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Post by brightspark on Dec 23, 2018 17:30:04 GMT
Better off in the 30DA or the MLA. Better off in Growth Street, 80K invested not a penny lost in a year albeit at only 5.3% but I can live without the stress of AC  loan management...... Growth Street is not much akin to AC - no secondary market so they are term loans. The security is business assets rather than property. Its horses for courses.
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markdirac
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Post by markdirac on Feb 6, 2019 8:27:30 GMT
I am not very concerned. Some frozen funds were expected, just not >10%. The accounts still sell out slowly. GBBA2 has much of the rest in just a handful of disproportionally large loans that are in monitored state but not (yet) suspended. Why do you reckon frozen funds are expected? I expected that suspended loans would be frozen, but I am finding (in GBBA2) that there are more frozen loans not suspended than those which are suspended. Why would this be? How are the funds liquidated - who do our GBBA loans get sold to when we "withdraw". Are the funds sold to MLIA investors, or to the other accounts? I am disturbed to find that >10% of my GBBA2 will not liquidate, even though most of it is not suspended.
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jlend
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Post by jlend on Feb 6, 2019 10:13:33 GMT
Better off in Growth Street, 80K invested not a penny lost in a year albeit at only 5.3% but I can live without the stress of AC loan management...... Growth Street is not much akin to AC - no secondary market so they are term loans. The security is business assets rather than property. Its horses for courses. Growth Street loans are all 30 day term loans. How fast can I access my money? All Growth Street loans are 30 days in length. This means that, subject to borrower repayments, investors should have to wait a maximum of 30 days from giving notice to access all the money they have invested.
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corto
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Post by corto on Feb 7, 2019 9:04:22 GMT
I am not very concerned. Some frozen funds were expected, just not >10%. The accounts still sell out slowly. GBBA2 has much of the rest in just a handful of disproportionally large loans that are in monitored state but not (yet) suspended. Why do you reckon frozen funds are expected? I expected that suspended loans would be frozen, but I am finding (in GBBA2) that there are more frozen loans not suspended than those which are suspended. Why would this be? How are the funds liquidated - who do our GBBA loans get sold to when we "withdraw". Are the funds sold to MLIA investors, or to the other accounts? I am disturbed to find that >10% of my GBBA2 will not liquidate, even though most of it is not suspended. Frozen funds are expected because some loans default and others sell very slowly. My GBBA is down to a residual 1.5% since early Dec 18 and the property account is still at 6.5; very few of the loans are suspended. Some of the loans did actually sell significant amounts early during the sell out, so I would agree there is a question why did that slow down? Where and how are they sold? Perhaps I should try to buy&sell a few ££ of some of them in the MLA. Not sure that would necessarily provide much information though. Another thought: The recent AltFi data have AC returns at around 2.5%, which seems very low compared to what most of us would expect (my self-computed XIRR is reasonably close to what the AC total shows). They use different metrics for what "default/suspended" means. Your GBBA2 results may suggest they have a point?
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markdirac
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Post by markdirac on Feb 11, 2019 18:55:02 GMT
I phoned AC and they reckoned that my not-suspended loans are not selling, or selling very slowly, because those loans were very much larger than the rest - over supply for buyers.
I am not surprised that AltFi reckon AC's returns are 2.5%. Half! of my GBBA1 loans are in default ("suspended"). And this proportion seems to vary massively between lenders according to (bad) luck. I cannot imagine how AltFi calculate a representative figure. What surprises me is that there is not more of an outcry about the massive rate of defaults in GBBA1. My AC defaults are far higher % than at Lendy or Thin Cats, or even Rebuilding Society, where there is considerable outcry.
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loan management......
