Post by Jack Barlow on Aug 9, 2014 13:22:30 GMT
chris
I've noticed a quirk with the AC interest accrual calculation and am curious to know whether it is intentional or not.
Say a borrower is scheduled to pay its monthly interest payment on the 28th of the month (for the period up to midnight on 27th) but in a particular month it decides to make the payment early, say on the 26th of the month (e.g. because the payment date falls at a weekend). If AC then credit that payment to lenders accounts on the same day (26th), and the lender then also sells a unit of that loan on the same day, the seller will keep the interest paid up to midnight 27th and the buyer will not accrue any of the interest for the days 26th and 27th even though they owned the loan part on those days. This seems unfair on the buyer. Wouldn't it be fairer if AC always distributed the early interest to lenders on the day that's it due not the day it's received, so that lenders always received the interest they'd "earned"?
I've had this happen to me a number of times both as a seller and a buyer.
Jack
I've noticed a quirk with the AC interest accrual calculation and am curious to know whether it is intentional or not.
Say a borrower is scheduled to pay its monthly interest payment on the 28th of the month (for the period up to midnight on 27th) but in a particular month it decides to make the payment early, say on the 26th of the month (e.g. because the payment date falls at a weekend). If AC then credit that payment to lenders accounts on the same day (26th), and the lender then also sells a unit of that loan on the same day, the seller will keep the interest paid up to midnight 27th and the buyer will not accrue any of the interest for the days 26th and 27th even though they owned the loan part on those days. This seems unfair on the buyer. Wouldn't it be fairer if AC always distributed the early interest to lenders on the day that's it due not the day it's received, so that lenders always received the interest they'd "earned"?
I've had this happen to me a number of times both as a seller and a buyer.
Jack
