11025
Member of DD Central
Posts: 738 
Likes: 861
|
Post by 11025 on Oct 27, 2014 12:44:28 GMT
I have noticed this morning that my Staffordshire Property loan paid a small principal repayment back then purchased it back again immediately , due to the default investment target differing from the holding because of the repayment . How do you prevent this happening on loans with amortisation ?
thanks
|
|
|
|
Post by Ton ⓉⓞⓃ on Oct 27, 2014 12:48:00 GMT
I have noticed this morning that my Staffordshire Property loan paid a small principal repayment back then purchased it back again immediately , due to the default investment target differing from the holding because of the repayment . How do you prevent this happening on loans with amortisation ? thanks You ask a good question. I understand it's being looked into by chris. For the moment I'm considering whether to drop my target when I see a principle payment has come in. This is the only way round for the moment that I've heard, but some are saying they're happy with the system keeping them fully invested upto their target.
|
|
11025
Member of DD Central
Posts: 738
Likes: 861
|
Post by 11025 on Oct 27, 2014 12:50:32 GMT
cheers for the info
|
|
|
|
Post by chris on Oct 27, 2014 13:21:04 GMT
I have noticed this morning that my Staffordshire Property loan paid a small principal repayment back then purchased it back again immediately , due to the default investment target differing from the holding because of the repayment . How do you prevent this happening on loans with amortisation ? thanks You ask a good question. I understand it's being looked into by chris. For the moment I'm considering whether to drop my target when I see a principle payment has come in. This is the only way round for the moment that I've heard, but some are saying they're happy with the system keeping them fully invested upto their target. The rationale, as I understand it, is that you have chosen an appropriate level of investment in a given loan so as the loan principal reduces you're happy for your investment to be topped up. For those where that doesn't apply we'll be releasing a new feature shortly where manual investments can be frozen at their current level and the system won't adjust them until you unfreeze that loan. The back end for this is coded just waiting on the front end process to be finished and coded and then tested before we can launch probably on Tuesday or Wednesday.
|
|
gnasher
Member of DD Central
Posts: 207
Likes: 146
|
Post by gnasher on Oct 27, 2014 13:53:12 GMT
Chris, I hope you are going put a convenient flag against each loan, say on the detail tab, to say whether it is amortising or interest only & bullet. If we have to dive down into the repayment tab to refresh our minds on that one it could be a bit of a bind when deciding if we want to freeze our target or not.
|
|
|
|
Post by Ton ⓉⓞⓃ on Oct 27, 2014 14:00:52 GMT
Chris, I hope you are going put a convenient flag against each loan, say on the detail tab, to say whether it is amortising or interest only & bullet. If we have to dive down into the repayment tab to refresh our minds on that one it could be a bit of a bind when deciding if we want to freeze our target or not. I can't remember if this has already been discussed to death. But to my mind it should automatically be set for Lenders holdings in amortizing loans to amort with the loan as happens with every other loan in the normal world, but close by there should be this 'Top up my target' as principle is repaid option. Thanks to ramblin rose I've changed my mind and there are some loans I'm happy to top up as the loan amortizes, but not all.
|
|
ramblin rose
Member of DD Central
“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
Posts: 1,370
Likes: 857
|
Post by ramblin rose on Oct 27, 2014 14:24:37 GMT
Thanks to ramblin rose I've changed my mind and there are some loans I'm happy to top up as the loan amortizes, but not all. And at the point one of those goes bad, the 'rose' will miraculously turn into a 'scarlet pimpernel' and hide under a stone 
|
|
|
|
Post by chris on Oct 27, 2014 14:56:39 GMT
Chris, I hope you are going put a convenient flag against each loan, say on the detail tab, to say whether it is amortising or interest only & bullet. If we have to dive down into the repayment tab to refresh our minds on that one it could be a bit of a bind when deciding if we want to freeze our target or not. After a long internal discussion just now we're changing the way it works. I'll let you know more tomorrow as I have to shoot off now.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Oct 27, 2014 18:11:41 GMT
For the moment I'm considering whether to drop my target when I see a principle payment has come in. This is the only way round for the moment that I've heard, but some are saying they're happy with the system keeping them fully invested upto their target. 's suggestion works only for loans where there isn't a backlog of units for sale. For Staffordshire today, just two minutes elapsed between the time the principal payment was credited to my account and AutoInvest bought an equal amount to top up my holding. An alternative, I suppose, would be to pre-empt the situation and reduce your target for the loan before the principal payment is posted so that AutoInvest doesn't try to make a purchase on your behalf. To do that, though, you'd have to work out the size of your upcoming principal payment, but that would be a bit of a fiddle. Of course, this works only for loans with units for sale. Using it for loans that don't have units for sale would reduce your holding by more than you'd really want. For now, we probably ought to sit tight and wait for the new option to be released -- and then decide what to do.
