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Post by lxdaddy on May 29, 2018 15:39:51 GMT
Newbie alert - so apologies if this question has been asked and answered, I have looked through the forum and on Assetz Capital site.
I've recently opened an account with AC and have deposited £1,000 in the 30 Day Access Account (in Standard Accounts) This was invested very quickly. I don't have anything in the other types of accounts. When I looked in the Loan Book it showed 368 different loans with "Your Holding" values totalling £927.97 I know that some of the investment in the 30DAA is held in cash so that's probably where the rest of the £1,000 is.
Four days later I looked at the Loan Book again and now there are 369 loans but the "Your Holding" value total is £916.06. So have I lost some value in four days?
Is the loan book information for investments in 30DAA not meaningful? Does it tell me anything about the state of health of my investment?
I understand that interest will be credited to my account on the 1st of the month. So if I invested £1,000 on 1st May would I see a month's worth of 5.1% interest on £1,000 on 1st June? Or would it be based on the amount in loans ~£916 or ~£920? Or is it based on what the borrowers actually pay back on each loan?
Thanks
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LXdaddy
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r00lish67
Member of DD Central
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Post by r00lish67 on May 29, 2018 15:50:07 GMT
Newbie alert - so apologies if this question has been asked and answered, I have looked through the forum and on Assetz Capital site. I've recently opened an account with AC and have deposited £1,000 in the 30 Day Access Account (in Standard Accounts) This was invested very quickly. I don't have anything in the other types of accounts. When I looked in the Loan Book it showed 368 different loans with "Your Holding" values totalling £927.97 I know that some of the investment in the 30DAA is held in cash so that's probably where the rest of the £1,000 is. Four days later I looked at the Loan Book again and now there are 369 loans but the "Your Holding" value total is £916.06. So have I lost some value in four days? Is the loan book information for investments in 30DAA not meaningful? Does it tell me anything about the state of health of my investment? I understand that interest will be credited to my account on the 1st of the month. So if I invested £1,000 on 1st May would I see a month's worth of 5.1% interest on £1,000 on 1st June? Or would it be based on the amount in loans ~£916 or ~£920? Or is it based on what the borrowers actually pay back on each loan? Thanks ------------------------------------------------ LXdaddy You'll receive interest on the full £1,000 at the advertised QAA rate (in this case 5.1%). What you've calculated, which is actually useful for me as a comparison, thanks, is the cash buffer in your account. So what's happened in the last few days is that the cash buffer has increased because of more people investing, and your 30DQAA (plus presumably everybody else's) therefore does not need to hold quite so much. The lower your actual holdings in the QAA, the better, in a way. The only issue is that if the QAA gap becomes too large, AC will probably eventually drop the rate again as that would indicate there's an excess supply of cash not required for QAA liquidity or new loans.
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Post by chris on May 29, 2018 15:53:13 GMT
There are fluctuations in the amount held in cash. The account will be buying and selling loan units to maintain your holdings to be broadly in line with everyone else's, including maintaining your portion of the cash pool. So as investments flow in and out of the account the system will be actively balancing your holdings and you'll see them fluctuate as well.
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Post by lxdaddy on May 30, 2018 12:11:04 GMT
Thanks for the explanations. So I can view the Loan Book as "for information only" where I only have funds invested in the 30DAA.
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Post by chris on May 30, 2018 13:03:08 GMT
Thanks for the explanations. So I can view the Loan Book as "for information only" where I only have funds invested in the 30DAA. It tells you where you have your funds invested at that point in time, but due to the nature of the account and its focus on liquidity that position changes more rapidly than other accounts.
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cb25
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Post by cb25 on May 30, 2018 13:30:50 GMT
Thanks for the explanations. So I can view the Loan Book as "for information only" where I only have funds invested in the 30DAA. There can also be cash waiting to be invested in the 30DAA, e.g. at the time of writing there's about £124K ahead of the money I'm trying to place there.
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Post by chris on May 30, 2018 14:06:28 GMT
Thanks for the explanations. So I can view the Loan Book as "for information only" where I only have funds invested in the 30DAA. There can also be cash waiting to be invested in the 30DAA, e.g. at the time of writing there's about £124K ahead of the money I'm trying to place there. There shouldn't be. I've given it a kick and it the queue has been cleared.
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cb25
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Post by cb25 on May 30, 2018 14:10:44 GMT
There can also be cash waiting to be invested in the 30DAA, e.g. at the time of writing there's about £124K ahead of the money I'm trying to place there. There shouldn't be. I've given it a kick and it the queue has been cleared. Thanks chris. Transaction log shows it had been that way for 6 hours
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Post by chris on May 30, 2018 14:12:14 GMT
There shouldn't be. I've given it a kick and it the queue has been cleared. Thanks chris . Transaction log shows it had been that way for 6 hours Yeah background process was connected to the DB but queries weren't returning, ie. connection was in a weird state that it didn't detect. Restart cleared it and it caught up within a minute or two and I'll see if I can add some automatic detection for that kind of issue so that it fixes itself next time. Difficult to replicate and test though so may take a couple of attempts.
