jlend
Member of DD Central
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Post by jlend on May 16, 2018 14:14:56 GMT
hmmmmmm...... to my mind higher rate = higher risk. Higher risk = higher defaults/losses. Can we really expect higher returns in the long term? hmmmmmm...... It's a temporary marketing promotion... Do we know how long the temporary promotion will go on for?
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dave2
Member of DD Central
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Post by dave2 on May 16, 2018 14:15:52 GMT
It's a temporary marketing promotion... How temporary?
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michaelc
Member of DD Central
Say No To T.D.S.
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Post by michaelc on May 16, 2018 14:28:47 GMT
Regardless of whether good, bad or indifferent (I don't know enough to claim which), I do feel long standing members and moderators might do better than simple say "Great Stuff..." or worse "Thank you AC". They've made a business decision for business reasons presumably around increasing net inflow. So far I have had good experiences with AC but it isn't a matey type of relationship and it certainly isn't based on them doing me favours that I can thank them for. I like to think they do what they do so that we both benefit - a win win if you like.
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cb25
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Post by cb25 on May 16, 2018 14:54:41 GMT
hmmmmmm...... to my mind higher rate = higher risk. Higher risk = higher defaults/losses. Can we really expect higher returns in the long term? hmmmmmm...... It's a temporary marketing promotion... Will you be giving us a minimum 30 days notice of any reduction in the 30-day rate ? (I don't want to put money in then find the rate drops in say 10 days time) edit: I just asked how much notice we'd be given of a rate drop via AC live-chat, chatted to J. They didn't have an answer, would ask their manager and email me the result. I asked if Chris (or a.n.other) could post it on this forum so everybody got the answer. (I should have said 'pls put it in the account description' but didn't)
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happy
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Post by happy on May 16, 2018 15:36:22 GMT
or is this money tending to head off-platform? The report I just quickly checked only goes back 20 weeks, but not one of those 20 weeks has seen a net withdrawal from the platform. Deposits have exceeded withdrawals in each of those weeks, with only one of those weeks being less than a 7 figure net inflow and even that was over £900k. Our lender base is growing at a very healthy rate but so is our borrower origination so we need to make sure we keep the two balanced and this promotion is part of that strategy. Indeed it seems they have and a lot has headed into the QAA/30 Day, only a few weeks or so ago I congratulated AC for hitting £100m in their Access accounts, when I last looked a few days ago it was hovering around £110m Some growth!
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Post by chris on May 16, 2018 16:07:18 GMT
It's a temporary marketing promotion... Will you be giving us a minimum 30 days notice of any reduction in the 30-day rate ? (I don't want to put money in then find the rate drops in say 10 days time) edit: I just asked how much notice we'd be given of a rate drop via AC live-chat, chatted to J. They didn't have an answer, would ask their manager and email me the result. I asked if Chris (or a.n.other) could post it on this forum so everybody got the answer. (I should have said 'pls put it in the account description' but didn't) I believe that's the intention but best wait for customer service to get back to you to confirm for sure.
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Post by chris on May 16, 2018 16:10:28 GMT
The report I just quickly checked only goes back 20 weeks, but not one of those 20 weeks has seen a net withdrawal from the platform. Deposits have exceeded withdrawals in each of those weeks, with only one of those weeks being less than a 7 figure net inflow and even that was over £900k. Our lender base is growing at a very healthy rate but so is our borrower origination so we need to make sure we keep the two balanced and this promotion is part of that strategy. Indeed it seems they have and a lot has headed into the QAA/30 Day, only a few weeks or so ago I congratulated AC for hitting £100m in their Access accounts, when I last looked a few days ago it was hovering around £110. Some growth! It was over £117m when I last looked (there's a couple of historic promotional accounts that won't appear in the totals you see on the site due to the way they're segregated and only shown to qualifying lenders).
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copacetic
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Post by copacetic on May 16, 2018 16:53:31 GMT
Good news for investors, rate bumps are always appreciated. Thanks Assetz.
Interesting to note are the differences in the increases between the 2 accounts:
QAA 3.75%->4.1% which is 0.35 percentage points or 9.3% rise
30DAA 4.25%->5.1% which 0.85 percentage points or 20% rise
I wonder if there's a reason for Assetz wanting to push money towards the 30DAA over the QAA.
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cb25
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Post by cb25 on May 16, 2018 17:01:15 GMT
www.assetzcapital.co.uk/invest/our-accounts/30-day-access-account says: "The 30-Day Access Account gives you flexibility while delivering a fair return on investment. It offers a target, capped interest rate for investors of 5.1% p.a. gross. This rate varies, and the current rate will be announced at the start of each month" Would be a bit naughty if AC say, at the start of a month, "now it's X%" where that's a drop on the previous month, thereby locking in all the money invested in the previous few weeks.
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Post by eascogo on May 16, 2018 17:35:06 GMT
Good news for investors, rate bumps are always appreciated. Thanks Assetz. Interesting to note are the differences in the increases between the 2 accounts: QAA 3.75%->4.1% which is 0.35 percentage points or 9.3% rise 30DAA 4.25%->5.1% which 0.85 percentage points or 20% rise I wonder if there's a reason for Assetz wanting to push money towards the 30DAA over the QAA. I assume 30DAA would attract investors with a higher degree of inertia. They are more likely to stay put when the higher rate is withdrawn. A proportion may migrate to AC higher-rate accounts once the higher rate is withdrawn. But the main benefit for AC is that a rate of 5.1% will is bound to generate wide attention and bring in a substantial number of new entrants. A good move by AC and a welcome news to help dispel the somewhat gloomy mood surrounding P2P over the past couple of months.
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jj
Member of DD Central
Jolly Jammy
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Post by jj on May 16, 2018 17:59:28 GMT
I have reservations about the direction in which P2P is going with this. It seems all very black box to me.
Basically this money will be invested in the same loans as MILA but you will get lower rates. So you'll get 5% instead of (a poorly) 7%.
It is predicted in the future that P2P bonds will be the thing to invest in which loans will be jumbled up and sold as a single product. Alright for hand off investment but is/will kill loan selection. It comes across like the junk bonds fiasco that hit the banking sector in 2008.
You have to ask yourself is it right for platforms to make for example 20% on a loan and you 10% 8% 7% 5% on a loan ?
As a shareholder I like it, but as a proactive investor??
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Post by chris on May 16, 2018 18:04:29 GMT
jj - our margin remains the same regardless of which investment account is used to invest in a loan. 100% of the difference in rate between the MLA rate and the account rate is used to fund that account's provision fund.
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Post by Harland Kearney on May 16, 2018 18:09:17 GMT
Nice, already topped up my account with a few left over pennies. Will be continuing to build a position. Very happy with the development, but who wouldn't be as a investor?  |
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jj
Member of DD Central
Jolly Jammy
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Post by jj on May 16, 2018 18:11:18 GMT
jj - our margin remains the same regardless of which investment account is used to invest in a loan. 100% of the difference in rate between the MLA rate and the account rate is used to fund that account's provision fund. I was making an example. I don't know your margins. I can see the risk will be lower to lenders but it will make self selection pointless. I was making a case against P2P bonds which I think these kind of products will lead to.
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jlend
Member of DD Central
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Post by jlend on May 16, 2018 18:17:51 GMT
Nice, already topped up my account with a few left over pennies. Will be continuing to build a position. Very happy with the development, but who wouldn't be as a investor? I assume it does mean there is less money going into the PF than would have otherwise if the accounts had stayed at the old interest rates. I assume that means they are comfortable on the PF funding in these accounts if that is the case.
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