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Post by stuartassetzcapital on Apr 7, 2018 17:53:57 GMT
We have finally reached a place where instead of only a couple of dozen loans available for immediate investment in the Manual Lending Account (MLA) we now have 250+ as of today.
This has been a long term aim of ours, to deliver a wide range of MLA loans for immediate investment for new and existing investors. We will also be adding further functionality to the MLA in coming months to help make it quicker to find and invest in the loans you like. This wide range of loans is in turn created out of the huge success of the Access accounts which have given various benefits to both investors and borrowers alike and the vast diversification of the AAs is now rippling through to the MLA and indeed the other Investment Accounts.
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angrysaveruk
Member of DD Central
Say No To T.D.S
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Post by angrysaveruk on Apr 7, 2018 18:01:06 GMT
Great to see this. There have been a lot of interesting smaller loans lately I am having no problem investing at max exposure of 0.5% per loan
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Post by stuartassetzcapital on Apr 7, 2018 20:13:32 GMT
We have also actively grown our origination of smaller loans so the increase you have seen will likely go on growing further. It’s another strategic execution.
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cb25
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Post by cb25 on Apr 7, 2018 20:41:27 GMT
When attempting to buy into a loan with units available, it would match immediately. I get fed up with attempting to buy (say) £100 of a loan, only for it to take days and deliver nothing or vary little.
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Post by Ton ⓉⓞⓃ on Apr 8, 2018 10:40:02 GMT
When a loan draws down I, now, almost always get the £200-£10 that ask for even when the loan is fairly small, £100k or under.
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cb25
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Post by cb25 on Apr 8, 2018 10:49:58 GMT
When a loan draws down I, now, almost always get the £200-£10 that ask for even when the loan is fairly small, £100k or under. Shortage of lender money in AC ?
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Post by chris on Apr 8, 2018 11:55:38 GMT
When a loan draws down I, now, almost always get the £200-£10 that ask for even when the loan is fairly small, £100k or under. Shortage of lender money in AC ? More is being released on day 1 from the loans, we've just had a record few weeks of net lender deposits.
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cb25
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Post by cb25 on Apr 8, 2018 13:22:45 GMT
Shortage of lender money in AC ? More is being released on day 1 from the loans, we've just had a record few weeks of net lender deposits. That's good news. Perhaps my over-allocation to some loans will decrease in the packaged accounts.
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Post by slumberingaccountant on Apr 8, 2018 15:02:09 GMT
We have also actively grown our origination of smaller loans so the increase you have seen will likely go on growing further. It’s another strategic execution. Thats good news. For diversification the more loans the better. Im quite happy to buy into the smaller loans, for one thing its easier to understand the value of security at the level of say a single shop. I'm Just way of the rates- 6% on a couple of recent loans is too low for property development to compensate for the real risks of something going wrong.
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lobster
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Post by lobster on Apr 23, 2018 7:46:22 GMT
There is currently almost £33 million of availability on the SM, which I believe is an all-time high. Should this be viewed as a positive development with plenty of diversification available ? Or should it be viewed in terms of limited appetite by lenders for the available loans ?
In fairness there is now a whopping £105 million invested in the Instant Access and 30 Day accounts which is also an all-time high, which should surely be viewed favourably. Furthermore, if my understanding is correct, quite a lot of the current availability on the SM was a result of these two accounts increasing their cash reserves by attempting to reduce some of their holdings.
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sl75
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Post by sl75 on Apr 23, 2018 8:09:01 GMT
We have finally reached a place where instead of only a couple of dozen loans available for immediate investment in the Manual Lending Account (MLA) we now have 250+ as of today. I really haven't the patience to individually click through 250+ loans in order to set investment targets, even if I do drop my rate floor for this kind of investment to allow these to all be included... and similar seems likely to be a daunting prospect for new investors too. Are there any plans to introduce an "auto-target" facility where, for example, I might be able to say something like "invest up to £25 into all loans with a rate of at least 8%"... rather than being forced to either go into each of potentially hundreds of loans to manually set a buying target, or to write a script/macro to do that for me? I recall something similar being discussed a couple of years ago, but assume this was mothballed when you went down the route of pushing the GBBA etc. instead. Ideally this would be implemented in a manner so that I can have different auto targets for loans meeting different criteria, and at some stage later, if there are even more loans, and I need to diversify, I could lower the target to £20, and it would automatically lower the buying target on all loans that had not yet reach £20, and sell off the odd £5 on each loan that had already achieved the stated £25 investment. Even better if, when a partial repayment occurs, it automatically attempts to buy back the difference if anyone else is still selling... (but with a per loan override for those who prefer to let them amortise)
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Post by stuartassetzcapital on Apr 23, 2018 8:16:25 GMT
Hi
We have increased loan flow to levels people always wanted and that's a great move and permitted the investment accounts and access accounts to better diversify where possible - great and requested outcome. Also, whilst people want manual lending (when all around of scale are removing this option) we will continue to develop that account and support it with new features to make it quicker and easier to use. We have already made recent announcements on this and want our MLA to be the best one available in the market and for that you need choice.
