jonno
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nil satis nisi optimum
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Post by jonno on Oct 24, 2014 11:41:09 GMT
I have to say, it's not the first time i've heard the words "boycott" and "the French" in the same sentance.  |
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ianj
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Post by ianj on Oct 24, 2014 11:49:55 GMT
No doubt we will be reading your observations on the various forums still. It's good to have a bit of rhubarb from Yorkshire in the crumble! 
Don't worry OG, we've been trying to rid ourselves of those pesky types from the wrong side of the Pennines for hundreds of years, but there's no getting rid of them - I'm sure he'll still be around Yorkshiremen never were backward in coming forward. " Never ask a man if he comes from Yorkshire. If he does, he will tell you. If he does not, why humiliate him?" ........Canon Sydney Smith
.......discuss.
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Post by yorkshireman on Oct 24, 2014 11:57:27 GMT
Don't worry OG, we've been trying to rid ourselves of those pesky types from the wrong side of the Pennines for hundreds of years, but there's no getting rid of them - I'm sure he'll still be around Yorkshiremen never were backward in coming forward. " Never ask a man if he comes from Yorkshire. If he does, he will tell you. If he does not, why humiliate him?" ........Canon Sydney Smith
.......discuss. To take that further: You can always tell a Yorkshireman but you can’t tell him much and the old Yorkshire toast, “here’s to me and my wife’s husband!”
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jjc
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Post by jjc on Oct 27, 2014 11:54:47 GMT
I voted good. Am generally a big supporter of the AC team & what they at least seem to be trying to do, on that count they may (let’s see how things develop…) merit a “Very Good”. Due to the early glitches on the new platform I couldn’t honestly give them more than a “Good” – it would have been an “OK” for how it was done (mandate management, info prior to & guide etc could definitely have been better) mitigated by probably a “V Good” for the quick & laudable reaction & fixes from the AC IT team. My personal take on the launch – AC knew there were going to be things to iron out & went for it “gung-ho” confident these could be sorted quickly without major money risks to, & yes – from my perspective at least – it seems to have worked. So well done.
That all said… my real concerns relate to the deal flow from AC.
Since Sep we’ve had – if we exclude the wind loans which I for personal reasons participate to a small/no degree in many cases (btw not because I don’t think they’re good) - 5 loans draw down in Sep & just 1 (Essex BL) in Oct. The 5 Sep ones were auctions dating back from the hazy distant past of either June or July, so really we’ve only had 1 loan quick to offer to lenders & draw down. Is that a good record?
In the meantime, there have been if memory serves me right at least 6 loans which either died a death before they even got started (London software, Herts BL, Scottish leisure park, Redruth dvpt, the boaty & E. Midlands), another pulled destination unknown (W-s-Mare) & one that did get going doing so at a reduced balance. Grand Total 8 that either partly or totally vanished into thin air…
It may be that AC have had some “bad luck” on a couple or so of these deals, & we all know that loan origination is not the simplest of activities, one would imagine even less so for “quality suppliers” with proper security to set up & & professional duedil of loans such as AC. Granted, & that’s why AC can still count on my support.
But that doesn’t cover the fact that deal flow has been …. sorry… very very very poor. I may be (hope not) in a minority on this forum ie a lender looking to increase – perhaps significantly – my lending on the AC platform. I’m sure I’m not in a minority in the grander scheme of P2P/AltFi lending – there’s lots of money pouring in & new lending records are being set almost on a monthly basis…
So as a lender I do hope AC will take note that it has NOT been easy to increase our lending on AC (even for us strong AC “supporters”), they are missing out on my & many other lenders funds, & now they have the shiny new Rolls Royce (with a Ferrari engine under the bonnet imo) platform up & roaring to go… if something isn’t put right quickly on the deal flow our good friends up in Mancs will have failed to cash in on a lot of hard work. A real shame..
I’ll wish them good luck. But sort it out guys.
