bg
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Post by bg on Apr 14, 2019 7:01:13 GMT
Discount loans (amount):-  |
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tonyr
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Post by tonyr on Apr 14, 2019 7:45:49 GMT
The proportion of cash in the access accounts has gone up 2/3 percentage points in the last week too. Sorry for being thick, but where do I see "The proportion of cash in the access accounts"?
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ilmoro
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Post by ilmoro on Apr 14, 2019 8:02:23 GMT
The proportion of cash in the access accounts has gone up 2/3 percentage points in the last week too. Sorry for being thick, but where do I see "The proportion of cash in the access accounts"? It's not a displayed figure. You have to calculate it. Add up your loan holdings in QAA (download & sum in excel) and work out what percent of your total investment in the QAA it represents. Variance to 100% is the cash component. Eg 10k in account, £9.5k in loans, so 95% invested, rest is cash.
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tonyr
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Post by tonyr on Apr 14, 2019 11:24:11 GMT
Sorry for being thick, but where do I see "The proportion of cash in the access accounts"? It's not a displayed figure. You have to calculate it. Add up your loan holdings in QAA (download & sum in excel) and work out what percent of your total investment in the QAA it represents. Variance to 100% is the cash component. Eg 10k in account, £9.5k in loans, so 95% invested, rest is cash. Thanks! I see that £1.29 of my £1.40 in the QAA is invested - I guess 7.9% is not a very accurate answer, I shall invest £100 to find out better. I do appreciate all the help I get here.
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rscal
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Post by rscal on Apr 14, 2019 12:46:28 GMT
It's not a displayed figure. You have to calculate it. Add up your loan holdings in QAA (download & sum in excel) and work out what percent of your total investment in the QAA it represents. Variance to 100% is the cash component. Eg 10k in account, £9.5k in loans, so 95% invested, rest is cash. Thanks! I see that £1.29 of my £1.40 in the QAA is invested - I guess 7.9% is not a very accurate answer, I shall invest £100 to find out better. I do appreciate all the help I get here. Mine was 253 out of 3213 which is ... 7.89% so it appears we are all tracking the same ratios [And I hadn't previously thought about this, so thanks all!]
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walktall7
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Post by walktall7 on Apr 14, 2019 15:23:56 GMT
I guess I just wondered if an influx of new ISA money for the 2% incentive would then takes bits of these 2,3,4% discounts. That's up to a 6% tax-free bonus, before you even factor in the actual loans' interest. But like you say, maybe people have already had their fill of these certain loans. Yes, it sounds very attractive. One thing to bare in mind is that nobody knows how all these loans will end up, so the actual overall return can be lower than it looks. Also there are other IFISA offers on the market that many investors find attractive. One problem of having MLA loans in a IFSA is that if there are any capital losses you cannot offset loses of capital against interest received as you are already getting the interest tax free. Not easy to put this in plain english
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bg
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Post by bg on Apr 14, 2019 19:57:20 GMT
Yes, it sounds very attractive. One thing to bare in mind is that nobody knows how all these loans will end up, so the actual overall return can be lower than it looks. Also there are other IFISA offers on the market that many investors find attractive. One problem of having MLA loans in a IFSA is that if there are any capital losses you cannot offset loses of capital against interest received as you are already getting the interest tax free. Not easy to put this in plain english Yes but that is the same for losses on loans held in any other account (30DAA, QAA or 30DAA) held in an ISA. It isn't MLA specific.
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walktall7
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Post by walktall7 on Apr 14, 2019 20:09:51 GMT
One problem of having MLA loans in a IFSA is that if there are any capital losses you cannot offset loses of capital against interest received as you are already getting the interest tax free. Not easy to put this in plain english Yes but that is the same for losses on loans held in any other account (30DAA, QAA or 30DAA) held in an ISA. It isn't MLA specific. I thought the provision funds might cover losses in the other accounts , thanks bg for your knowledge.
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bg
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Post by bg on Apr 14, 2019 20:23:35 GMT
Yes but that is the same for losses on loans held in any other account (30DAA, QAA or 30DAA) held in an ISA. It isn't MLA specific. I thought the provision funds might cover losses in the other accounts , thanks bg for your knowledge. 'Might'. That's the thing. There are AC loans that the automated accounts hold over £6m of. If one of those went pop I don't think the provision fund would come anywhere near covering. I remember having conversations with Lendy investors a couple of year ago who saw it as a fantastic low risk high yield investment as the provision fund would cover any losses. Not sure that is much help now.
