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Post by chris on May 23, 2018 10:32:13 GMT
sapphire - anything like that where it isn't a technical question could I kindly directly you to the lender desk please. There will be, or will need to be, official answers to these questions that are given out consistently and with sign off from our compliance team.
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dandy
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Post by dandy on May 23, 2018 10:48:51 GMT
sapphire - anything like that where it isn't a technical question could I kindly directly you to the lender desk please. There will be, or will need to be, official answers to these questions that are given out consistently and with sign off from our compliance team. Never knew the PF figures were shown on your site, maybe it is recent. So there is £2m PF covering the access accounts. The largest loan exposure is ~ £7m. What would happen if that loan defaulted/credit event? Would we still be able to withdraw all?
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happy
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Post by happy on May 23, 2018 14:24:42 GMT
sapphire - anything like that where it isn't a technical question could I kindly directly you to the lender desk please. There will be, or will need to be, official answers to these questions that are given out consistently and with sign off from our compliance team. Never knew the PF figures were shown on your site, maybe it is recent. So there is £2m PF covering the access accounts. The largest loan exposure is ~ £7m. What would happen if that loan defaulted/credit event? Would we still be able to withdraw all? The ability to withdraw instantly for the QAA or in 30 days for the 30 Day account is based on the cash buffer held as part of these accounts. It has nothing to do with the Provision Fund. The PF will only be used in the event of a defaulting loan not recovering 100% of the capital value of the loan from the secured assets. If the access accounts cash buffer was ever exhausted then withdrawal of funds depends on the ability to sell loan holdings to release the funds required. Hope this helps.
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dandy
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Post by dandy on May 23, 2018 14:33:51 GMT
Never knew the PF figures were shown on your site, maybe it is recent. So there is £2m PF covering the access accounts. The largest loan exposure is ~ £7m. What would happen if that loan defaulted/credit event? Would we still be able to withdraw all? The ability to withdraw instantly for the QAA or in 30 days for the 30 Day account is based on the cash buffer held as part of these accounts. It has nothing to do with the Provision Fund. The PF will only be used in the event of a defaulting loan not recovering 100% of the capital value of the loan from the secured assets. If the access accounts cash buffer was ever exhausted then withdrawal of funds depends on the ability to sell loan holdings to release the funds required. Hope this helps. Wrong. Cash buffer concerns liquidity only. PF is to enable us to trade defaulted loans. My question is related to defaulted loans. Nothing to do with cash buffer (other than the fact cash buffer also needs to be intact to withdraw). So my question stands but I am not expecting an answer. I guess it is what some would call a rhetorical question.
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happy
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Post by happy on May 23, 2018 15:19:35 GMT
The ability to withdraw instantly for the QAA or in 30 days for the 30 Day account is based on the cash buffer held as part of these accounts. It has nothing to do with the Provision Fund. The PF will only be used in the event of a defaulting loan not recovering 100% of the capital value of the loan from the secured assets. If the access accounts cash buffer was ever exhausted then withdrawal of funds depends on the ability to sell loan holdings to release the funds required. Hope this helps. Wrong. Cash buffer concerns liquidity only. PF is to enable us to trade defaulted loans. My question is related to defaulted loans. Nothing to do with cash buffer (other than the fact cash buffer also needs to be intact to withdraw). So my question stands but I am not expecting an answer. I guess it is what some would call a rhetorical question. No I'm not wrong and thank you for your polite reply. When you withdraw from the QAA you take money from the cash buffer, theoretically instantly. If the cash buffer is empty the QAA sells loans, if it can, on your behalf to provide you with funds. If there are only defaulted loans left in the QAA then you will have to wait until recovery competed and assets are sold and only then will the PF be involved and then only if there is a capital loss. So in all but the most extreme of situation the PF has nothing to do with with selling out of the access accounts, if you sold everything today you would get all your money back instantly (or in 30 Days) regardless of any defaulted loans you hold and without any recourse to the PF. Edit: crossed with paul123 and also the PF has nothing to do with trading loans it is there to cover capital loss after recovery of assets.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 23, 2018 16:09:23 GMT
Perhaps we could refer to the horse's mouth post on p1 p2pindependentforum.com/post/259971/thread which seems to make clear reference to the PF as a key component in the trading of defaulted loans ie selling to withdraw. I suspect both the PF & the cash element form important components in allowing full exit. |
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ashtondav
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Post by ashtondav on May 23, 2018 17:29:54 GMT
But it begs the question, why all these questions? Why oh why is it not clear. Crystal bl**dy clear, because it should be - and it isn’t.
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Post by bikeman on May 23, 2018 17:56:38 GMT
But it begs the question, why all these questions? Why oh why is it not clear. Crystal bl**dy clear, because it should be - and it isn’t. And that's exactly why AC will be getting no more from me.
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dandy
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Post by dandy on May 24, 2018 9:31:24 GMT
No I'm not wrong and thank you for your polite reply. When you withdraw from the QAA you take money from the cash buffer, theoretically instantly. If the cash buffer is empty the QAA sells loans, if it can, on your behalf to provide you with funds. If there are only defaulted loans left in the QAA then you will have to wait until recovery competed and assets are sold and only then will the PF be involved and then only if there is a capital loss. So in all but the most extreme of situation the PF has nothing to do with with selling out of the access accounts, if you sold everything today you would get all your money back instantly (or in 30 Days) regardless of any defaulted loans you hold and without any recourse to the PF. Edit: crossed with paul123 and also the PF has nothing to do with trading loans it is there to cover capital loss after recovery of assets. But you are wrong as clearly stated ITT and as a relentless AC cheerleader (employee/shareholder??) it is annoying that you continually post information that is wrong. either you dont know (so stay silent) or you do and are trolling. and .... liking posts that totally contradict what you say is incredibly strange behaviour. just saying
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Post by chris on May 24, 2018 10:23:08 GMT
As far as I know happy isn't affiliated with AC, perhaps as a Seedrs shareholder. The only employees that currently post on this forum are myself and stuartassetzcapital. Liquidity of the QAA is linked to both the cash balance being sufficient to cover the value being withdrawn, and the PF having ring fenced funds to cover the expected losses of loans held by lenders in the QAA and 30DAA. If a loan's expected loss isn't ring fenced within the PF then that loan will cease to be tradable by the QAA and will be shown as illiquid funds on the dashboard for affected lenders, limiting the total amount that could be withdrawn to the other loan holdings plus cash balance. Lender's holdings in that loan would be frozen until either that loan became tradable again or the PF had sufficient funds to ring fence against the expected loss. Likewise if the QAA cash balance hits zero then no withdrawals will be possible until loan units are sold down on the market to replenish that cash balance. |
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Post by stuartassetzcapital on May 24, 2018 10:38:47 GMT
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jlend
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Post by jlend on May 24, 2018 11:04:29 GMT
stuartassetzcapitalDo you think it was clear to AC staff and lenders before these faqs were gradually added since February? Any progress on providing some example scenarios of how things work? I understand these have been created and are in the process of being signed off before being published? Thanks
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