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MLIA
Mar 4, 2018 9:25:11 GMT
Post by elephantrosie on Mar 4, 2018 9:25:11 GMT
do i need to make sure that i have sufficient cash in the MLIA account before i give instructions to buy loans?
i have given instructions to buy loans, but without any cash in the account. i have only realised this after i have clicked to buy the loan. cannot get my head around this. how can this be correct?
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SteveT
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Post by SteveT on Mar 4, 2018 9:32:39 GMT
You can set up the instructions OK but, until you have cash in your MLIA account, the system won't be able to start acting on any of them.
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Post by chris on Mar 4, 2018 9:56:02 GMT
elephantrosie - the idea is that you can set up your instructions in advance and then send funds as you see fit. So you could set up a standing order or have instructions in place for when repayments occur, or have buy instructions ready for when sell instructions are executed, etc.
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stevio
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MLIA
Mar 6, 2018 7:08:31 GMT
via mobile
Post by stevio on Mar 6, 2018 7:08:31 GMT
Has anyone experienced defaults in the MLIA account at all? I realize it's possible, just wondered how common?
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SteveT
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MLIA
Mar 6, 2018 7:23:25 GMT
Post by SteveT on Mar 6, 2018 7:23:25 GMT
Has anyone experienced defaults in the MLIA account at all? I realize it's possible, just wondered how common? Easiest way to see them is to "Browse Loans" sorted in loan number sequence (old to new) and look at those with the blue "Trading Suspended" flag. They're all still included in the "Live Loans" list (ie. there's no separate list of past defaulted AC loans since recovery processes continue on them all).
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happy
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MLIA
Mar 6, 2018 7:34:14 GMT
Post by happy on Mar 6, 2018 7:34:14 GMT
Has anyone experienced defaults in the MLIA account at all? I realize it's possible, just wondered how common? Easiest way to see them is to "Browse Loans" sorted in loan number sequence (old to new) and look at those with the blue " Trading Suspended" flag. They're all still included in the "Live Loans" list (ie. there's no separate list of past defaulted AC loans since recovery processes continue on them all). To be fair not all loans with Trading Suspended are actually loans in default as there are many other reasons that loans are suspended such as traunche draw-down, lender vote being conducted, loan being repaid, etc. So you need to look at the activity tab on each loan page to see the details behind the suspension
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stevio
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MLIA
Mar 6, 2018 7:45:24 GMT
Post by stevio on Mar 6, 2018 7:45:24 GMT
Has anyone experienced defaults in the MLIA account at all? I realize it's possible, just wondered how common? Easiest way to see them is to "Browse Loans" sorted in loan number sequence (old to new) and look at those with the blue "Trading Suspended" flag. They're all still included in the "Live Loans" list (ie. there's no separate list of past defaulted AC loans since recovery processes continue on them all). Sorry, meant that question of the QAA (just getting used to the naming)? If your dipping in and out of the QAA, is there considered less risk to default? Has anyone experienced defaults in the QAA?
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SteveT
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MLIA
Mar 6, 2018 7:50:22 GMT
Post by SteveT on Mar 6, 2018 7:50:22 GMT
Easiest way to see them is to "Browse Loans" sorted in loan number sequence (old to new) and look at those with the blue " Trading Suspended" flag. They're all still included in the "Live Loans" list (ie. there's no separate list of past defaulted AC loans since recovery processes continue on them all). To be fair not all loans with Trading Suspended are actually loans in default as there are many other reasons that loans are suspended such as traunche draw-down, lender vote being conducted, loan being repaid, etc. So you need to look at the activity tab on each loan page to see the details behind the suspension That's why I suggested sorting from old to new. The first 11 are all defaults of one sort or another.
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ashtondav
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Post by ashtondav on Mar 6, 2018 9:18:40 GMT
Easiest way to see them is to "Browse Loans" sorted in loan number sequence (old to new) and look at those with the blue "Trading Suspended" flag. They're all still included in the "Live Loans" list (ie. there's no separate list of past defaulted AC loans since recovery processes continue on them all). Sorry, meant that question of the QAA (just getting used to the naming)? If your dipping in and out of the QAA, is there considered less risk to default? Has anyone experienced defaults in the QAA? Under normal conditions defaults in qaa are irrelevant as the PF is designed to pay out immediately. Since no one has ever not been able to withdraw funds from qaa, there have in effect never been any defaults not fully compensated by the PF. No guarantee for the future, mind.
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stevio
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MLIA
Mar 6, 2018 9:32:49 GMT
Post by stevio on Mar 6, 2018 9:32:49 GMT
Sorry, meant that question of the QAA (just getting used to the naming)? If your dipping in and out of the QAA, is there considered less risk to default? Has anyone experienced defaults in the QAA? Under normal conditions defaults in qaa are irrelevant as the PF is designed to pay out immediately. Since no one has ever not been able to withdraw funds from qaa, there have in effect never been any defaults not fully compensated by the PF. No guarantee for the future, mind. Thats interesting about the PF, I believe there is a separate PF for the QAA? Where does it detail information like this on their site?
