which automatically took over any loan which defaulted then we would have the perfect product - it would blow all the competition out of the water.
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jonah
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Post by jonah on Dec 19, 2017 19:39:10 GMT
Hi everyone. I can confirm the diversification algorithm is being upgraded finally in January (end of) and the PF will be paying late interest monthly from January also. It has taken a while to update these processes but hopefully that will answer most questions above. Ignoring the precise timing issue (  ) can I make sure I understand the point in bold in the approve.... does this mean that if loan X is either late or in default, the GBBA PF will* step in and pay the expected interest schedule for holdings in the GBBA, instead of as it is now when it waits until any recovery activities are complete? If this is the case, will this include for any loans currently late / in default? I assume that this will not include any interim capital repayments for previously amortising loans though? PS - sounds like a good step forward. * subject to agreement from the relevant approval board, no guarantees, this isn't insurance etc
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mary
Member of DD Central
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Post by mary on Dec 19, 2017 20:04:45 GMT
Hi everyone. I can confirm the diversification algorithm is being upgraded finally in January (end of) and the PF will be paying late interest monthly from January also. It has taken a while to update these processes but hopefully that will answer most questions above. That's brilliant news! I have been avoiding the automatic accounts due to the perceived lack of diversification and poor PF protection. Once the algorithm is fixed and we get decent diversification I will be more than happy to invest. Also great to hear the PF will begin paying out earlier to cover missed interest payments. If AC could go a step further and have a PF which automatically took over any loan which defaulted then we would have the perfect product - it would blow all the competition out of the water. That would bring me back. I got stuck with diversification issues straight away, and still have £0.000001 invested. Simplicity and predictability, which is what I thought GBBA was, is what I desire and crave in a hands-off P2P offering.
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warn
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Curmudgeon
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Post by warn on Dec 20, 2017 14:58:00 GMT
I got stuck with diversification issues straight away, and still have £0.000001 invested. That's an extraordinarily round amount for an AC holding
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ashtondav
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Post by ashtondav on Dec 20, 2017 15:25:54 GMT
Wayhay! Splendid news. Once implemented GBBA will be receiving my funds.
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hantsowl
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Post by hantsowl on Dec 20, 2017 15:36:03 GMT
Hi everyone. I can confirm the diversification algorithm is being upgraded finally in January (end of) and the PF will be paying late interest monthly from January also. It has taken a while to update these processes but hopefully that will answer most questions above. Without wanting to publicly shame and correct my boss, both are scheduled for mid-Q1 (i.e. February) not January. I'll presume that his dictation software went wrong again and mistook the names of those two months. Good news about the diversification algorithm. Can you clarify whether this will apply ONLY to new investments from Feb onwards or whether existing investments in GBBA2 will also be diversified into smaller chunks? Also, will the same process be applied to investments in the Property account?
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Post by chris on Dec 20, 2017 15:39:50 GMT
Without wanting to publicly shame and correct my boss, both are scheduled for mid-Q1 (i.e. February) not January. I'll presume that his dictation software went wrong again and mistook the names of those two months. Good news about the diversification algorithm. Can you clarify whether this will apply ONLY to new investments from Feb onwards or whether existing investments in GBBA2 will also be diversified into smaller chunks? Also, will the same process be applied to investments in the Property account? Existing investments will be included and rebalanced.
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jjc
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Post by jjc on Dec 20, 2017 16:33:00 GMT
Good news about the diversification algorithm. Can you clarify whether this will apply ONLY to new investments from Feb onwards or whether existing investments in GBBA2 will also be diversified into smaller chunks? Also, will the same process be applied to investments in the Property account? Existing investments will be included and rebalanced. Late to this good news & possibly missed some beats chris but what about the GBBA1, PSIA (& GEIA?) existing holdings - will these be rebalanced too?
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) can I make sure I understand the point in bold in the approve.... does this mean that if loan X is either late or in default, the GBBA PF will* step in and pay the expected interest schedule for holdings in the GBBA, instead of as it is now when it waits until any recovery activities are complete?
