ton27
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Post by ton27 on Feb 6, 2018 13:54:11 GMT
Indeed, it is not a trivial matter and to stem further (justified) criticism it will need AC to respond in a timely and positive way. Generally their communication has been good but this appears to be a problem for them.
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ashtondav
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Post by ashtondav on Feb 8, 2018 18:27:11 GMT
I have every confidence that AC will sort this imminently. If they do not they are a "busted flush" in a very important p2p market segement: those who want a simple "fire and forget" account. You either need to be a ZOPA, where diversification reduces risk, or a RS where a provision fund reduces risk. Currently AC operate accounts where there is little diversification AND no risk reduction (in a meaningful timescale) from a Provision Fund. That's an unfit for purpose business model.
On another thread AC have assured that news is indeed imminent. We wait with baited breath to see if AC is a viable platform.
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IFISAcava
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Post by IFISAcava on Feb 8, 2018 19:37:41 GMT
I have every confidence that AC will sort this imminently. If they do not they are a "busted flush" in a very important p2p market segement: those who want a simple "fire and forget" account. You either need to be a ZOPA, where diversification reduces risk, or a RS where a provision fund reduces risk. Currently AC operate accounts where there is little diversification AND no risk reduction (in a meaningful timescale) from a Provision Fund. That's an unfit for purpose business model. On another thread AC have assured that news is indeed imminent. We wait with baited breath to see if AC is a viable platform. *For the fire and forget accounts. Doesn't apply to the QAA/30-day/MLIA
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daveb4
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Post by daveb4 on Feb 17, 2018 15:13:12 GMT
Just to give a little confidence to some and I would be interested in others thoughts put 2 amounts in two different accounts over last two months in GBBA2.
Smaller amount was four figure sum and drip fed slowish over about 1 month. Top 3 loans 21% (about equal) top 5 loans 29%. Not too bad.
Larger amount five figure sum (tfd ISA) and filled over about two weeks. Top 3 loans 39% again about equal but top 5 loans 55%.
Obviously not proof of drip feeding but I also put cash in when a loan was due to draw or just after in the smaller amount and had a little success in purchasing therefore reducing over percentages across the board.
I know this is an invest and forget account but debateably looks as if you can sort of manipulate?
At least we know we are getting closer to the new system which should help more.
I would like fewer large loans they scare me and would help reduce the percentage we are all in.
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Post by chris on Feb 17, 2018 17:04:48 GMT
Just to give a little confidence to some and I would be interested in others thoughts put 2 amounts in two different accounts over last two months in GBBA2. Smaller amount was four figure sum and drip fed slowish over about 1 month. Top 3 loans 21% (about equal) top 5 loans 29%. Not too bad. Larger amount five figure sum (tfd ISA) and filled over about two weeks. Top 3 loans 39% again about equal but top 5 loans 55%. Obviously not proof of drip feeding but I also put cash in when a loan was due to draw or just after in the smaller amount and had a little success in purchasing therefore reducing over percentages across the board. I know this is an invest and forget account but debateably looks as if you can sort of manipulate? At least we know we are getting closer to the new system which should help more. I would like fewer large loans they scare me and would help reduce the percentage we are all in. Currently diversification is directly linked to the number of loans and estimated availability on the market for immediate investment. The system is optimised towards deploying cash quickly rather than widely but will distribute widely when there is immediate availability. Within the next two weeks we'll be launching an update to the system that will then take everyone's holdings in a given account and start diversifying them amongst themselves to, over time, trend everyone's holdings towards the average distribution in the account. Around 8 - 10 weeks after that there'll be another update to the platform that will include an updated algorithm for that initial investment that will try to be a bit smarter about including upcoming loans in its calculation and will make sure the account as a whole doesn't become too heavily invested in any single loan. Time allowing we'll also update MLA instructions at that point to allow target holdings to be set rather than simple buy / sell orders, i.e. invest this amount and buy more as the loan amortises to maintain that level of investment. Bespoke investment accounts, which include allowing lenders to tweak parameters like maximum amount invested in a single loan, should follow in the next major update after that.
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Post by vaelin on Feb 17, 2018 17:24:08 GMT
Just to give a little confidence to some and I would be interested in others thoughts put 2 amounts in two different accounts over last two months in GBBA2. Smaller amount was four figure sum and drip fed slowish over about 1 month. Top 3 loans 21% (about equal) top 5 loans 29%. Not too bad. Larger amount five figure sum (tfd ISA) and filled over about two weeks. Top 3 loans 39% again about equal but top 5 loans 55%. Obviously not proof of drip feeding but I also put cash in when a loan was due to draw or just after in the smaller amount and had a little success in purchasing therefore reducing over percentages across the board. I know this is an invest and forget account but debateably looks as if you can sort of manipulate? At least we know we are getting closer to the new system which should help more. I would like fewer large loans they scare me and would help reduce the percentage we are all in. Currently diversification is directly linked to the number of loans and estimated availability on the market for immediate investment. The system is optimised towards deploying cash quickly rather than widely but will distribute widely when there is immediate availability. Within the next two weeks we'll be launching an update to the system that will then take everyone's holdings in a given account and start diversifying them amongst themselves to, over time, trend everyone's holdings towards the average distribution in the account. Around 8 - 10 weeks after that there'll be another update to the platform that will include an updated algorithm for that initial investment that will try to be a bit smarter about including upcoming loans in its calculation and will make sure the account as a whole doesn't become too heavily invested in any single loan. Time allowing we'll also update MLA instructions at that point to allow target holdings to be set rather than simple buy / sell orders, i.e. invest this amount and buy more as the loan amortises to maintain that level of investment. Bespoke investment accounts, which include allowing lenders to tweak parameters like maximum amount invested in a single loan, should follow in the next major update after that. This is good stuff. My GBBA2 already appears to be constantly buying and selling on its own accord. Why is it doing that? One thing I do wonder about is whether returns may be affected. Suppose you have accounts continually buying and selling loans segments. Is it possible that an account could sell a loan segment that has yet to pay its monthly interest whilst receiving another loan segments that is already fully paid for that month? This would presumably result in some accounts underperforming whilst others over-perform. Have you measured monthly returns during testing?
