michaelc
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Post by michaelc on Apr 13, 2018 15:32:26 GMT
Hello All
I have an investment in the original GBBA. Tow or three loans take up a hugely disproportionate amount of the portfolio there. Is there a way to try to reduce holding in any of those loans? e.g. If I sell half my stake there, is there a good chance my big loans will go or be reduced?
As an aside, if I was to attempt to sell all in a GBBA2, waited a few days and then re-invested all the cash back into the GBBA2 would I expect to see the same investments? Would I lose anything by doing it? I'm guessing I wouldn't gain much either?
Thanks in advance to anyone who is able to comment.
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cb25
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Post by cb25 on Apr 13, 2018 16:59:06 GMT
Hello All I have an investment in the original GBBA. Tow or three loans take up a hugely disproportionate amount of the portfolio there. Is there a way to try to reduce holding in any of those loans? e.g. If I sell half my stake there, is there a good chance my big loans will go or be reduced? Up to a couple of weeks ago, I had around £17K in GBBA1 with £5,500 in suspended loan 227 and around £2K in each of two other loans. As I'm still waiting to see how well AC cope with 227 (doing nothing useful so far imo), I wasn't happy with the 2 x £2K in case either/both of those loans went belly up. So, I put in a Sell for the whole of GBBA1, but kept monitoring it while it was in progress. I stopped the withdrawal when the 2nd highest loan had £700 in it (still have £5500 in 227). End result: now have just less than £10K in GBBA1, of which £5500 is in loan 227. On the upside, my maximum exposure (other than 227) is £700. On the downside, I've lost the nominal 7% on around £7K of loans. I spread the £7K between MLA and PSA/30-day/GBBA2. (With GBBA2 and PSA, I've drip fed money in, stopping when the highest loan amount hit £300 - an arbitrary target I've set for now). I've no comment on your GBBA2 question.
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Post by chris on Apr 13, 2018 20:50:43 GMT
Hello All I have an investment in the original GBBA. Tow or three loans take up a hugely disproportionate amount of the portfolio there. Is there a way to try to reduce holding in any of those loans? e.g. If I sell half my stake there, is there a good chance my big loans will go or be reduced? As an aside, if I was to attempt to sell all in a GBBA2, waited a few days and then re-invested all the cash back into the GBBA2 would I expect to see the same investments? Would I lose anything by doing it? I'm guessing I wouldn't gain much either? Thanks in advance to anyone who is able to comment. In the GBBA 1 those loans will be suspended from trading on the aftermarket so the diversification system cannot rebalance your holdings. You wouldn't be able to sell out of them either whilst they're in that state. With the GBBA 2 if you sell out your holding and then buy back in a few days later, after a day or two you'd end up with roughly the same holding as you would have had were you to have left it there. Unless you have a relatively small holding (less than a couple of hundred pounds) or you have investments in suspended loans then there's a rebalancing algorithm that works behind the scenes to constantly tries to exchange loan units and move you towards the average holdings within the account, within a margin of tolerance. So as you're deploying new funds the system will buy into whatever loans are available on the aftermarket, but then those holdings are rebalanced to be broadly the same proportionally as everyone else's holdings in the account.
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michaelc
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Say No To T.D.S.
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Post by michaelc on Apr 13, 2018 22:09:35 GMT
Hello All I have an investment in the original GBBA. Tow or three loans take up a hugely disproportionate amount of the portfolio there. Is there a way to try to reduce holding in any of those loans? e.g. If I sell half my stake there, is there a good chance my big loans will go or be reduced? As an aside, if I was to attempt to sell all in a GBBA2, waited a few days and then re-invested all the cash back into the GBBA2 would I expect to see the same investments? Would I lose anything by doing it? I'm guessing I wouldn't gain much either? Thanks in advance to anyone who is able to comment. In the GBBA 1 those loans will be suspended from trading on the aftermarket so the diversification system cannot rebalance your holdings. You wouldn't be able to sell out of them either whilst they're in that state. With the GBBA 2 if you sell out your holding and then buy back in a few days later, after a day or two you'd end up with roughly the same holding as you would have had were you to have left it there. Unless you have a relatively small holding (less than a couple of hundred pounds) or you have investments in suspended loans then there's a rebalancing algorithm that works behind the scenes to constantly tries to exchange loan units and move you towards the average holdings within the account, within a margin of tolerance. So as you're deploying new funds the system will buy into whatever loans are available on the aftermarket, but then those holdings are rebalanced to be broadly the same proportionally as everyone else's holdings in the account. Hi. Many thanks for your answer about the GBBA 2. Re GBBA1, the loans that take up a disproportionate amount of my portfolio are not suspended (as far as I know unless you know something about those loans that isn't public yet!).
