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Post by andrewholgate on Oct 10, 2014 7:52:51 GMT
Perhaps I'm misunderstanding how PGs work. If the total amount owing on the FF case exceeds the amount of the PG, is it possible to recover more than the PG amount from the guarantor if they have sufficient assets? Or does the amount of the PG effectively limit the amount that could be recovered? The PG has a limit and that is the maximum that could be recovered. If the customer has assets of £1m but the PG is for £250k, we could only recover £250k.
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Post by chris on Oct 10, 2014 7:57:58 GMT
"I guess no more need for any Nazgul accounts moving forward."
I do hope shadow accounts will be retained. When a small new loan is listed as "awaiting drawdown" the ability to "reserve" (with limits) some units in a similar way to the current method will still be very relevant for investors who cannot be online at the precise moment a loan is opened up to everybody. The current message to settle such shadowbids (i.e. put money in the account) could still be sent (say) two days before a loan is expected to be launched live onto the platform.
Has this idea already been programmed in to the "no more auction" model starting next Monday?
PS. Can I assume Andrew's "wheels are secure" message will be emailed to all investors? Only a small percentage probably reads this forum.
There will no longer be a shadow bid facility, and the client money rules would prevent such a facility for the actual transfer of loan units as we can only deal with settled funds. You will be able to set up auto invest instructions prior to the loan drawing down but at actual point of drawdown you'll need cleared funds for those instructions to be enacted. There's also some other interesting features that'll be discussed more widely in the coming days that will allow for automatic diversification so the system will sell loan units only if there are new loan units available to invest your funds in, within parameters and targets you set. For basic retail investors they will stick their money in and the system will do the rest but for those who want more control there's a lot of options behind the scenes to set things up exactly how you want. There's clearly going to be a bedding in period with this where both lenders and us need to work out new processes and procedures to keep everyone as happy as possible. For example sending an email out to interested lenders when we start calling upon underwriters to fund their bids as the loan drawdown is imminent. That would then give you notice that you should transfer funds in if you want to invest in a given loan.
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TFTO
Member of DD Central
Posts: 143 
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Post by TFTO on Oct 10, 2014 8:10:59 GMT
What about giving those of us who would rather not use AI the opportunity of bidding at the same time as the underwriter funds are called in?
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Post by chris on Oct 10, 2014 8:17:55 GMT
What about giving those of us who would rather not use AI the opportunity of bidding at the same time as the underwriter funds are called in? That would break the philosophy of the rest of the site. AI has been simplified but with loan part splitting, merging, and automated diversification truly manual bidding would be massively disadvantaged and complicated so no longer exists. The simplified AI is the new manual option.
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Oct 10, 2014 8:28:50 GMT
"There will no longer be a shadow bid facility, and the client money rules would prevent such a facility for the actual transfer of loan units as we can only deal with settled funds."
You wouldn't be transferring any loan units if we hadn't already settled our funds to cover shadow requests!
OK, I suppose the AI tool, even as it works now, would do the job because we could fund our accounts and set our AI parameters to buy units as soon as they become available, providing we have (say) that two days notice that the loan is to become live.
Can I suppose that if Boyo Recycling (Cardiff) only needed a loan of £75K, and Old Grumpy set his AI to buy £100, and Old Greedy and Mrs Greedy set theirs AI to buy £50K, and £25K, a cap would be placed (initially) on what the Greedys could have, so that OG and everyone else would get a slice until all AIs had something? (Similar to the current initial auction bid limits in the first 24 hours). (Detailed reply not needed - you have more important work to do 
(cross posted before reading Chris's latest)
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Post by chris on Oct 10, 2014 8:37:51 GMT
"There will no longer be a shadow bid facility, and the client money rules would prevent such a facility for the actual transfer of loan units as we can only deal with settled funds."
You wouldn't be transferring any loan units if we hadn't already settled our funds to cover shadow requests!
OK, I suppose the AI tool, even as it works now, would do the job because we could fund our accounts and set our AI parameters to buy units as soon as they become available, providing we have (say) that two days notice that the loan is to become live.
Can I suppose that if Boyo Recycling (Cardiff) only needed a loan of £75K, and Old Grumpy set his AI to buy £100, and Old Greedy and Mrs Greedy set theirs AI to buy £50K, and £25K , a cap would be placed (initially) on what the Greedys could have, so that OG and everyone else would get a slice until all AIs had something? (Similar to the current initial auction bid limits in the first 24 hours). (Detailed reply not needed - you have more important work to do (cross posted before reading Chris's latest) There's a balancing algorithm that tries to balance all requests as fairly as possible, looking at the whole loan book rather than specific loans in isolation. Old Grumpy will be taken care of with his needs matched against others.
