Post by pickles on Jan 20, 2018 8:28:18 GMT
The way the FC selling engine chooses loans to sell is completely opaque, and having just sold out a five-figure portfolio I am none the wiser.
Back when the switch happened, I was 100% in property with 6+ months remaining, and heavy in some borrowers. The plan was to sell out before any hit the penultimate payment. Maximum exposure was around 4.0%. Yesterday was the first selling date. Quite a few property loans had paid early and been re-invested along with interest, so property was down to around 70% of the portfolio.
The autobid engine will only buy loans up to the 0.5% exposure limit. So surely the selling engine should work to increase diversification, or at least maintain it? Or, in the worst case it would be random? So by selling bit by bit, perhaps matching sale quantities to specific holdings, I should be able to sell up to the point that the shortest dated loans were gone and stop.
Not at all. Only the recently-acquired loans were sold at first, regardless of the amount chosen to sell. At one point my max exposure was at nearly 20%. I had to sell the whole portfolio to get the last near-dated loan sold.
The algorithm, whatever it is, wouldn't work on a normally-diversified autobid portfolio either. Trying to sell small amounts resulted in both parts of each loan being sold, instead of one part of each of a larger number of loans.
Back when the switch happened, I was 100% in property with 6+ months remaining, and heavy in some borrowers. The plan was to sell out before any hit the penultimate payment. Maximum exposure was around 4.0%. Yesterday was the first selling date. Quite a few property loans had paid early and been re-invested along with interest, so property was down to around 70% of the portfolio.
The autobid engine will only buy loans up to the 0.5% exposure limit. So surely the selling engine should work to increase diversification, or at least maintain it? Or, in the worst case it would be random? So by selling bit by bit, perhaps matching sale quantities to specific holdings, I should be able to sell up to the point that the shortest dated loans were gone and stop.
Not at all. Only the recently-acquired loans were sold at first, regardless of the amount chosen to sell. At one point my max exposure was at nearly 20%. I had to sell the whole portfolio to get the last near-dated loan sold.
The algorithm, whatever it is, wouldn't work on a normally-diversified autobid portfolio either. Trying to sell small amounts resulted in both parts of each loan being sold, instead of one part of each of a larger number of loans.