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Post by chris on Apr 14, 2018 5:23:43 GMT
In the GBBA 1 those loans will be suspended from trading on the aftermarket so the diversification system cannot rebalance your holdings. You wouldn't be able to sell out of them either whilst they're in that state. With the GBBA 2 if you sell out your holding and then buy back in a few days later, after a day or two you'd end up with roughly the same holding as you would have had were you to have left it there. Unless you have a relatively small holding (less than a couple of hundred pounds) or you have investments in suspended loans then there's a rebalancing algorithm that works behind the scenes to constantly tries to exchange loan units and move you towards the average holdings within the account, within a margin of tolerance. So as you're deploying new funds the system will buy into whatever loans are available on the aftermarket, but then those holdings are rebalanced to be broadly the same proportionally as everyone else's holdings in the account. Hi. Many thanks for your answer about the GBBA 2. Re GBBA1, the loans that take up a disproportionate amount of my portfolio are not suspended (as far as I know unless you know something about those loans that isn't public yet!). Outside of the suspended loans, like #227, the GBBA 1 has two loans where the average holdings for all lenders is 13% (#495 and #544). The other loans are 5% or less, and #544 should be repaid in the next few days. PSA has three loans with average holdings over 5% with the highest being 6.9%. GBBA 2 has one loan at 8.5% (#441) with the next largest being 3.8%. All investors will be trending towards similar holdings.
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cb25
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Post by cb25 on Apr 14, 2018 8:33:24 GMT
Hi. Many thanks for your answer about the GBBA 2. Re GBBA1, the loans that take up a disproportionate amount of my portfolio are not suspended (as far as I know unless you know something about those loans that isn't public yet!). Outside of the suspended loans, like #227, the GBBA 1 has two loans where the average holdings for all lenders is 13% (#495 and #544). The other loans are 5% or less, and #544 should be repaid in the next few days. My GBBA1 - which I've run down quite a bit myself to reduce what I perceive as over-allocation risk - has #227 @ 56.35% (OK, that's suspended) #336 @ 7.19% (edit: originally posted incorrectly as #356) #544 @ 4.39% My #544 doesn't seem to match your comment, though I'm more than happy with the undershoot !
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Post by chris on Apr 14, 2018 8:57:39 GMT
Outside of the suspended loans, like #227, the GBBA 1 has two loans where the average holdings for all lenders is 13% (#495 and #544). The other loans are 5% or less, and #544 should be repaid in the next few days. My GBBA1 - which I've run down quite a bit myself to reduce what I perceive as over-allocation risk - has #227 @ 56.35% (OK, that's suspended) #356 @ 7.19% #544 @ 4.39% My #544 doesn't seem to match your comment, though I'm more than happy with the undershoot ! There's some variance, particularly when lenders are selling out or holdings are at the smaller end of the spectrum. There's also a tolerance to keep the number of trades manageable. So consider it a guideline / trend rather than a hard and fast rule.
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cb25
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Post by cb25 on Apr 14, 2018 9:07:07 GMT
My GBBA1 - which I've run down quite a bit myself to reduce what I perceive as over-allocation risk - has #227 @ 56.35% (OK, that's suspended) #356 @ 7.19% #544 @ 4.39% My #544 doesn't seem to match your comment, though I'm more than happy with the undershoot ! There's some variance, particularly when lenders are selling out or holdings are at the smaller end of the spectrum. There's also a tolerance to keep the number of trades manageable. So consider it a guideline / trend rather than a hard and fast rule. Apologies - mistake in what I wrote earlier - it's #336 (rather than #356) that is at 7.19%. For info, #544 has £428 in it, dunno if that counts as 'at the smaller end of the spectrum'. Doesn't matter to me, I'm happy with the percentage.
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agent69
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Post by agent69 on Apr 14, 2018 9:19:12 GMT
I sold out of GBBA1 (without too much grief) due to diversification issue, and tried feeding money into GBBA 2 (about £700 as a trial). Things looked to be going ok so last week I made a lump sum payment of £500 to see what would happen. Initially it went as 4 x £100 loans and a load of shrapnel, but after a week of beavering away the diversification algo has me down to one at £59 and everything else in the account sub £40.
Not quite the 0.5% diversification on FC, but a big improvement on GBBA1.
