Loans available at a discount (AC)

5%+

Well spontaneous give or take the 5 days AC have taken to credit the funds & since it stopped paying interest 

Not that it will dent your profits 

If they had the spare money, sure. That'd be a deviously brilliant (and possibly illegal? Or just immoral?) scheme.

I just wonder.... where did all that money suddenly come from? With the whole world on lockdown, and the pub closed to business? Didn't the loan have like 2 years left to run and absolutely no indication it was about to repay?

*note to future self - build time machine. Go back in time. Buy ALL of the discounted loan*

FCA authed 

Just wondering whether there's been any notable impact of AC gaining CBILs approval to the amounts on the SM.  A quick scan provides the following (rounded):

Discount    £££ Available
At Par        82,560k 
>0, <= 5%        840k 
>5, <=10%        272k 
     >10%         32k

Discounts of 5% or more is c. £300k which is down on bg's last post from the 8th of April, but doubt there's sufficient data to draw any conclusions from just those two snapshots.  Any insights, bg ?

It seems the main impact has been a big reduction in the level of the discounts offered (the amount for sale at a discounted has roughly halved since mid April but most of this fall occurred before the announcement) which is to be expected.  A substantial proportion of AC's loans are development loans and the CBILs announcement has seemingly removed the big risk that was hanging over them - that AC couldn't fund future contracted tranches.  On the back of this, discounted sales of development loans have either repriced or been bought.  All double digit discounts have gone, just a few remain discounted around the 5-6% mark (and these are mainly loans that have a maturity date in the next few weeks).  

Just as importantly a huge shadow over the platform has been lifted.  Funding of future dev loan tranches was by far my biggest concern, this fear has now gone and AC also has the potential for a secure income stream that should see it go from strength to strength.  I would imagine institutional investors would be queuing up for these loans given much of their downside will now be borne by the government.  I also expect this new line of fee income will enable AC to remove the lender fee which they should be keen to do as soon as possible to further boost sentiment.

This is also great news for investors in the Access accounts.  Once the CBIL loans come online it means that while there is still an excessive withdrawal demand all capital repayments can be used to repay capital instead of being held back to fund future commitments.  The discounts offered once secondary market trading of these accounts commences will be significantly lower than had it commenced before this announcement.  I think there will be plenty happy to pounce if people panic and sell at a silly level.  Also this should be a good boost to liquidity.  Some people may be happy to sell their QAA holding at a small discount to buy on the MLA at a bigger discount, while others may be happy to sell popular loans in the MLA at par to recycle into the QAA at a discount.  All of this is beneficial, will help the platform and should see discounts narrow further.

You can see the impact on loans offered at 5% discounts or above if you compare to the last list I posted:-