alibaba
Member of DD Central
Posts: 341 
Likes: 245
|
Post by alibaba on Jan 13, 2019 12:07:02 GMT
Spot on
|
|
JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
Likes: 897
|
Post by JamesFrance on May 8, 2019 8:30:42 GMT
I recently opened a new GBBA2 account with a 5 figure investment and it seems surprising that about 15% is allocated to one borrower with no sign of any re-balancing happening. Do all GBBA2 accounts currently have a similar allocation?
|
|
walktall7
Member of DD Central
Posts: 184
Likes: 35
|
Post by walktall7 on May 8, 2019 10:49:13 GMT
Mine does not . I have £4000 plus in aprox 500 holdings with the max being £250 in any any loan. The amount in this GBB2 for changes alot as and when I need money somewhere else. If I ever am going to put a big amount in I always drip feed the money in.
|
|
sl75
Posts: 2,092
Likes: 1,245
|
Post by sl75 on May 8, 2019 11:14:09 GMT
I recently opened a new GBBA2 account with a 5 figure investment and it seems surprising that about 15% is allocated to one borrower with no sign of any re-balancing happening. Do all GBBA2 accounts currently have a similar allocation? For GEA/GBBA/PSA, there are two rebalancing mechanisms I'm aware of: a. "slow" (weeks/months/years) rebalancing as loan units get repaid over time, and different loan units get purchased with the proceeds and/or sold. b. "fast" (days/weeks) rebalancing by swapping loan units with other investors who are over-exposed to a loan for which you are underexposed, and underexposed to a loan for which you are over-exposed.
The "fast" rebalancing used to occur via a series of transactions with descriptions similar to
Exchange loan unit in loan Abc (123) for loan Xyz (789)
However, this did cause some unwanted side-effects, for example, after selling a loan that didn't meet eligibility criteria for the account any more the system would then swap in more units of the loan it just sold, (swapping out a perfectly good loan that it would otherwise have held) and then immediately attempt to sell those newly acquired loan units.
I'd vaguely noted an absence of transactions of that form on my GEA recently, and going back to check, I've not seen a single "Exchange loan unit..." transaction since last July (prior to that they'd been a pretty regular occurrence). It's not clear whether that's because the GEI reached a fully stable position having been closed to new investment so that all investors' portfolios have the same proportion of tradeable loan units, or whether it's because AC "temporarily" switched the exchange loan unit functionality off due to the various unwanted side-effects.
Have you had ANY "exchange loan unit" transactions at all? Are other investors who use PSA and/or GBBA2 still seeing these, and if not when did they stop?
If not, perhaps AC customer services will be able to explain why, with such a large number of loans available, your GBBA2 has chosen to place such a huge amount in a single loan, and what they plan to do to avoid you continuing to have an unacceptably high exposure to a single loan.
|
|
|
|
Post by GSV3MIaC on May 8, 2019 11:45:24 GMT
Single LOAN or single BORROWER? Not sure the AC algorithm can unpick who is related to what, to sort it out by borrower .. even manually I find it hard work.
|
|
JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
Likes: 897
|
Post by JamesFrance on May 8, 2019 13:15:45 GMT
A single borrower over 4 loans with the largest being 5% of the total amount invested. There is plenty of exchanging going on daily but this is not reducing the largest loan amounts so not helping with diversification. I seem to remember that all investors in these accounts would end up with a similar loan allocation so wondered if that still applies today.
|
|
