crapo
Posts: 40 
Likes: 26
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Post by crapo on May 8, 2018 16:28:39 GMT
Can't say I'm surprised... Will the GBBA be next? (edit: of course GBBA1 was closed, and GBBA2 opened...which I didn't invest in, hence I forgot about it)
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Post by df on May 8, 2018 16:34:05 GMT
Can't say I'm surprised... Will the GBBA be next? This was inevitable and should have been done long time ago (IMO).
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markdirac
Member of DD Central
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Post by markdirac on May 8, 2018 16:58:35 GMT
This was inevitable and should have been done long time ago (IMO). Why? Just because there is no flow of new loans, why should the account be closed? Others may want to buy in to whatever share of GEIA others are wanting to sell out of. Closing the account means that I cannot cash in any proportion of this account even if others want to buy in to it. My investment has become illiquid for 5 years.
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jlend
Member of DD Central
Posts: 1,840
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Post by jlend on May 8, 2018 17:28:20 GMT
I wonder if the number of recent wind turbine defaults also had any impact on the decision
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loadsahope
Member of DD Central
Posts: 84
Likes: 45
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Post by loadsahope on May 8, 2018 18:02:22 GMT
This was inevitable and should have been done long time ago (IMO). Why? Just because there is no flow of new loans, why should the account be closed? Others may want to buy in to whatever share of GEIA others are wanting to sell out of. Closing the account means that I cannot cash in any proportion of this account even if others want to buy in to it. My investment has become illiquid for 5 years. I don't think so. The underlying loans are held in other accounts too.
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Post by df on May 8, 2018 19:55:16 GMT
This was inevitable and should have been done long time ago (IMO). Why? Just because there is no flow of new loans, why should the account be closed? Others may want to buy in to whatever share of GEIA others are wanting to sell out of. Closing the account means that I cannot cash in any proportion of this account even if others want to buy in to it. My investment has become illiquid for 5 years. It was obvious long time ago that the flow of loans qualified for this account is going to stop. Account cannot sustain without new loans. All wind turbine loans are available in manual account and you will be in them if you use QAA or 30-Day. I might be wrong, but in my understanding if you instruct to withdraw your funds from GEA some of your loan parts will be put on SM and may be distributed across QAA/30Day. But some of them will remain to be locked until the recovery process is completed. 50% of my GEA funds are non-performing, so my current return rate is 3.5%, which is lower than QAA. Investing in GBBA and GEA was one of my biggest p2p mistake
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Post by GSV3MIaC on May 9, 2018 6:24:11 GMT
As others have said, 'closed' means you can't BUY, you can still SELL.
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happy
Member of DD Central
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Post by happy on May 9, 2018 7:14:08 GMT
As others have said, 'closed' means you can't BUY, you can still SELL. I thought you can still BUY into any available qualifying loans with any funds held in the GEA, i.e. interest and capital repayments retained within the GEA, but you can't add new funds to the GEA account.
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m2btj
Member of DD Central
Posts: 631
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Post by m2btj on May 9, 2018 7:21:41 GMT
The sector was too reliant on subsidies & I steered clear of it.
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puddleduck
Member of DD Central
Posts: 537
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Post by puddleduck on May 9, 2018 8:17:05 GMT
The sector was too reliant on subsidies & I steered clear of it. The wind turbine subsidy market was a complete racket. I got very involved in opposing a wind turbine planning application here locally - it was an application to install a single turbine on a farm. The installation made absolutely no economic sense whatsoever, it's power output was projected to be just about enough to power 3 to 5 houses in total if I recall correctly, yet the cost to install, and the environmental destruction involved in the installation was pretty mind blowing. The application was made purely with greed in mind to pocket the subsidies. We were lucky that at the time the govt. said that local communities would have much more say in this sort of thing, rather than just being rubber stamped, so a few like minded souls in my village managed to kill off the plans. I was never in GEA (for obviously reasons, it would have been sheer hypocrisy), but were the generation figures vs. subsidy figures presented in the loan docs? As I've never seen a turbine proposal that made sense when you look at the output figures vs. installation costs once subsidies were taken out.
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Brainer
Member of DD Central
Posts: 186
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Post by Brainer on May 11, 2018 18:34:48 GMT
Thinking out loud here... does the closure of the GEA mean capital losses for those in the I*I loans becomes quite/more likely, even with the PF?
The PF is partially funded by the difference in interest rate between what the borrower pays and what GEA holders receive. No further loans coming into the GEA means as loans finish this income stream to the PF will gradually diminish.
The expected loss AC have used (from BOE 2016 stress test) is only 0.08%, with PF coverage 3x that.
With the I*I loans all going quite badly awry and given they're some of the largest in the GEA, you can probably assume that the 0.08% is going to be significant underestimate, and with the account now closing there won't be time to move back towards that estimate.
Is it possible to see how much is in the GEA? And how much of each loan is GEA vs MLA? Knowing that you can probably get a rough idea what is in the PF, and whether the expected losses from the I*I loans will be covered or not.
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benaj
Member of DD Central
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Post by benaj on May 12, 2018 9:19:32 GMT
At the moment, the new algorithm keeps selling loans within GEA for “diversification” reason. So i now have moved money to other standard AC accounts.
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Post by jevans4949 on May 12, 2018 14:49:06 GMT
If people keep selling the "good" stuff out of GEA or GBBA1, then only the "bad" ones will be left. However, although the proportion of bad ones will grow, their absolute value will remain the same, so the impact on the Provision Fund(s) will be the same.
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