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cb25
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Post by cb25 on Apr 14, 2018 9:34:45 GMT
I sold out of GBBA1 (without too much grief) due to diversification issue, and tried feeding money into GBBA 2 (about £700 as a trial). Things looked to be going ok so last week I made a lump sum payment of £500 to see what would happen. Initially it went as 4 x £100 loans and a load of shrapnel, but after a week of beavering away the diversification algo has me down to one at £59 and everything else in the account sub £40. Not quite the 0.5% diversification on FC, but a big improvement on GBBA1. Top 5 loans by percentage in my GBBA2 are: #441 @ 4.95% #550 @ 4.06% #463 @ 3.49% #464 @ 2.98% #497 @ 2.91% As you say, doesn't compare with FC (or Zopa, even better on staged input), but way better than GBBA1 (where #227 had 20%+ even before it got suspended and I started running the account down)
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Post by Deleted on Apr 15, 2018 11:33:05 GMT
Hi. Many thanks for your answer about the GBBA 2. Re GBBA1, the loans that take up a disproportionate amount of my portfolio are not suspended (as far as I know unless you know something about those loans that isn't public yet!). Outside of the suspended loans, like #227, the GBBA 1 has two loans where the average holdings for all lenders is 13% (#495 and #544). The other loans are 5% or less, and #544 should be repaid in the next few days. PSA has three loans with average holdings over 5% with the highest being 6.9%. GBBA 2 has one loan at 8.5% (#441) with the next largest being 3.8%. All investors will be trending towards similar holdings. My GBBA2 holdings are currently showing #441 as a whopping and unacceptable 33% of total, the next highest being a much more reasonable 4%. Can you assure me this is going to continue to be traded downwards towards the 8.5% quoted?
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Post by chris on Apr 15, 2018 13:30:13 GMT
Outside of the suspended loans, like #227, the GBBA 1 has two loans where the average holdings for all lenders is 13% (#495 and #544). The other loans are 5% or less, and #544 should be repaid in the next few days. PSA has three loans with average holdings over 5% with the highest being 6.9%. GBBA 2 has one loan at 8.5% (#441) with the next largest being 3.8%. All investors will be trending towards similar holdings. My GBBA2 holdings are currently showing #441 as a whopping and unacceptable 33% of total, the next highest being a much more reasonable 4%. Can you assure me this is going to continue to be traded downwards towards the 8.5% quoted? It depends on your total holdings and if you're currently selling out of the account or not, and also on others in the account looking to increase their holdings in that loan. If you have a few hundred pounds invested then the system will continue to trade as it can to rebalance your holdings.
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Post by Deleted on Apr 17, 2018 9:26:28 GMT
My GBBA2 holdings are currently showing #441 as a whopping and unacceptable 33% of total, the next highest being a much more reasonable 4%. Can you assure me this is going to continue to be traded downwards towards the 8.5% quoted? It depends on your total holdings and if you're currently selling out of the account or not, and also on others in the account looking to increase their holdings in that loan. If you have a few hundred pounds invested then the system will continue to trade as it can to rebalance your holdings. Hi chris, I only have a test £500 in GBBA2 but I understand this is enough for the algorithm to take action. I also only recently deposited and am aware the buying takes no account of diversification and this happens subsequently. However I am not selling down and have seen no trades in #441 for a few days which I had hoped would be happening regularly given the huge 33% holding I currently have dwarfing the rest at 4% and less. If this doesnt start trending towards the average 8% soon I will withdraw again as this level of exposure to one loan just isn't acceptable. Do I understand right that it should still do this?
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cb25
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Post by cb25 on Apr 17, 2018 9:31:41 GMT
It depends on your total holdings and if you're currently selling out of the account or not, and also on others in the account looking to increase their holdings in that loan. If you have a few hundred pounds invested then the system will continue to trade as it can to rebalance your holdings. #441 .... given the huge 33% holding I currently have dwarfing the rest at 4% and less. If this doesnt start trending towards the average 8% soon ... fyi I have a mid 4-figure sum in GBBA2 and my #441 is at 5.06%. Edit: and it's the largest holding by percentage.
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Post by Deleted on Apr 17, 2018 19:17:21 GMT
#441 .... given the huge 33% holding I currently have dwarfing the rest at 4% and less. If this doesnt start trending towards the average 8% soon ... fyi I have a mid 4-figure sum in GBBA2 and my #441 is at 5.06%. Edit: and it's the largest holding by percentage. Can I interest you in a swap for some more? Still unmoved on 33%! Ludicrous.
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