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sl75
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Post by sl75 on May 30, 2018 16:58:07 GMT
The lower your actual holdings in the QAA, the better, in a way. The only issue is that if the QAA gap becomes too large, AC will probably eventually drop the rate again as that would indicate there's an excess supply of cash not required for QAA liquidity or new loans. There is another potential issue... if the actual holdings in the QAA reach 100% (i.e. the "QAA gap" becomes zero), there's no cash left, so withdrawals from the QAA would become impossible until more cash flows into the account (whether from repayments or from other investors adding funds).
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Post by chris on May 30, 2018 17:39:04 GMT
The lower your actual holdings in the QAA, the better, in a way. The only issue is that if the QAA gap becomes too large, AC will probably eventually drop the rate again as that would indicate there's an excess supply of cash not required for QAA liquidity or new loans. There is another potential issue... if the actual holdings in the QAA reach 100% (i.e. the "QAA gap" becomes zero), there's no cash left, so withdrawals from the QAA would become impossible until more cash flows into the account (whether from repayments or from other investors adding funds). Or from sales of loans units, or from cancelling other pending transactions, or from AC adding additional funds (not sure if we are allowed to do so for compliance but it's possible from a technical point of view). This has been the case from day 1 and is defined within "normal market conditions".
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sl75
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Post by sl75 on May 31, 2018 12:22:02 GMT
There is another potential issue... if the actual holdings in the QAA reach 100% (i.e. the "QAA gap" becomes zero), there's no cash left, so withdrawals from the QAA would become impossible until more cash flows into the account (whether from repayments or from other investors adding funds). Or from sales of loans units, or from cancelling other pending transactions, or from AC adding additional funds (not sure if we are allowed to do so for compliance but it's possible from a technical point of view). This has been the case from day 1 and is defined within "normal market conditions". Sales of loan units would require a willing buyer who is not already using the option to "invest idle funds" (otherwise the payment for the loan units comes from the QAA's own cash reserves, rather than from the buyer's free cash, having no net effect on the cash reserve). As I don't know what ratio of potential buyers would be sourcing their payments from free cash vs from instant withdrawals from the QAA, I'm not in a position to comment on how efficient / inefficient that would be. "Cancelling other pending transactions" confuses me as a way to get more cash into the account - if you need to cancel pending withdrawals from the QAA and/or 30DAA, that is surely the definition of an end to "normal market conditions". As you say, use of AC's own funds would need to be checked for compliance - worst case scenario would be if a drop of confidence caused "everyone" to withdraw funds, AC could end up effectively owning a significant proportion of the loan book before finally agreeing that "normal market conditions" no longer applied, when they no longer had any more cash to prop it up.
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Post by chris on May 31, 2018 12:56:22 GMT
sl75 - sales of loan units - those figures / ratios are actively monitored and therefore known by the system. "Cancelling other pending transactions" - some of the funds can be ring fenced for various reasons and the system can automatically remove that ring-fencing as needed. AC aren't allowed to invest in our own loans for regulatory reasons, so it's likely we couldn't fund the account in that way. Perhaps there's a way to work around that but that's not my area of expertise, I can only advise on the technical possibilities. All that said, so far the QAA has had £521m withdrawn from it so far in swept funds with an average withdrawal time of 0.046 seconds, with even that being artificially inflated due to the way the timer is set to work. QAA direct investments have had £122m withdrawn, and the 30DAA has had £74m withdrawn, so that's a total of £717m withdrawn from the access accounts thus far without delay. The 30DAA also makes up the bulk of the funds which has very predictable withdrawal times that are again known to the system. A run on the account is entirely possible, that's why there is a definition of "normal market conditions" in the account description. If you're uncomfortable with any possibility of a delay in returning your funds then the account, and P2P in general, likely isn't for you.
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cb25
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Post by cb25 on May 31, 2018 15:37:36 GMT
There can also be cash waiting to be invested in the 30DAA, e.g. at the time of writing there's about £124K ahead of the money I'm trying to place there. There shouldn't be. I've given it a kick and it the queue has been cleared. Happening again today: -I tried to invest in 30DAA at 13.43 and 15.17, one of them has occurred, other still queuing now (16.36) -I tried to invest in QAA at 13.43, still queuing (16.36)
Informed AC via Livechat, they said they'd inform you. No idea if they did.
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Post by chris on May 31, 2018 15:40:17 GMT
cb25 - they haven't thus far, but it could be in the post. In this instance it's a genuine backlog due to a load of loan repayments being dumped on the system at once which then triggered a huge number of aftermarket sales and rebalances. It's working through that backlog and will catch up with itself eventually.
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