Loans available at a discount (AC)

Even the total facility for this "larger dev loan" seems to be £895k which isn't exactly "large" in the context of a platform where there are several individual loans of more than £5M, and 41 loans where (by my calculations) the access accounts appear to hold more than £1M, and 87 loans in total (including the 41) where they hold more than 0.5M.

The access accounts appear to have over £6M in a single loan (#580), and almost as much in suspended loan #312, so I very much doubt that a mere 6-figure sum of #1000 representing an amount less than 15% of its largest single-loan exposure would be considered "big exposure" in context. With the access account total now exceeding £180M, even the full £895k would represent less than 0.5% of the total fund.

Instead, I think they're more concerned about cashflow in the access accounts given the sheer volume of new loans (and additional tranches of existing loans) coming through the pipeline.

In particular, I've just run some additional calculations on a couple of consecutive downloads, and it appears that between 13:30 yesterday and 08:00 this morning, the access accounts increased their holdings in #717,#745,#784,#831,#958,#986,#988,#1001,#1002, with the total of the net increases of these loans being over £1M. Only 2 of these were brand new loans, the rest correspond with "principal further advance" transactions dated 17 April. It was also selling down lots of other loans (or in some cases may have had a reduced balance due to a partial repayment - I can't easily tell the difference), which left the overall net increase at only just over £0.8M, and it does not appear to be buying anything.

I'm not sure how easily I can find out how much AC has committed to funding over the next (say) 30 days, but I wouldn't be surprised if it was rather more than the approx £15M of cash available in the access accounts - hence the need for underwriter funds. (for comparison, the total of loans in the "upcoming loans" section is over £40M, which includes loans AC would not yet have committed to funding in the short term, but excludes principal further advances on existing loans).

In the meantime, the availability of loans at discounts continues to succeed in making me (and probably others like me) bring fresh funds onto the platform to participate... but those additional funds are likely only "temporary" - I have no compelling reason to keep them on-platform in the long term unless similar discounts on similar loans continue to be routinely available.

(a previous instance of this post had another paragraph here referring to the latest update from bg from a few minutes ago that seems to have been deleted)

I've not automated that process yet, but for curiosity I did another "spot check" based on stuff that happened overnight. Comparing a snapshot today at 09:35 with yesterday's 14:50 snapshot, the access accounts had an overall increase of just over £0.93M across loans #787,#804,#828,#852,#937,#994,#1005. The last was a new drawdown of which the access accounts had almost 75%, and based on a corresponding increase in the "loan amount" column the others were principal further advances, where the access accounts took about 97% of the further advance (net of any sales in the same period). In the meantime sales from and/or capital repayments into the access accounts of other loans totalled about £226k for an overall net increase of around £0.71M, again without the access accounts "buying" anything.

The access accounts seem to be being kept busy with new loans and additional principal advances even if underwriters aren't...

Thought it was probably an error of some kind... but wasn't sure whether the error was large enough to invalidate the point I'd been making, which is that the stats showing a slight increase since the previous update feel slightly in conflict to my own subjective experience that discounted loan parts seem to be almost entirely dried up (which is probably more influenced by the fact I've now had my fill of most of the ones that have been available for an extended period).

It does seem notable however, that none of the most recently drawn loans have any availability at a discount at all, suggesting that underwriters are no longer needing to recycle cash as quickly (perhaps due to the recent change in underwriting conditions that tonyr alluded to but did not spell out in detail).