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ashtondav
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Post by ashtondav on Mar 6, 2018 12:07:37 GMT
Under normal conditions defaults in qaa are irrelevant as the PF is designed to pay out immediately. Since no one has ever not been able to withdraw funds from qaa, there have in effect never been any defaults not fully compensated by the PF. No guarantee for the future, mind. Thats interesting about the PF, I believe there is a separate PF for the QAA? Where does it detail information like this on their site? As usual with AC there are some smoke and mirrors but this page gets as close to an explanation as their notorious compliance director permits... www.assetzcapital.co.uk/invest/our-accounts/quick-access-account/how-it-works
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stevio
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MLIA
Mar 6, 2018 12:22:59 GMT
Post by stevio on Mar 6, 2018 12:22:59 GMT
Thanks, yes, seems to be covered here below. The surplus interest from loans the QAA invests in is used to cover defaulted loan interest. What about the capital in default, would the the QAA PF allow you to withdraw your capital, even if you were in a defaulted loan? The Provision Fund that protects this account seeks to protect against any potential capital losses if, in the event of a loan default, the security taken on that loan does not cover the outstanding balance due on that loan. The Provision Fund is targeted to provide a coverage multiple of 3x the expected losses over the life of the loans within the account even in challenging economic conditions. The expected losses on the account (prior to any coverage by the Provision Fund) are calculated after applying extreme stress to the security taken to protect each loan and we have used the Bank of England 2016 Stress test assumptions to that security. The Bank of England Stress tests are designed to ensure UK Banks can withstand the worst expected future economic conditions and are a sound and prudent basis for this test. We then calculate a multiple of 3x those potential losses and that is the target for the Provision Fund funding. We also publish the current coverage ratio and that is also 3x as at 24/6/16. For more information on our default and loss performance data and more detail on our methods of analysis and risk management please see our Defaults and Losses statistics and explanation page.Differences in the coverage of payment delays or shortfalls within the Access Accounts
The Provision Funds for the Access Accounts (currently the Quick Access Account and the 30-Day Access Account) operate slightly differently when it comes to covering missed interest payments and these differences are highlighted here.
The Access Accounts pay a target, capped rate of interest on an equivalent monthly basis. The monthly payments to lenders flow from the loan interest from the loans held by lenders in the Access Account. Any interest received above the level required to service the monthly payments to lenders is allocated to the Access Account’s Provision Fund, as per the terms of the account.
If a loan is suspended and is not paying interest it will not, in isolation, prevent the full monthly payment from being made to lenders as there is normally a significant surplus of loan interest coming into the account: the same surplus which normally goes to fund the Provision Fund. In such a scenario, the amount of the surplus going to fund the Provision Fund would be reduced slightly (which incidentally has the same net effect as the full amount of the surplus going to the Provision Fund, then some of it being drawn back to pay the missing interest due to lenders).
The effect of this is that, while the Access Account continues to pay the capped rate of interest to lenders then it is, in practical terms, covering any missing interest due from suspended loans held within the QAA.
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MLIA
Mar 6, 2018 14:53:15 GMT
Post by Ton ⓉⓞⓃ on Mar 6, 2018 14:53:15 GMT
Easiest way to see them is to "Browse Loans" sorted in loan number sequence (old to new) and look at those with the blue "Trading Suspended" flag. They're all still included in the "Live Loans" list (ie. there's no separate list of past defaulted AC loans since recovery processes continue on them all). Sorry, meant that question of the QAA (just getting used to the naming)? If your dipping in and out of the QAA, is there considered less risk to default? Has anyone experienced defaults in the QAA? My understanding is slightly different to what others have said in this thread, or they're giving a quick & simple over view. For the QAA and the 30DAA in normal/most circumstances you don't get affected by loans being Suspended you're able to withdraw your money even if it is in a Suspended loan. For example I've just opened an IFISA and £xk went into the QAA. And I can see that I how units in a loan that was Suspended a month before I opened it (loan#440). My understanding is that everyone holds an equal holding of the loans that make up the QAA & 30DAA assuming you bought into all the same ones. I think of it as buying units in the QAA not really the underlying loans. Now you're talking about Defaults but what do you mean by defaults? AC & most platforms have a different way of using the same words, so it's really confusing sometimes, and it's best to get those definitions right for each platform. Loans on AC get Suspended for Default and for other reasons such as Drawdown. Now my understanding is if you bought into a loan using the QAA or 30DAA while it was suspended you will be able to sell out of it also. But this system applies just to the QAA & 30DAA not the MLIA & other a/c's. As I think about this I realize I don't have a perfect understanding of this so... Please correct me where I'm wrong.
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Post by chris on Mar 6, 2018 15:53:39 GMT
Ton ⓉⓞⓃ - in effect with every deposit, withdrawal, investment, or sale, the QAA exchanges loan units between investors in that account to keep everyone perfectly balanced, which includes buying and selling loan units in suspended loans. The reason this specific account (and the 30DAA) are able to trade loan units even when the market is suspended is because the provision funds have made their discretionary decision to cover any expected loss and ring fenced those funds. Interest payments are topped up from payments made by other loans to ensure the full interest due is paid each month, and if there's any shortfall in interest or a capital loss then a physical payment from the provision fund will be made to cover that shortfall. Where there is a loss that the provision fund cannot cover, or elects not to using the discretionary decision, then all lenders to the access accounts will have those funds locked in and will not be able to fully withdraw from the account. That is not expected to happen in normal operation of the account but remains a technical possibility. Those accounts are optimised around liquidity and this is reflected in their implementation and expected operation. Other accounts have different goals and are thus implemented slightly differently.
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angrysaveruk
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Say No To T.D.S
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MLIA
Mar 6, 2018 18:44:31 GMT
Post by angrysaveruk on Mar 6, 2018 18:44:31 GMT
Does the spread of the interest between the 30 day and quick access accounts and the underlying loans go into the provision fund?
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