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merlin
Minor shareholder in Assetz and many other companies.
Posts: 902
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Post by merlin on Oct 10, 2014 8:54:10 GMT
"There will no longer be a shadow bid facility, and the client money rules would prevent such a facility for the actual transfer of loan units as we can only deal with settled funds."
So Chris, what happens to my current Shadow Bids when the new system goes live?
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TFTO
Member of DD Central
Posts: 143
Likes: 71
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Post by TFTO on Oct 10, 2014 8:54:56 GMT
What about giving those of us who would rather not use AI the opportunity of bidding at the same time as the underwriter funds are called in? That would break the philosophy of the rest of the site. AI has been simplified but with loan part splitting, merging, and automated diversification truly manual bidding would be massively disadvantaged and complicated so no longer exists. The simplified AI is the new manual option. So without using AI does this not mean that I am limited to purchasing loan parts on the SM and then only from large loans because anything smaller has been snapped up by AI.
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Post by chris on Oct 10, 2014 8:55:51 GMT
"There will no longer be a shadow bid facility, and the client money rules would prevent such a facility for the actual transfer of loan units as we can only deal with settled funds."
So Chris, what happens to my current Shadow Bids when the new system goes live?
They'll be held in a list so you can see them and settle them but you won't be able to place more. There are no more auctions.
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merlin
Minor shareholder in Assetz and many other companies.
Posts: 902
Likes: 302
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Post by merlin on Oct 10, 2014 9:03:13 GMT
"There will no longer be a shadow bid facility, and the client money rules would prevent such a facility for the actual transfer of loan units as we can only deal with settled funds."
So Chris, what happens to my current Shadow Bids when the new system goes live?
They'll be held in a list so you can see them and settle them but you won't be able to place more. There are no more auctions. Chris How about letting us cancel out Shadow Bids? If Yes, How?
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Post by chris on Oct 10, 2014 9:05:38 GMT
That would break the philosophy of the rest of the site. AI has been simplified but with loan part splitting, merging, and automated diversification truly manual bidding would be massively disadvantaged and complicated so no longer exists. The simplified AI is the new manual option. So without using AI does this not mean that I am limited to purchasing loan parts on the SM and then only from large loans because anything smaller has been snapped up by AI. AI is the manual option on the new site. You'll tell the system how much you want to increase or decrease your holdings by and it'll do the rest. There won't be individual loan units for sale and much of the loan unit availability will be through the automated diversification rules available on the more automated investment options, where loan units are only listed for sale if there's something available to buy - as such most loan units won't ever hit the aftermarket, they'll be bought and sold automatically in milliseconds. Our belief is that fully manual bidders in the traditional sense would be at such a disadvantage in the face of our own automation tools and those of others as we start opening up our API, that it was better to remove manual bidding and simplify the existing AI than to maintain something that disadvantaged those using it. That way you can manually select where your funds are invested on a loan by loan basis but fit in with the automated nature of investment at the loan unit level.
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Post by chris on Oct 10, 2014 9:06:27 GMT
They'll be held in a list so you can see them and settle them but you won't be able to place more. There are no more auctions. Chris How about letting us cancel out Shadow Bids? If Yes, How? Talk to the customer care team, although all bids are binding commitments so there'd need to be a good reason for cancelling. You don't currently have the ability to cancel a shadow bid.
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merlin
Minor shareholder in Assetz and many other companies.
Posts: 902
Likes: 302
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Post by merlin on Oct 10, 2014 9:16:11 GMT
Chris How about letting us cancel out Shadow Bids? If Yes, How? Talk to the customer care team, although all bids are binding commitments so there'd need to be a good reason for cancelling. You don't currently have the ability to cancel a shadow bid. So after the new system goes live, how will we settle shadow bids?
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Post by chris on Oct 10, 2014 9:24:25 GMT
Talk to the customer care team, although all bids are binding commitments so there'd need to be a good reason for cancelling. You don't currently have the ability to cancel a shadow bid. So after the new system goes live, how will we settle shadow bids? As described there'll be an option against each shadow bid in the list.
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Post by pepperpot on Oct 10, 2014 9:40:55 GMT
chrisIf Old Grumpy has a £100 of loan x he would sell if loan y were available, and Old Greedy had £100 of loan y he would sell if loan x were available, would the system be able to spot that and do a straight swop and would there need to be a fresh cleared £100 seed to get the swop initiated? (Old Grumpy/Old Greedy - one in the same if you ask me!)
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