Old GBBA (1) Frozen & GBBA Mark 2 at A Lower Rate - 6.25%

Well summarised. I read this too. Bit of an odd time to do this, because I would imagine Christmas is a time of drop off in loan demand unless AC might be thinking of hoovering up some of those low interest manual loans

They're going to be up against the new portfolio loans from ABLRate, at a higher APR, albeit with no direct protection (but then protection on the GBBA/GEIA is a bit flaky too). ABLRate are also already flying their ISA, so as a (minor) AC equity investor I hope they have their water fowl neatly collimated before too long. I imagine the Xmas 'loan drought' must be getting under way shortly.

so gbba 1 is dead which now makes the diversity problem for the remaining investers even more pressing, as loans pay off and new loans do not occur how is AC going to manage the risc to the.  remaining investers to the promise in the original offer statement of no more than 20% exposure  and a implied promise of much better diversity. Sorry I think AC are sleep walking into major problems, with if the PF fails in any way and investers, and i am not one, run to the fsa screaming foul if their losses are high due to exposure to an indivdual loan in their fund in excess of  the funds rules.

AC in effect are payed to manage the funds of the investers to the deal offered and if they fail.??SSSSS

Thought the rate would lower sooner to be honest.

For some time now they have been trying to buy in business at cheaper rates and I would hope a better average of businesses than some other platforms. Hopefully this will work.

This may clear out some of the secondary market as well.

I like the main individual investing account and keep spare cash in the GBBA so works for me as one of 6 platforms.

IMHO Aseetz are going for the 'put the cash in and leave' investors and I have introduced a number of friends on this basis and they are very happy with rate and does also get them interested in P2P.

6.25% is low for us but for many out there it is very good.

ISA at 5%?

My GBBA was having a lot of buying and selling yesterday... lots until 1 minute to midnight when it stopped. Has anyone had any trades since then, ie on the 17th or later?

If they have stopped all trading then I wonder what happens if one of my holdings which is no longer eligible has issues... hopefully not a scenario which will happen.

Edit: This is fixed... probably by Chris / his boot!

To be honest I was expecting AC to force the account to withdraw all repayment (which they allude to in the email) so I will be pleasantly surprised if it buys any more loan parts with its uninvested cash before then.

Edit: Chris' note below clarifies this point too!

It is if you want to cash in your funds and you find that 20% is invested in a defaulted loan, or a loan that nobody else wants!

Couple of points where I can hopefully add some clarity.

Series 1 and 2 will share the same coding until the new algorithm is released in mid-Q1 where all accounts, including series 1, will benefit from the changes.

That algorithm will be far quicker and more scalable than the existing solution so the gaps between the market running on any given loan will be much shorter, it will also be far more tolerant of errors so the aim is no more manual application of "boots" to servers.  It is designed from the ground up to self recover in the event of any hardware or software failures as well as to detect when it gets itself into a "stalled" state where it thinks it's working but isn't actually doing anything productive.

Series 1 will be shut to all new funds entering the account, including returned capital.  So the account itself will slowly wind down as capital is returned.  Any funds already invested in the account but not yet deployed into loan units will remain with the system investing those funds as supply of loans allows.

A payout from the PF is indeed imminent.  Worth noting that as it stands the reported balances of the provision funds are also cash at this point in time and do not include future income or expected recoveries that could boost the PF value.

The series 2 account will have a seeded PF fund that is expected to cover plenty of growth prior to it becoming self sustaining from interest payments.