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Post by Harland Kearney on May 16, 2018 18:23:48 GMT
Not sure how the above is linked to your comment; I just put a few extra pennies in the QAA rather than my current account bank interest. Interesting to read what other investors make of the rate rise.
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Post by df on May 16, 2018 18:25:10 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 They are more likely to stay put when the higher rate is withdrawn. A proportion may migrate to AC higher-rate accounts once the higher rate is withdrawn.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. That's exactly what I did when they temporarily increased 30-Day to 4.75%. I've invested more in this account and when the rate went back to normal most of my increase went to MLA, I didn't withdraw anything from AC since.
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dave2
Member of DD Central
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Post by dave2 on May 16, 2018 18:30:26 GMT
Very nice of the Assetz chaps to backvalue the effective date to the start of May. 
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Post by df on May 16, 2018 18:44:51 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. Isn't it the same with any platform? Their promotion perks are designed to increase their profit. These are not favours to mates. It is a business relationship that they have with us. I can't see what's wrong with thanking AC for making a good move. As investors we benefit from AC's success.
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r00lish67
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Post by r00lish67 on May 16, 2018 18:50:19 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?? I'm a bit of a convert of late to some of the black-box operations. The problem with the 7% assetz accounts that I had is the use of a provision fund that can be punted into the far future through awaiting all types of recovery actions, whilst the QAA/30DQAA is pure in the sense that (admittedly subject to normal conditions) I can release all of my capital at will. I personally found 3.75% too low to be worth switching from FSCS, but 4.75% with the spring bonus seemed like a reasonable rate. I also like Ratesetter (for 6%+ 5yr), LendingWorks (6% 5 yr) and perhaps to a lesser extent Growth Street (30 day rolling 5.3%) for similar reasons. It's still a bit proactive, as you keep your ear to the ground and switch around as rates wax and wane, but at least you won't have your funds tied up in the latest P2P property mafia's hole in the ground and/or on a platform with questionable prospects for the future. Edit: also wanted to add my thanks for chris spending so much time addressing questions on this forum. It really is much appreciated, and I'm especially glad to hear his justification around the rate increase. I have to admit, my first thought was 'uh-oh'. Also, glad to hear transparency will be on the increase. I definitely would like to see the QAA size back in full view, requested this from customer services yesterday too after I noticed it had gone walkies.
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Post by df on May 16, 2018 19:12:24 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?? I don't think it is right or wrong. I'm interested in what return I get and the level of risk I'm taking, not so much in what they are making. Although there is a potential benefit to investors if the platform is in a healthy financial position.
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Post by pikeman on May 17, 2018 4:55:19 GMT
I am struggling to get a modest amount invested on the QAA. I transferred some money over 12 hours ago and it is still in a queue
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ashtondav
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Post by ashtondav on May 17, 2018 7:10:59 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. Who gives a damn! 5.1% for 30 day money. Give me black box accounts or bonds any day.
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dandy
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Post by dandy on May 17, 2018 7:15:49 GMT
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. Who gives a damn! 5.1% for 30 day money. Give me black box accounts or bonds any day. its actually 0.425% for 30 day money. There is no commitment to that rate for a year and if you do get it for a year that is w/o taking into account any potential losses. One year in a long time in this game ...
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cb25
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Post by cb25 on May 17, 2018 7:27:52 GMT
Who gives a damn! 5.1% for 30 day money. Give me black box accounts or bonds any day. its actually 0.425% for 30 day money. There is no commitment to that rate for a year and if you do get it for a year that is w/o taking into account any potential losses. How do you see a loss occurring in this PF-protected account ? If I compare AC's 30-day account @ 5.1% vs my oldest FC account and my Zopa account, each of FC and Zopa -is currently returning less than 5.1% (in my case) -has no provision fund -has a proven history of bad debt (quite a lot in Z at the moment) Accept AC might not use the PF against bad debt, but until that happens AC is a bit of a no-brainer for me.
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Post by Ton ⓉⓞⓃ on May 17, 2018 8:17:44 GMT
I am struggling to get a modest amount invested on the QAA. I transferred some money over 12 hours ago and it is still in a queue Ah, my experience is that you should be able to invest in it almost instantly. There is a £200k; limit are you over that? If not can you give a bit more detail or use the "Live Chat" button on the side of the screen when logged into AC.
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ashtondav
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Post by ashtondav on May 17, 2018 8:22:43 GMT
Who gives a damn! 5.1% for 30 day money. Give me black box accounts or bonds any day. its actually 0.425% for 30 day money. There is no commitment to that rate for a year and if you do get it for a year that is w/o taking into account any potential losses. One year in a long time in this game ... I meant annualised. I very much doubt that AC will reduce these rates, if anything we are in a rising rate environment.
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cb25
Posts: 3,528
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Post by cb25 on May 17, 2018 8:23:22 GMT
I am struggling to get a modest amount invested on the QAA. I transferred some money over 12 hours ago and it is still in a queue Ah, my experience is that you should be able to invest in it almost instantly. There is a £200k; limit are you over that? If not can you give a bit more detail or use the "Live Chat" button on the side of the screen when logged into AC. I was trying to invest several chunks of money into the 30DAA from 17.33 yesterday (accept not the QAA), was shown as queuing, transaction log shows it being invested 08.49 this morning, more than 15 hour wait.
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ashtondav
Member of DD Central
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Post by ashtondav on May 17, 2018 8:23:58 GMT
its actually 0.425% for 30 day money. There is no commitment to that rate for a year and if you do get it for a year that is w/o taking into account any potential losses. How do you see a loss occurring in this PF-protected account ? If I compare AC's 30-day account @ 5.1% vs my oldest FC account and my Zopa account, each of FC and Zopa -is currently returning less than 5.1% (in my case) -has no provision fund -has a proven history of bad debt (quite a lot in Z at the moment) Accept AC might not use the PF against bad debt, but until that happens AC is a bit of a no-brainer for me. FC generating less than 5%!!! Blimey that’s their stress test result for a recession.  happened to your wedge?
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dandy
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Post by dandy on May 17, 2018 8:43:47 GMT
its actually 0.425% for 30 day money. There is no commitment to that rate for a year and if you do get it for a year that is w/o taking into account any potential losses. If I compare AC's 30-day account @ 5.1% vs my oldest FC account and my Zopa account, each of FC and Zopa -is currently returning less than 5.1% (in my case) -has no provision fund -has a proven history of bad debt (quite a lot in Z at the moment) Accept AC might not use the PF against bad debt, but until that happens AC is a bit of a no-brainer for me. I am not sure if that is a serious question? BUT just in case I think there is ~ £120m in the access accounts with ~ 350 loans. I do not know what amount of that is currently suspended/defaulted but I imagine it is about 10% (£12m). How big is the PF that covers losses on these accounts? I do not know. Do you? When we are told we can make a more informed decision about the risks. I do not mean to come across as critical. I think the QAA/30DAA are amazing innovative products that have made AC what it is today - better than the rest quite frankly - but I do not like the lack of data surrounding them such as PF size value of suspended loans (for default reasons) value of undrawn development finance this data is very important for risk/liquidity reasons and without it the accounts are not transparent enough to be properly assessed on their true merits
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happened to your wedge?