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Post by chris on Feb 17, 2018 17:30:15 GMT
Currently diversification is directly linked to the number of loans and estimated availability on the market for immediate investment. The system is optimised towards deploying cash quickly rather than widely but will distribute widely when there is immediate availability. Within the next two weeks we'll be launching an update to the system that will then take everyone's holdings in a given account and start diversifying them amongst themselves to, over time, trend everyone's holdings towards the average distribution in the account. Around 8 - 10 weeks after that there'll be another update to the platform that will include an updated algorithm for that initial investment that will try to be a bit smarter about including upcoming loans in its calculation and will make sure the account as a whole doesn't become too heavily invested in any single loan. Time allowing we'll also update MLA instructions at that point to allow target holdings to be set rather than simple buy / sell orders, i.e. invest this amount and buy more as the loan amortises to maintain that level of investment. Bespoke investment accounts, which include allowing lenders to tweak parameters like maximum amount invested in a single loan, should follow in the next major update after that. This is good stuff. My GBBA2 already appears to be constantly buying and selling on its own accord. Why is it doing that? One thing I do wonder about is whether returns may be affected. Suppose you have accounts continually buying and selling loans segments. Is it possible that an account could sell a loan segment that has yet to pay its monthly interest whilst receiving another loan segments that is already fully paid? This would presumably result in some accounts underperforming whilst others over-perform. Have you measured monthly returns during testing? That shouldn't be possible. If a loan is earning 0% interest, because an interest payment has been made early, then the loan is blocked from sale. Interest is calculated daily, so whomever is holding a loan unit at midnight receives the interest for that day at the point it is paid, with ownership back calculated at the point of repayment. So as long as your funds are invested rather than held in cash then you'll be receiving interest. If the account is buying and selling it's likely to be trying to diversify itself, but that calculation sometimes doesn't work as it expects so it ends up buying back into the same loan. The revised algorithm coming in 8-10 weeks should reduce opportunity for that behaviour.
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Post by vaelin on Feb 17, 2018 17:43:55 GMT
This is good stuff. My GBBA2 already appears to be constantly buying and selling on its own accord. Why is it doing that? One thing I do wonder about is whether returns may be affected. Suppose you have accounts continually buying and selling loans segments. Is it possible that an account could sell a loan segment that has yet to pay its monthly interest whilst receiving another loan segments that is already fully paid? This would presumably result in some accounts underperforming whilst others over-perform. Have you measured monthly returns during testing? That shouldn't be possible. If a loan is earning 0% interest, because an interest payment has been made early, then the loan is blocked from sale. Interest is calculated daily, so whomever is holding a loan unit at midnight receives the interest for that day at the point it is paid, with ownership back calculated at the point of repayment. So as long as your funds are invested rather than held in cash then you'll be receiving interest. If the account is buying and selling it's likely to be trying to diversify itself, but that calculation sometimes doesn't work as it expects so it ends up buying back into the same loan. The revised algorithm coming in 8-10 weeks should reduce opportunity for that behaviour. If my account is already trying to diversify itself, what change is coming in 2 weeks? I'm definitely looking forward to those bespoke investments accounts, by the way. I said this on the thread where Stuart initially mentioned it, but I am not sure if it was seen. It would be very useful if lenders could specify a maximum percentage of the account value (or maximum GBP value) to be allocated to each loan (or, better yet, to each borrower), so that they can enforce their own risk tolerance onto the account. That way they will not accidentally end up overexposed to individual loans.
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Post by chris on Feb 17, 2018 17:54:08 GMT
That shouldn't be possible. If a loan is earning 0% interest, because an interest payment has been made early, then the loan is blocked from sale. Interest is calculated daily, so whomever is holding a loan unit at midnight receives the interest for that day at the point it is paid, with ownership back calculated at the point of repayment. So as long as your funds are invested rather than held in cash then you'll be receiving interest. If the account is buying and selling it's likely to be trying to diversify itself, but that calculation sometimes doesn't work as it expects so it ends up buying back into the same loan. The revised algorithm coming in 8-10 weeks should reduce opportunity for that behaviour. If my account is already trying to diversify itself, what change is coming in 2 weeks? I'm definitely looking forward to those bespoke investments accounts, by the way. I said this on the thread where Stuart initially mentioned it, but I am not sure if it was seen. It would be very useful if lenders could specify a maximum percentage of the account value (or maximum GBP value) to be allocated to each loan (or, better yet, to each borrower), so that they can enforce their own risk tolerance onto the account. That way they will not accidentally end up overexposed to individual loans. The updated in 2 weeks allows two lenders to exchange loan units without requiring idle funds. That allows a much more effective algorithm to redistribute investments through direct exchange. Currently a sale and a purchase are required which also requires idle funds.
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