If people don't want the loans then we will scale up institutional funding instead and indeed have just signed one for a modest part of our monthly flow and have others in progress. To prioritise retail is our consistent policy and its unchanged at present but it will depend on MLA investors actually wanting what they have said they want ! More loans, more depth in the aftermarket, more allocation to lenders at time of drawdown and decent rates. Having done the the first three already and having pushed through some interest rate rises on pipeline loans, again in answer to lender demand, we would like to think that our actions match lender appetite.
We really want to support the retail community and give it priority and this is part of that long term plan since we started 5 years ago.
I hope this helps.
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Post by stuartassetzcapital on Apr 23, 2018 8:20:07 GMT
We have finally reached a place where instead of only a couple of dozen loans available for immediate investment in the Manual Lending Account (MLA) we now have 250+ as of today. I really haven't the patience to individually click through 250+ loans in order to set investment targets, even if I do drop my rate floor for this kind of investment to allow these to all be included... and similar seems likely to be a daunting prospect for new investors too. Are there any plans to introduce an "auto-target" facility where, for example, I might be able to say something like "invest up to £25 into all loans with a rate of at least 8%"... rather than being forced to either go into each of potentially hundreds of loans to manually set a buying target, or to write a script/macro to do that for me? I recall something similar being discussed a couple of years ago, but assume this was mothballed when you went down the route of pushing the GBBA etc. instead. Ideally this would be implemented in a manner so that I can have different auto targets for loans meeting different criteria, and at some stage later, if there are even more loans, and I need to diversify, I could lower the target to £20, and it would automatically lower the buying target on all loans that had not yet reach £20, and sell off the odd £5 on each loan that had already achieved the stated £25 investment. Even better if, when a partial repayment occurs, it automatically attempts to buy back the difference if anyone else is still selling... (but with a per loan override for those who prefer to let them amortise) Yes some auto/quick invest functions in MLA are due extremely soon and chris will confirm when - we are talking working days to a few weeks at most from what I hear. This will indeed allow simple filtering and quick entry of how much to target per loan. More functions including bespoke auto investment mandates in MLA will follow a bit after. Those would effectively allow emulation of Investment Accounts like GBBA etc but with your own diversification limits, exposure limits, interest rate and LTV appetite etc etc. Your comment of keeping a £ level of exposure in a loan after amortisation/ partial redemption is also known and on the wish list.
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Post by Butch Cassidy on Apr 23, 2018 8:23:00 GMT
There is currently almost £33 million of availability on the SM, which I believe is an all-time high. Should this be viewed as a positive development with plenty of diversification available ? Or should it be viewed in terms of limited appetite by lenders for the available loans ? In fairness there is now a whopping £105 million invested in the Instant Access and 30 Day accounts which is also an all-time high, which should surely be viewed favourably. Furthermore, if my understanding is correct, quite a lot of the current availability on the SM was a result of these two accounts increasing their cash reserves by attempting to reduce some of their holdings. It's basic supply & demand, most MLIA investors are looking for "fair value" or better returns for the level of risk that they are taking with their money. AC now market themselves largely as a savings platform, via the various AC managed accounts (in other words savers give AC discretion to invest their money in whatever they want in return for a set return) so AC can underwrite £10's Million of loans that most MLIA investors don't see as offering attractive enough returns, hence loads are available on the SM & no amount of offering a diversity argument will make 5-7% rates look attractive to these genuine investors, as opposed to savers. Classic pricing for liquidity & not risk - this is not intended to be a criticism of the AC strategy but as a MLIA investor I no longer find hardly any loans offering sufficient rates for the risk I think they represent, so I have invested in AC equity, via Seedrs instead, as I see it as a much better medium/long term investment.
EDIT: Currently SM has just 10/200 loans with more than £200 available are with rates over 8%, Pipeline shows 3/64 with rates over 8%
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Mike
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Post by Mike on Apr 23, 2018 8:42:57 GMT
Sounds like this is mostly QAA loan parts sitting in a sale queue that could be removed any time. It's a bit like always putting 3% of QAA account up for withdrawal every day. You'll always be (mostly) at the front of any unexpected queue to sell. It makes perfect sense since AC know the rough churn of withdrawal and investment in each type of account but it does mean MLIA sales would take longer (usually about 30 days i wonder??)
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