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walktall7
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Post by walktall7 on Apr 15, 2019 11:23:12 GMT
I transferred as much as possible from my IFSA last September because of the risk to capital loss. And will not in the future will not put money in a IFSA acount
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sl75
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Post by sl75 on Apr 15, 2019 15:12:58 GMT
I happened to speak to AC yesterday, and they mentioned that their 'funds processing' side had been very busy with ISA deposits and transfer's in. The proportion of cash in the access accounts has gone up 2/3 percentage points in the last week too. Not only has the proportion of the access accounts invested been falling, but the absolute amount... I've only got 4 snapshots since the start of the tax year, but they show:
07/04/2019 17:50: £168.8M of £176.9M invested
10/04/2019 10:20: £166.7M of £177.4M invested
12/04/2019 09:55: £165.9M of £177.5M invested
15/04/2019 12:45: £164.7M of £178.5M invested
Overall, a £4M drop in invested funds despite nearly a £1.5M increase in total invested.
The access accounts appear to be selling into the demand too, and do not themselves appear to be creating demand (directly or indirectly).
I'd guess that (if they haven't already) AC will be reducing the proportion of new loans made available to underwriters, funding a higher proportion directly from the free cash in the access accounts, which would tend to lead in a reduction in discounted loan parts, as underwriters will no longer needing to recycle funds as quickly...
Following that, I may actually start to get some uninvested cash again, as available discounted loans meeting my criteria start to determine how much I buy rather than available funds.
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star dust
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Post by star dust on Apr 15, 2019 20:00:31 GMT
I happened to speak to AC yesterday, and they mentioned that their 'funds processing' side had been very busy with ISA deposits and transfer's in. The proportion of cash in the access accounts has gone up 2/3 percentage points in the last week too. <snip>
I'd guess that (if they haven't already) AC will be reducing the proportion of new loans made available to underwriters, funding a higher proportion directly from the free cash in the access accounts, which would tend to lead in a reduction in discounted loan parts, as underwriters will no longer needing to recycle funds as quickly...
Following that, I may actually start to get some uninvested cash again, as available discounted loans meeting my criteria start to determine how much I buy rather than available funds.
I wouldn't be surprised at the former, and you might be 'lucky' with the latter if #1000 is anything to go by - it's a small loan, and I'm not sure how much went out at a discount, but I didn't get anywhere near my target purchase.
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Post by df on Apr 15, 2019 20:55:27 GMT
<snip>
I'd guess that (if they haven't already) AC will be reducing the proportion of new loans made available to underwriters, funding a higher proportion directly from the free cash in the access accounts, which would tend to lead in a reduction in discounted loan parts, as underwriters will no longer needing to recycle funds as quickly...
Following that, I may actually start to get some uninvested cash again, as available discounted loans meeting my criteria start to determine how much I buy rather than available funds.
I wouldn't be surprised at the former, and you might be 'lucky' with the latter if #1000 is anything to go by - it's a small loan, and I'm not sure how much went out at a discount, but I didn't get anywhere near my target purchase. Can't get my head around it. I got #1000 at 1% discount and the same with many loans in recent months. I put my bid in when the loans are still in upcoming section and set my investment orders at par. Not complaining about suddenly getting an extra 1% of capital, it's very nice, but to me it suggests the whole amount was bough by UW before the loan went live. Why would they do this?
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sl75
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Post by sl75 on Apr 16, 2019 6:41:57 GMT
Can't get my head around it. I got #1000 at 1% discount and the same with many loans in recent months. I put my bid in when the loans are still in upcoming section and set my investment orders at par. Not complaining about suddenly getting an extra 1% of capital, it's very nice, but to me it suggests the whole amount was bough by UW before the loan went live. Why would they do this? As I understand it, because their fee for providing the service is equivalent to rather more than 1%... so the faster they get the resulting loan parts sold, the sooner they can commit the same funds to the next loan awaiting drawdown and get another slice of fee.
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corto
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Post by corto on Apr 16, 2019 7:29:20 GMT
Given they discount at up to 4% their fees must be lovely.
Money recycled how often? 4? 6 times a year?
Who pays?
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