|
|
mikeb
Posts: 1,072
Likes: 472
|
Post by mikeb on Oct 27, 2014 18:30:30 GMT
An alternative, I suppose, would be to pre-empt the situation and reduce your target for the loan before the principal payment is posted so that AutoInvest doesn't try to make a purchase on your behalf. My prediction is that :- MAI would immediately sell a small sliver of the loan (because now Holding > Target) at the point of your pre-empt. The principal payment would come in, taking your holding under target. MAI would immediately buy a small sliver because now Holding < Target) And then it would settle down.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Oct 28, 2014 4:12:50 GMT
An alternative, I suppose, would be to pre-empt the situation and reduce your target for the loan before the principal payment is posted so that AutoInvest doesn't try to make a purchase on your behalf. My prediction is that :- MAI would immediately sell a small sliver of the loan (because now Holding > Target) at the point of your pre-empt. The principal payment would come in, taking your holding under target. MAI would immediately buy a small sliver because now Holding < Target) And then it would settle down. That would be the ideal scenario. However, if the loan has lots of parts available to sell, your parts might not be sold very quickly. And if the loan doesn't have a lot of parts for sale, after the principal payment AutoInvest will be trying to buy parts for you but there might not be any available to buy. With a bit of patience, though, it ought to work -- eventually.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Oct 29, 2014 12:16:46 GMT
I received a capital repayment at 0827 today from the Op***** L*** M loan (#57). My target holding was set to match my actual holding before that payment was credited. Immediately after the credit I bought parts representing 88% of that amount (also timed at 0827), and a minute later (0828) I bought a further 12% of the credit amount to restore my holding to the target level.
I didn't notice any parts of this loan being for sale last night. Did anyone notice whether there were some for sale this morning? I suppose there must have been in order for me to have made a purchase, as I don't know of any way that the capital repayment could have triggered a sale by someone else. Am I missing something?
PS. I should clarify the above by saying that when I wrote "I bought" what I really meant was that "AutoInvest bought for me".
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Oct 29, 2014 12:21:59 GMT
I don't think we see loan parts for sale unless the amount put up exceeds the overall targets set by investors. Re-allocation by Mr Alan Gorhythm is almost instantaneous. I also was "topped up" on Optical this morning.
|
|
ianb
Posts: 161
Likes: 54
|
Post by ianb on Oct 29, 2014 13:33:55 GMT
I received a capital repayment at 0827 today from the Op***** L*** M loan (#57). My target holding was set to match my actual holding before that payment was credited. Immediately after the credit I bought parts representing 88% of that amount (also timed at 0827), and a minute later (0828) I bought a further 12% of the credit amount to restore my holding to the target level. I didn't notice any parts of this loan being for sale last night. Did anyone notice whether there were some for sale this morning? I suppose there must have been in order for me to have made a purchase, as I don't know of any way that the capital repayment could have triggered a sale by someone else. Am I missing something? PS. I should clarify the above by saying that when I wrote "I bought" what I really meant was that "AutoInvest bought for me".
Yup there was a chunk of that one for sale a around 9.30 - think about 5K, some of which I gratefully snapped up.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Oct 29, 2014 16:43:40 GMT
I don't think we see loan parts for sale unless the amount put up exceeds the overall targets set by investors. Re-allocation by Mr Alan Gorhythm is almost instantaneous. I also was "topped up" on Optical this morning. : I'm not sure I follow. The capital repayment should not trigger any automatic selling instructions on its own. So for me to have bought some parts as soon as the capital repayment arrived I think means that there must have been some for sale before the credits arrived. And if I had set a target above my current holding but didn't have any cash available in my account, surely the system isn't going to 'reserve' parts for me in the expectation that I'll have some cash some day to buy them with and thus prevent someone else with available cash but who hadn't set their target above their holding yet to see that there were some parts available and decide to adjust their target so as to buy them. Having sold some parts recently, the sequence of events I observed by repeatedly refreshing my screen seemed to be... - I start with a loan that has no parts available for sale.
- I reduce my target to £XX below my current holding.
- [Automatic refresh in response to my change]
- The system shows my new target and my current holding
- The system reports my new target and my current holding, and also that there is £XX "of available investment capacity in this loan".
- The system reports my current holding now matches my new target, that
there is £0.00 available investment capacity, and also that I now have
£XX more uninvested cash in my MLIA.
The last display may occur pretty quickly if there are other lenders eager to by the parts I have offered, or it might take some time if there isn't much demand for what I'm selling. At Step 6, however, I doubt that I'm the only one who can see that there is £XX of this loan up for sale. Auto Invest then springs into action and distributes that £XX of parts among those wanting to buy. I expect it does that so quickly that nobody else would have a chance of changing their target for that loan so as to acquire some of the offered units for themselves before AI had dealt with this. For all I know, the database could be locked while AI does its job to prevent interference from other lenders. I can see an argument that if AI knows there are enough lenders with cash available in their accounts who want the parts being offered, then if the momentary availability of the parts wasn't advertised it might save some frustration on the part of other lenders who haven't already set their targets to acquire more of this loan. However, because the availability of the parts is so fleeting, the chance of anyone seeing it is pretty slim so why bother trying to complicate the programming to hide something that's going to disappear on its own in just a few seconds?
|
|