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mikes1531
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Post by mikes1531 on Oct 27, 2014 17:51:10 GMT
I voted good. Am generally a big supporter of the AC team & what they at least seem to be trying to do, on that count they may (let’s see how things develop…) merit a “Very Good”. The poll question was "How was the launch?". As such, IMHO it's not appropriate to change a vote based on "let’s see how things develop". There were quite a few bugs that showed up, and that why I thought the launch went very badly. The fact that the bugs still are being squashed a week later is an indication of how bad some of the bugs are/were. Perhaps what we need now is another poll, asking what people think of the new website/system. I'd be happy to respond to such a poll with a more positive vote, and I see no reason why it wouldn't be appropriate for people to change their votes as things develop and bugs are eliminated and the new Customer Experience person -- or whatever they're called -- suggests changes in response to requests made here and their own expertise.
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oldgrumpy
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Post by oldgrumpy on Oct 30, 2014 15:46:58 GMT
I've decided. It was a huge change which had to be migrated to, and I thoroughly disagreed with some of them (which are now being looked into) but the vote is about the launch of what AC had decided, and it is taking quite a long time to iron out the many problems of their own making which followed, so I vote: OK rather than good.
A lot of the actual site I like - it just needs to be learnt.
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Post by lynnanthony on Oct 31, 2014 5:12:54 GMT
But that doesn’t cover the fact that deal flow has been …. sorry… very very very poor. I may be (hope not) in a minority on this forum ie a lender looking to increase – perhaps significantly – my lending on the AC platform. I’m sure I’m not in a minority in the grander scheme of P2P/AltFi lending – there’s lots of money pouring in & new lending records are being set almost on a monthly basis… I agree with your post, especially the above point. I have been wanting to significantly increase my lending on Assetz for some time, while staying within my self imposed rules of diversification and no-not-for-me detection, but I am failing even to re-invest the late payers I've managed to sell off (another of my self imposed "rules"). As they say on Thincats, "Need more cheese."
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pikestaff
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Post by pikestaff on Oct 31, 2014 7:30:27 GMT
I agree deal flow has not been great. I suspect that's down to a combination of quality control and limited underwriting capacity. I have seen no evidence that AC could, at its present stage of evolution, fund a great many more deals - unless they were small. Because AC's quality control must cost much the same regardless of deal size, small deals are unlikely to be profitable for the platform.
I'm hoping the new site will attract more lenders, and enable underwriters to recycle their funds quicker. That should bring the deal flow we need.
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mikes1531
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Post by mikes1531 on Oct 31, 2014 13:21:50 GMT
I agree deal flow has not been great. I suspect that's down to a combination of quality control and limited underwriting capacity. I have seen no evidence that AC could, at its present stage of evolution, fund a great many more deals - unless they were small. Because AC's quality control must cost much the same regardless of deal size, small deals are unlikely to be profitable for the platform. I'm hoping the new site will attract more lenders, and enable underwriters to recycle their funds quicker. That should bring the deal flow we need. If AC ever do manage to sort out the four big overdue bridging loans, that would return something like £7M to lenders. No doubt some of that will leave AC because some investors will have been disillusioned by the experience or need the money for other things, but I expect that a lot of it will be recycled into AC's currently available loans. That would free up a lot of underwriting capacity and allow AC to progress.
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Post by lynnanthony on Nov 1, 2014 5:06:08 GMT
I agree deal flow has not been great. I suspect that's down to a combination of quality control and limited underwriting capacity. I have seen no evidence that AC could, at its present stage of evolution, fund a great many more deals - unless they were small. Because AC's quality control must cost much the same regardless of deal size, small deals are unlikely to be profitable for the platform. I'm hoping the new site will attract more lenders, and enable underwriters to recycle their funds quicker. That should bring the deal flow we need. If AC ever do manage to sort out the four big overdue bridging loans, that would return something like £7M to lenders. No doubt some of that will leave AC because some investors will have been disillusioned by the experience or need the money for other things, but I expect that a lot of it will be recycled into AC's currently available loans. That would free up a lot of underwriting capacity and allow AC to progress. Does anyone really have cause to be disillusioned by the bridging loans referred to? Though there is now a glut on the market they were all readily saleable up until recently. Anyone still in them either bought them recently, made a decision to stay for the ride (and the 18%), or hasn't been paying attention.
