Trading in Suspended Loans - With Discounts

Would be great feature for people who want liquidity, people who want to analyse suspended loans and take an educated investment on the likely outcome, and people like me who just like seat of the pants gambling but cant be bothered to do a lot of research   

In terms of the 'rigid' policy for suspensions etc you will be pleased to know this has been reviewed this week again, and to a degree earlier, and is very, very clear internally. It will mean consistency in suspensions, for the right reasons where investors need to be protected from 'events' we are aware of and we are reviewing the potential to open discounted loan trading to those investors who are happy to sign disclaimers on those trades. 

As can be seen from the loan book and the forthcoming 'default' stats we are taking a very clear line on loan credit events and potential consequent defaults and it is possible this is seen in the early days as a wobble on our default rates and numbers of suspended loans but we expect this will come to be seen for what it is - staying ahead of issues arising, flagging issues and suspending loans as soon as possible/necessary (internally and externally), calling defaults robustly and when required and to a standard policy consistent with and used by banking organisations. Loan suspensions mean that you know that we are all over that loan and reviewing strategies to get it repaid as best we can achieve, or at least to seek to achieve a restructure, where sensible, under lender voting. Lending is not a fire and forget business and not without risk and we therefore continue to grow our loan servicing/monitoring and recoveries teams to provide a great service for investors. 

There is much talk on the wider forum about platforms not having a reliable and trusted approach to default flagging and management/ work out and we do not want to have that talk about us. We trust that our property security on most past loans and all future loans will deliver the net results that we have become known for and will continue to endeavour to deliver these. 

If indeed going forward suspension policy "is very, very clear internally. It will mean consistency in suspensions, for the right reasons where investors need to be protected from 'events' we are aware of" that will be most welcome but having been with AC for nearly 4 1/2 years I have been told this before, on at least a couple of occasions & although the following few months do indeed conform to the vision set out for lenders, the previously bad habits & inconsistency have returned at a later date. Then after complaints & top level management intervention things are again returned to the promised vision only to slip backwards as more new employees take matters into their own hands to "protect investors (from themselves)."

I trust that your intentions are well meaning & hopefully will be monitored for compliance into the future & the sooner most loans are returned to trading again the better but you will understand that I will reserve judgement to see the fruits of your actions rather than just these soothing words.

So long as the tax implications work out, this sounds good I would buy if discounts were accurate (I doubt they will be)

Having considered it further it does kind of feel like we are possibly being softened up for a large increase in suspensions and speed of suspensions (and removing PF cover) i.e. dont worry they are now trade'able if you dont like it sell it. 

I might use this discounting feature, for buys and/or sells. Ahead of that, I'd prefer AC stop borrowers dictating the Voting options when loans go into default and do it themselves (so we don't get any more 'would you like to lend us money interest-free for 6 months ?')