bg
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Post by bg on Dec 24, 2014 9:53:59 GMT
The new bidding system seems to be a covert operation. How do you know how much money to make available? With extended deposit and withdrawal times it's all become a bit unhelpful. I really hate to say "I told you so" but this is precisely what I have feared since the introduction of the new system. It's because of the lack of new loans drawing-down that it's taken so long to emerge. I don't know how you can say this is worse than before. Previously you had to have money ready to settle bids (or already settled) for months on end. The only issue in my eyes is the lack of new loans.
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jonno
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Post by jonno on Dec 24, 2014 10:03:07 GMT
I really hate to say "I told you so" but this is precisely what I have feared since the introduction of the new system. It's because of the lack of new loans drawing-down that it's taken so long to emerge. I don't know how you can say this is worse than before. Previously you had to have money ready to settle bids (or already settled) for months on end. The only issue in my eyes is the lack of new loans. The reason I can say this can be summed up in two words "SHADOW BIDS" which no longer exist.
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bg
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Post by bg on Dec 24, 2014 10:09:02 GMT
I don't know how you can say this is worse than before. Previously you had to have money ready to settle bids (or already settled) for months on end. The only issue in my eyes is the lack of new loans. The reason I can say this can be summed up in two words "SHADOW BIDS" which no longer exist. Well I don't see it. If you had a shadow bid hanging there which could be called at anytime then I can't see how you could have the cash earning a high interest rate in an instant access account (as opposed to the zero you get on the site now if you leave the cash waiting to buy on drawdown). If a loan is in demand then having shadow bids would not solve anything. Some people would still miss out - it's a supply and demand thing.
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is
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Post by is on Dec 24, 2014 10:10:12 GMT
I don't know how you can say this is worse than before. Previously you had to have money ready to settle bids (or already settled) for months on end. The only issue in my eyes is the lack of new loans. The reason I can say this can be summed up in two words "SHADOW BIDS" which no longer exist. Your target allocation in the MLIA is fulfilling that role, except for lack of guarantee you get the requested amount. This could be handled by switching the system so the allocation requests are processed in order they are posted rather than proportionately, but that in turn brings its own issues / unfairness. If the promised loan pipeline materialises there will be enough liquidity in most of the assets for this not to matter so much.
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jonno
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Post by jonno on Dec 24, 2014 10:17:29 GMT
The reason I can say this can be summed up in two words "SHADOW BIDS" which no longer exist. Well I don't see it. If you had a shadow bid hanging there which could be called at anytime then I can't see how you could have the cash earning a high interest rate in an instant access account (as opposed to the zero you get on the site now if you leave the cash waiting to buy on drawdown). If a loan is in demand then having shadow bids would not solve anything. Some people would still miss out - it's a supply and demand thing. That's the whole point-in the main,shadow bids WERE NOT left "hanging there".They were called in to be financed shortly before draw down. Perhaps you didn't use the shadow bid facility.
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pikestaff
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Post by pikestaff on Dec 24, 2014 12:01:19 GMT
The reason I can say this can be summed up in two words "SHADOW BIDS" which no longer exist. Well I don't see it. If you had a shadow bid hanging there which could be called at anytime then I can't see how you could have the cash earning a high interest rate in an instant access account (as opposed to the zero you get on the site now if you leave the cash waiting to buy on drawdown). If a loan is in demand then having shadow bids would not solve anything. Some people would still miss out - it's a supply and demand thing. In most cases lenders got a couple of days notice to settle shadow bids. This, combined with the few days credit offered by GoCardless, gave lenders enough time to move funds around and/or to sell other investments (not necessarily on AC) to balance their books. It was therefore not difficult to have the money earning while waiting. With the removal of GoCardless because it was no longer economic, and with payments to AC by other means not being credited until the next working day, shadow bids became both less useful to lenders and (more importantly) a dodgy proposition for AC because they would (a) have to be more rigorous about notice, (b) have no forward visibility of funds coming in, and (c) end up wasting a lot of time chasing for money that might be on the way already. So although I miss shadow bids, I do understand why they had to be killed off. I remain hopeful that, when supply of loans picks up, it will be easy enough to get stuff on the aftermarket. I put £2k in at the w/e, which was credited Tuesday morning just in time for the drawdown of MEB and Pembroke, and have successfully picked up about £800 of each together with smaller bits of other targeted loans. I'm pretty encouraged by that.
