michaelc
Member of DD Central
Say No To T.D.S.
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Post by michaelc on Feb 6, 2019 17:02:05 GMT
Is there a way to get a feel for how long an mla sale will likely take? Something like the loan queue or similar?
In general for loans that are in good health, what is the expected time to sell at the moment?
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Post by mrclondon on Feb 6, 2019 17:30:51 GMT
If there is no current queue and you are selling less than say £10k it will probably all go the next time the loan is processed (cycle rate seems to be c. 14 hours ? ). i.e. there are multiple unfilled buy orders for many loans sat waiting for someone to make a sale.
For loans where there is a queue (that has persisted for at least one processing cycle) I'm not sure how the algorithm works but in theory each purchase will take a chunk from every sell order in the "queue" - ignoriing discounts (i.e. it isn't a queue of FIFO). I think its a bit more complex than a linear allocation as small sell orders seem to clear (percentage wise) quicker than large sell orders.
If you need access to funds quickly, I'd suggest putting a sell order in at par (assuming no discounts being offered and a smallish queue), then after 24 hours change that to a 1% discount to shift whatever remains.
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mjc
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Post by mjc on Feb 6, 2019 18:46:59 GMT
A short while ago I put in a sell of the £22.50 interest on the ISA MLA, and after a week only £12.50 had been transferred to the cash a/c. So I cancelled that and put in sell all, (it’s only a token £1k), and none of that has been transferred yet, after about 5 days. However I had not changed the Reinvest All box. Not sure if that contradicts the withdraw to cash. I just don’t understand how this account works. I’ll stick with the other 4 accounts.
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trium
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Post by trium on Feb 7, 2019 1:53:41 GMT
Is there a way to get a feel for how long an mla sale will likely take? Something like the loan queue or similar? In general for loans that are in good health, what is the expected time to sell at the moment? I don't believe there is. My understanding, which may not be entirely correct, is this. When the Assetz system looks at a particular loan it takes stock off all the current buy/sell instructions for that loan. Some of these may have recently appeared, some may have been waiting some time, but there is no queue as such. All instructions rank equally. If buys exceed sells, all sells will be executed and the corresponding buys will be distributed among the buyers. The distribution is not pro rata. If 10k of sales is matched by 5 buy orders totalling 20k each buyer will be allocated 2k. If any buyer has asked for less than that he will receive 100% of his order and the remainder of his 2k allocation is shared among the other buyers. If sells exceed buys, all buys will be executed and each seller will contribute an equal amount towards the total. If any seller instructed a smaller sale he will be rid of 100% of his order and the remainder of his 2k allocation will be shared among the other sellers. Examples: Sells 2k 10k 6k Buys 3k 2k 15k 9k Total sells = 18k Total buys = 29k. All sells executed in full. 4 buyers share 18k. Buys of 3k and 2k settled in full - other two buyers get 6.5k each ((18-5)/2) Sells 2k 10k 6k Buys 3k 2k 7k Total sells = 18k Total buys = 12k. All buys executed in full. 3 sellers share 12k. Sell of 2k settled in full - other two sellers sell 5k each. Foregoing assumes no discounts. Offers to sell/buy at discount are dealt with first and you are unlikely to sell at par in the face of competition from a discounter, except that the packaged accounts ignore discounts and may from time to time buy loans from you at par even when competitors are offering discount. It's also clear from the foregoing that small sales are very much easier to achieve than large ones. All the usual factors will have a bearing too - updates giving cause for concern, MLA investors not keen on 6% loans, late payments, etc. You may need to offer significant discounts to shift some loans.
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ceejay
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Post by ceejay on Feb 7, 2019 10:13:16 GMT
Is there a way to get a feel for how long an mla sale will likely take? Something like the loan queue or similar? In general for loans that are in good health, what is the expected time to sell at the moment? Not really. Amount of loan on sale is certainly a factor, but more important is the desirability of the loan. Low rates and high LTVs are immediately visible. The odd late payment or something buried in the loan documents is harder to spot. I've had some sales dribble out over a few days, and others which have barely been touched after months. On the whole it's best to assume that you may have to hold any loan to completion, unless you are prepared to offer a discount.
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Post by hammertime on Feb 7, 2019 10:15:44 GMT
Three weeks ago i sold £50000 to redistribute some funds and it only took 48 hours.
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mjc
Member of DD Central
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Post by mjc on Feb 7, 2019 17:21:52 GMT
Is there a way to get a feel for how long an mla sale will likely take? Something like the loan queue or similar? In general for loans that are in good health, what is the expected time to sell at the moment? Not really. Amount of loan on sale is certainly a factor, but more important is the desirability of the loan. Low rates and high LTVs are immediately visible. The odd late payment or something buried in the loan documents is harder to spot. I've had some sales dribble out over a few days, and others which have barely been touched after months. On the whole it's best to assume that you may have to hold any loan to completion, unless you are prepared to offer a discount. Do we have to select specific loans to sell? I suppose if that’s not done, one has to just wait until each loan ends. I’m in no hurry to exit, but the GBBA and PSA seemed to exit immediately. Perhaps it was all as uninvested cash.
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ceejay
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Post by ceejay on Feb 7, 2019 20:37:19 GMT
Do we have to select specific loans to sell? I suppose if that’s not done, one has to just wait until each loan ends. I’m in no hurry to exit, but the GBBA and PSA seemed to exit immediately. Perhaps it was all as uninvested cash. The clue is in the name - MANUAL lending account. All buying and selling has to be done specifically by you, per loan. If you want someone else to do that, you can indeed use GBBA/PSA, at the expense of some return and a lot of control. GBBA/PSA will only exit immediately if the loans in which you are invested are not suspended: if any are, you have to wait for them to unlock. If they're not suspended, you will *normally* be able to get out due to the liquidity floating around in the system. Personally I don't use GBBA/PSA - I think 30DAA is much better value. For only a smidge less return, you get a significantly improved liquidity - in *normal* conditions you can get all your money out even if some of the loans you are notionally in are suspended. This is the key difference between the Access accounts and the others.
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mjc
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Post by mjc on Feb 7, 2019 20:45:37 GMT
Nice to know. This would be helpful in the About on each account. I will keep most of the funds in the 30d as now 30 times as much!
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dead-money
Rocket to the Moon
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Post by dead-money on Feb 8, 2019 19:16:18 GMT
My experience is that PSA and GBBA2 has worse liquidity than MLA.
I've had total sell orders in place for over six months and still have holdings in 19 loans within PSA and 9 within GBBA2 with no significant reduction in capital over that time.
MLA I've had sell orders on four lower rate loans for same time period and zero sells. But for more attractive loans MLA sells can occur within hours.
So assume all loans need to be held to maturity and possibly way beyond...
Any new monies I'm sticking with the 30 Day Access account !
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