Various Loan Updates (Assetz Capital)

Id queried why #271 had drawndown on 23/5 but no GBBA/MLIA accounts had been allocated any loan units (as evidenced by the posts on this thread and the fact that QAA queue hadnt moved for 24hrs in relation to swept funds from GBBA/MLIA). Was there a problem or had it all been taken by QAA?

Ive now had a full reply by email - apparently because I referenced multiple accounts outside of my own that made it speculative and against rules. There was apparently no issue because my account bought loan parts 3hrs after the question was posted and 24hrs after drawdown.

For the benefit of all the others who are confused by events here is the full explanation.

 'Something which may not be apparent on the platform¹ is that after drawdown has occurred there are potentially thousands of buying instructions to service for any particular loan, in addition to the buy and sell instructions for the loan book as a whole, both via the MLIA and all the other Investment Accounts² . As such, it is not uncommon for there to be a delay between drawdown and lenders buying instructions being acted upon. This was the case with the #271 loan. As it is impossible to forecast the actual level of activity on the platform and thus demand on the computer systems at the drawdown of a loan, we would suggest delaying posting questions of this nature for at least 3-4 hours (or overnight if drawdown takes place late in the day) after drawdown so as to avoid premature and ultimately redundant questions being raised'

So it seems that whereas before drawdown and allocation have happened in a short timeframe, this would appear to be no longer the case. So Dont Panic. Wait patiently, and meanwhile why not occupy yourself reading the duplicate answers to the duplicate questions on at least 8 loans on GBBA eligibility Or in the case of oldgrumpy have a banana!

¹ Might be if someone ever writes a FAQ, guide, how it works to inform lenders, otherwise you are reliant on lenders experience, in this case outside that, and interpretation.
² At a minimum 6793.478261

Drawdown and allocation are discrete events.  Allocation can be set up prior to drawdown, and / or compulsory sale of underwriter loan units can occur, but that doesn't have to happen.  There was a recent change to the way loan units are released on most loans so that instead of there being a large amount offered on day one they are fed into the market over time - the idea being to smooth availability and peaks and troughs in the amount available on the market.

I'm assured there are several loans due to draw before the end of the month, totalling perhaps £3m, and that there will be plenty coming through next month.  Currently there are 13 loans flagged in the system for draw down this month, on top of the 10 that have already drawn, although I'd personally be pleasantly surprised if all of them do. This has also been a record month for new loan offers being made which will feed through in 2 - 3 months time.

"There was a recent change to the way loan units are released on most loans so that instead of there being a large amount offered on day one they are fed into the market over time...."

That is all very well from AC's point of view, but we as lenders have to ensure sufficient funds for the whole of our request are in our account and available for drawdown date, yet AC reduces our allocation (fairly, because many lenders ask for some) then reduces it again*, it seems, to "smooth availability blah blah etc..." so now we don't have any clue what to place in our accounts.

Highly unhelpful, in my opinion.

edit: * and with allocations of £20+ now being made (admittedly on a "small" £100K+ loan) there is little point in most of us keeping cash ready on the platform.

I'm pleased that £3m of loans are due for drawdown before the end of the month. About £517K is in one funded loan and the other funded loan has already been put back several times (now 3 June) so that doesn't count. That leaves nearly £2.5M of underwriters' money which will need to be called and collected in six days between now and 31 May (and 30 May is a bank holiday). Thank goodness Chris has such an optimistic outlook on those given figures/dates. We'll see.

By how much will this £3M be held back from lenders to smooth the peaks and troughs of the market?

Edit ...  oops, a £520K one has just had u/w funds called and drawdown for Friday , only 8% though but still better than parking too much in QAA or 30DAA.

The underwriters are no more. All loans are now funded via the QAA which is easy to call and collect from.

Ah! Then I suggest that AC stops plastering the words "underwriting called" on all the upcoming loans.