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niceguy37
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Post by niceguy37 on Dec 24, 2014 12:09:10 GMT
The new bidding system seems to be a covert operation. How do you know how much money to make available? With extended deposit and withdrawal times it's all become a bit unhelpful. I really hate to say "I told you so" but this is precisely what I have feared since the introduction of the new system. It's because of the lack of new loans drawing-down that it's taken so long to emerge. It's a new system with plenty of good points, and some not-so-good points. I think that better information / communication will help lenders get cash ready for when loans do draw down. In the future, as loan volume grows, it would be good to have more automated systems to provide a guide. I'm thinking that each upcoming loan could be updated weekly or fortnightly by the AC staff member responsible for each account, with a brief comment and estimated drawdown. Based on this the system could provide an estimate of cash required in the coming week. For each loan I think it would useful to see the percentage of underwriter holdings, so as to assess future loan availability and demand. Also it would be nice it it showed whether it was interest-only, or repayment, and over what period if not the life of the loan, and any capital holidays.
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acorn
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Post by acorn on Jan 24, 2015 11:38:05 GMT
Loan paused. Payment due yesterday but may be a first payment or 7 day payment window issue.
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mikes1531
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Post by mikes1531 on Jan 24, 2015 15:50:39 GMT
Loan paused. Payment due yesterday but may be a first payment or 7 day payment window issue. "7 day payment window" ?? I didn't realise AC had a policy giving that. If they do, then why does the Aftermarket in loan parts become suspended the day after a payment is due and not received? If a payment isn't really late until a week after the due date, then trading of parts shouldn't be suspended until that week has elapsed. Though not relevant in this case, if a payment on Monday is acceptable for payments due at the weekend, why isn't the Aftermarket suspension delayed until after the Monday has passed and the payment still was not received?
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bugs4me
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Post by bugs4me on Jan 24, 2015 16:14:37 GMT
Loan paused. Payment due yesterday but may be a first payment or 7 day payment window issue. "7 day payment window" ?? I didn't realise AC had a policy giving that. If they do, then why does the Aftermarket in loan parts become suspended the day after a payment is due and not received? If a payment isn't really late until a week after the due date, then trading of parts shouldn't be suspended until that week has elapsed. Though not relevant in this case, if a payment on Monday is acceptable for payments due at the weekend, why isn't the Aftermarket suspension delayed until after the Monday has passed and the payment still was not received? IIRC, the 7 days leeway is what AC actually allow but the computer says no to anything that's credited late. Whether it's caused by weekends, bank holidays, etc.
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acorn
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Post by acorn on Jan 24, 2015 16:35:51 GMT
That's what I meant, and that some borrowers have appeared to take advantage of this on a fairly regular basis., though this may not be the case here.
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agent69
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Post by agent69 on Jan 25, 2015 10:07:50 GMT
Loan paused. Payment due yesterday but may be a first payment or 7 day payment window issue. Loan 36 (CC Hotel) also paused - payment due yesterday. I don't know why they don't apply a bit of common sense and say ho pausing if weekend repayments are a day or two late.
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oldgrumpy
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Post by oldgrumpy on Jan 25, 2015 10:22:11 GMT
Loan paused. Payment due yesterday but may be a first payment or 7 day payment window issue. Loan 36 (CC Hotel) also paused - payment due yesterday. I don't know why they don't apply a bit of common sense and say no pausing if weekend repayments are a day or two late. Because if it turned out to be the start of a default everybody (maybe even you?) who had bought units in the meantime would cry, "why didn't you pause trading as soon as the payment was late?" So AC is damned by somebody whatever they do? Immediate pause is the best policy.
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bg
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Post by bg on Jan 25, 2015 11:24:46 GMT
They should just roll the due date for any payment that falls on a weekend until the Monday.
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ilmoro
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Post by ilmoro on Jan 25, 2015 11:40:42 GMT
They should just roll the due date for any payment that falls on a weekend until the Monday. Couple of reasons why they probably dont a) somebody has to take the time to check all the loans each month and amend them b) the way the system works, this would probably have a knock on effect on the accrued interest calculations which, as we have discovered, isnt really something to fiddle with. Cant really see the problem myself. The loan isnt tradeable for two days, but I dont suspect there are a massive number of people who need to trade it urgently anyway. Nothing stops people from changing targets which will then come into play Monday when the payment is made. As oldgrumpy says if it is a default its better the loan is suspended immediately so that the very hands on lenders who monitor minutiae dont have a chance to sell out when a payment is a day late at the expense of less hands on investors.
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