Slowdown in credited interest?

Most of my loans have repayments timed for the end of the month. Therefore, it's usual for my accrued interest figure to grow during the month, peak around the 25th and then gradually come down until around the 7th of the next month.

I can confirm that there is no slowdown of interest caused by the system that has been observed, reported or likely. The other explanation above that your unique loan book holdings and the date that they each pay their monthly interest is the likely answer but the lender desk will review if you have any evidence to the opposite. Many thanks

I'm only on a phablet at the moment, so can't easily collate the historic info.

Briefly, however, the average daily figure for accrued interest has more than doubled in 5 months, yet my total investment has increased by only around 11% in that time.

Similarly, my total AC investment has approximately doubled in 15 months, yet accrued interest sits at around quintuple the average value of 15 months ago.

My mix across the different accounts has changed a bit (A bit less in 30day and qaa), but I can only assume that the rate at which "accrued" interest converts to "real" interest has slowed down is due to non performing loans racking up notional interest that may only be payable on final recovery.

I shall do as Ton suggests, but also have a look at expressing this as a graph for greater clarity.

I note stuartassetzcapital response that he is unaware of anything fundamental (I'd wondered if this might be related to the belated payments issue that came up recently), but apparently not.

I'm in a similar position wrt loan #227 - four figure sum representing 30% of my GBBA1 total.  

registerme - I'm not actually sure what you're asking me?  If it's policy rather than technical then either stuartassetzcapital or the lender desk would be the people to ask.

With regards to the diversification algorithm that was released to the lender team earlier this week for final testing and approval so will hopefully be live within the next few days.  This will trend all lenders in a given investment account (excluding MLA and access accounts that already have a different balancing mechanism) towards having the same percentage of their portfolio invested in each loan as every other investor in that account.  Suspended loans are excluded from that rebalancing and there will still be some "lumpiness" due to the nature of the loan book, so holdings in some loans will be higher than others as that is reflective of the amount the account has invested in each loan as a whole.  But the worst cases should be in single rather than double digit percentages and the distribution will improve over time as more loans are added to the mix.

Should be going live today, and yes there will be a few days of elevated activity and trading whilst the system catches up with itself before that dies down.  There are various tolerances built into the algorithm to try and minimise trading, these will be fairly coarse to begin with and as we gain confidence that it's worked as expected and that subsequent market activity (e.g. new funds) don't cause too much rebalancing then we'll reduce those tolerances so the system works harder to maintain the established equilibrium.

We used to have stricter parameters but there were complaints that funds weren't being deployed so they were relaxed.  Now that the system properly rebalances through this new algorithm without needing idle funds it actually makes sense to allow new lenders with new funds to deploy their funds quickly to then have them diversified back across all loans.  Otherwise the system would deploy some funds, diversify bringing the totals in those loans down, then deploy some more funds, then diversify, and repeat with ever smaller amounts deployed.  

The system already looks at all loans available on the aftermarket when deploying funds and tries to estimate how much it can deploy into each, spreading the funds as widely as it can.  This is why some in the GBBA2 have reported great diversification but then subsequently deploying a larger amount leads to more heading into a few loans because availability at that time couldn't accommodate the larger amounts or there wasn't the same breadth of loans available.

Ultimately the system needs a wide number of loans into which funds can be deployed within the mandate of each account, something that improves over time and that this algorithm can take advantage of.