oldgrumpy
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Post by oldgrumpy on Oct 10, 2014 10:17:12 GMT
(Old Grumpy/Old Greedy - one in the same if you ask me!)
I never eat more than six bananas in a day! 
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Oct 10, 2014 10:36:06 GMT
(Old Grumpy/Old Greedy - one in the same if you ask me!)
I never eat more than six bananas in a day!
Explains why your grumpy! Low energy, not enough potassium! 
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Oct 10, 2014 10:38:01 GMT
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. Have you asked lenders if they want manual bidding abolished ? I suspect it would be a resounding NO.
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Post by Ton ⓉⓞⓃ on Oct 10, 2014 10:54:59 GMT
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. Have you asked lenders if they want manual bidding abolished ? I suspect it would be a resounding NO. So there's gonna be a 'pipeline' where we can see proposals gradually forming into loans, we can buy in when they emerge using the new system which is an upgrade from AI. AI will still be there it will in effect be the new manual way of buying loans as manual bidding is going. When proposals are in the pipeline reports like Valuation, Experian ratings, Forecasts, Accounts will be uploaded as they become available. Also you might be able to tune your AD (Automatic Diversifier, perhaps AI?) to buy that Loan when it emerges. I think AC is still looking to hit 100M by April '15, the above might just make it possible.
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Post by pepperpot on Oct 10, 2014 10:56:21 GMT
Have you asked lenders if they want manual bidding abolished ? I suspect it would be a resounding NO. If the new AI works as intimated, I'm willing to go with it. It will all depend on the fairness of allocation of small attractive loans though. If new loans are going to effectively be in 'preview' until drawdown there should be enough time (months in some cases) for people to do DD and set AI so they don't miss out completely.
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Post by pepperpot on Oct 10, 2014 10:58:35 GMT
(Old Grumpy/Old Greedy - one in the same if you ask me!)
I never eat more than six bananas in a day!
I look you've got one hanging out your mouth!
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Oct 10, 2014 11:05:50 GMT
(Old Grumpy/Old Greedy - one in the same if you ask me!)
I never eat more than six bananas in a day!
I look you've got one hanging out your mouth! Could the mods retitle this thread State of the gorilla - oldgrumpy diet! 
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Oct 10, 2014 11:07:28 GMT
I deny everything!! 
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Post by Jack Barlow on Oct 10, 2014 11:12:53 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. . The limit on the PGs arranged by, for example, ThinCats refers to capital outstanding and their small print allows outstanding interest and recovery fees to be added on top of that. Are you saying that the limit set on your PGs applies to the total capital+interest+fees outstanding, not the capital?
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niceguy37
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Post by niceguy37 on Oct 10, 2014 11:25:30 GMT
The South Manchester repayment, plus the State of the Nation address, have certainly put some liquidity and movement into the Secondary Market. Things are looking up!
Probably just in time, with the new website imminent, and there are always some people who don't like change and vote with their feet.
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hendragon
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Post by hendragon on Oct 10, 2014 11:32:48 GMT
The most attractive loan in my portfolio (46ccp) was obtained by bidding at the very start of the auction. If the AC auto system means this type of small popular loan would be shared around, and quite frankly I would probably have a much smaller stake. This does not mean I would use returned funds on other, less attractive loans. It means I would simply invest less. If you take a look at the AM at the moment there are a number of loans that seem to be stuck there. Unless the pipeline contains loans that are perceived to be of equal return and risk, this simply creates another problem.
Should there be a small loan that is more or less certain to be oversubscribed the temptation will be to use the system to ask for far more than you want (ala royal mail ipo). Trying to make an investment and being unsure of how much of your intended stake you might get reduces the attactiveness of AC in relation to several other platforms. If AC is going to do this what not go down a Wellesley style route?
What is true for myself as an investor may not be true for other, or the majority, of AC investors. The only upshot of this for myself is likely to be a reduced holding in AC. Whether this inceases it overall AC investor base remains to be seen.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Oct 10, 2014 11:43:48 GMT
Have you asked lenders if they want manual bidding abolished ? I suspect it would be a resounding NO. If the new AI works as intimated, I'm willing to go with it. It will all depend on the fairness of allocation of small attractive loans though. If new loans are going to effectively be in 'preview' until drawdown there should be enough time (months in some cases) for people to do DD and set AI so they don't miss out completely. OK, I'm not saying that AI options should not be enhanced. I just don't see the need to abolish manual bidding. How will a non-manual system allow you to see the no. of discounted units, seller id and allow you to review a purchase before committing ? EDIT: Sorry I''ve mixed up the terminology. It's the abolition of manual process of buying units on the aftermarket that concerns me.
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bugs4me
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Post by bugs4me on Oct 10, 2014 12:02:43 GMT
If the new AI works as intimated, I'm willing to go with it. It will all depend on the fairness of allocation of small attractive loans though. If new loans are going to effectively be in 'preview' until drawdown there should be enough time (months in some cases) for people to do DD and set AI so they don't miss out completely. OK, I'm not saying that AI options should not be enhanced. I just don't see the need to abolish manual bidding. How will a non-manual system allow you to see the no. of discounted units, seller id and allow you to review a purchase before committing ? EDIT: Sorry I''ve mixed up the terminology. It's the abolition of manual process of buying units on the aftermarket that concerns me. If manual buying is abolished in the AM then there will be no point in offering a discount (albeit a smallish one) to promote the sale. Hopefully it won't come to that. Guess we're in a wait and see mode.
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oldgrumpy
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Post by oldgrumpy on Oct 10, 2014 12:16:02 GMT
Buggsy -when I try to buy a set amount manually, the system selects units with a discount. I confirm. When I put stuff for sale I put a discount (however small) to go "front of the queue" and sell quite quickly even if 4999 units were up before me. Now, the questions for chris : If my AI says "buy £100 of Boyo Recycling(Cardiff)", will AI automatically buy the unit with the best discount? Will the new site show all discounts available so we can decide (a) what buying instruction to give our AI and (b) what discount to apply to our own sale units? Or should I wait and see? edit: If Buggsy likes me, and wants to sell me his units of Boyo etc for 20% discount, will that be possible with no manual purchasing?  |
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niceguy37
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Post by niceguy37 on Oct 10, 2014 12:18:36 GMT
Wait and see it definitely is!
Perhaps we'll be able to up the new AI such that it buys a given loan only if there is a set discount. I'm afraid we'll just have to see how clever and how effective it is at buying the loans we want, or finding sellers for our discards.
I guess AC are trying to gear up for the hopeful flood of Nisa investors, and to do away with the major aggravation of drawdown delays. Both commendable goals.
As with any new system there are bound to be a few teething problems, and then a few opportunities for refining and improving things.
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