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pikestaff
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Post by pikestaff on Nov 1, 2014 7:32:06 GMT
If AC ever do manage to sort out the four big overdue bridging loans, that would return something like £7M to lenders. No doubt some of that will leave AC because some investors will have been disillusioned by the experience or need the money for other things, but I expect that a lot of it will be recycled into AC's currently available loans. That would free up a lot of underwriting capacity and allow AC to progress. Does anyone really have cause to be disillusioned by the bridging loans referred to? Though there is now a glut on the market they were all readily saleable up until recently. Anyone still in them either bought them recently, made a decision to stay for the ride (and the 18%), or hasn't been paying attention. Not me. There's a bridging loan lender on TC which disclosed that 70% of their loans are not repaid on time and attract default interest. Late settlement is par for the course. Having said that, I am not keen on the bridging loan craze. Too risky when the market turns.
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mikes1531
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Post by mikes1531 on Nov 2, 2014 22:12:11 GMT
Does anyone really have cause to be disillusioned by the bridging loans referred to? Though there is now a glut on the market they were all readily saleable up until recently. Anyone still in them either bought them recently, made a decision to stay for the ride (and the 18%), or hasn't been paying attention. Not me. There's a bridging loan lender on TC which disclosed that 70% of their loans are not repaid on time and attract default interest. Late settlement is par for the course. Having said that, I am not keen on the bridging loan craze. Too risky when the market turns. Count me as one of the disillusioned. When I started participating in bridging loans, I'll admit I knew very little about the chance that bridging loans wouldn't be repaid on time. Since AC never suggested it was highly likely -- or even moderately likely -- I get the feeling that they've been surprised as well, so I don't feel it was just me being naive. I thought that defaults would turn into security sales reasonably quickly and that the whole recovery process might take six months or so. So I wasn't too concerned when these loans first defaulted, but I kept thinking that the borrowers would manage to arrange the refinancing that they said they were working on and things would be wrapped up reasonably promptly. But now we're a lot further overdue and there seems to have been very little progress made. We seem to be heading for the appointment of lots of receivers -- eventually -- and since my six-month clock won't start until those appointments it's looking like these 6-month loans are turning into 15-18 month commitments. I can cope with that, but it is a bit disillusioning. I now know better what to expect from bridging loans so I'll be better prepared for the next round of them -- if there is one.
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oldgrumpy
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Post by oldgrumpy on Nov 2, 2014 22:29:55 GMT
I don't suppose AC will have the gall to offer bridging loans again where no interest is actually paid until final bullet repayment is settled. if they do they will get .....no interest!  |
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mikes1531
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Post by mikes1531 on Nov 2, 2014 22:57:08 GMT
I don't suppose AC will have the gall to offer bridging loans again where no interest is actually paid until final bullet repayment is settled. if they do they will get .....no interest! I didn't realise there had been many of those. Or is oldgrumpy referring to 'development' loans?
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Post by Ton ⓉⓞⓃ on Nov 2, 2014 23:57:38 GMT
I don't suppose AC will have the gall to offer bridging loans again where no interest is actually paid until final bullet repayment is settled. if they do they will get .....no interest! I didn't realise there had been many of those. Or is oldgrumpy referring to 'development' loans? I think OG maybe referring to that fact they're mainly or wholly 'retained interest' For the Borrower it can be simpler and cheaper to default rather than get the refinance perhaps someone can work out where the break even point is for the Borrower? I asked AC or AH your question about how often do bridges default the answer that came back was simply 'often' I would've guessed that half would default perhaps three quarters but not all of them (so far).
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