mikes1531
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Post by mikes1531 on Nov 5, 2014 19:25:18 GMT
This system would enable lenders to set their targets once for each loan, and would automatically trade loan parts that we want less of for those we favour more highly if they become available. The principle sounds good, but I don't know how practical it would be to implement. The loans on the 'I want more' list are going to be those where there's nothing available on the Aftermarket at the moment, since if there were we'd buy them then and there. As soon as someone offers parts in one of those loans, they appear on the Aftermarket and now they'd be snapped up immediately by those who want more and have idle cash available. To implement niceguy37's idea, the system would have to prevent that buying, put some of the parts in the loans on the 'happy to dispose of' list up for sale and wait for some sales to occur before dealing with the initial sales request. This could take some time if the 'happy to dispose of' loans happened to already have units available on the Aftermarket and therefore nobody queued up to buy them as soon as they're offered. I can see a number of investors who might be unhappy about this... - The one who put the units up for sale in the first place, because they'd have to wait for the sale to occur.
- The ones who see units they want on offer and see their available cash not being used to buy them.
I also can visualise a 'gridlock' scenario where people who want Loan A units are waiting for their Loan B units to sell, and people who want Loan B units are waiting for their Loan A units to sell -- or various more complicated situations. If a short time limit could be imposed on waiting for sales -- say a minute or two -- that might be enough to make it work.
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kermie
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Post by kermie on Nov 5, 2014 19:41:41 GMT
Mike said: I also can visualise a 'gridlock' scenario where people who want Loan A units are waiting for their Loan B units to sell, and people who want Loan B units are waiting for their Loan A units to sell -- or various more complicated situations. -- Of course, what you describe is a perfect example of how the automated system could help make such "swaps" possible that would otherwise not happen presently. My memory may be playing up, but I think I recall chris suggesting that this was the sort of thing the soon-to-come automated diversification would cope with. It is not hard to identify such potential matches algorithmically (just need to be careful you don't just stuck in an infinite loop!). In practice I am not convinced there would be a huge amount of "swaps" - but if the lender base grows significantly, that could change.
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Post by pepperpot on Nov 5, 2014 19:58:18 GMT
Mike said: I also can visualise a 'gridlock' scenario where people who want Loan A units are waiting for their Loan B units to sell, and people who want Loan B units are waiting for their Loan A units to sell -- or various more complicated situations. -- Of course, what you describe is a perfect example of how the automated system could help make such "swaps" possible that would otherwise not happen presently. My memory may be playing up, but I think I recall chris suggesting that this was the sort of thing the soon-to-come automated diversification would cope with. It is not hard to identify such potential matches algorithmically (just need to be careful you don't just stuck in an infinite loop!). In practice I am not convinced there would be a huge amount of "swaps" - but if the lender base grows significantly, that could change. I'm hoping the possibility will emerge in Phase 2 or 3 as your right he did confirm it here, albeit briefly. Or maybe it will be a feature of the automated accounts and not part of the MIA.
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bigfoot12
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Post by bigfoot12 on Nov 5, 2014 20:00:38 GMT
I can see the scenario where a new member comes along and drops £5k into his/her automatic account. The system would buy the 8-10 loans on the market at that time. Another new member joins six months later and does something similar, but by then the 8-10 loans available are mostly different. They would both be happy to swap half their positions.
Obviously in reality it is likely to be a more gradual process, but I think it might be significant.
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Post by chris on Nov 5, 2014 20:02:50 GMT
Mike said: I also can visualise a 'gridlock' scenario where people who want Loan A units are waiting for their Loan B units to sell, and people who want Loan B units are waiting for their Loan A units to sell -- or various more complicated situations. -- Of course, what you describe is a perfect example of how the automated system could help make such "swaps" possible that would otherwise not happen presently. My memory may be playing up, but I think I recall chris suggesting that this was the sort of thing the soon-to-come automated diversification would cope with. It is not hard to identify such potential matches algorithmically (just need to be careful you don't just stuck in an infinite loop!). In practice I am not convinced there would be a huge amount of "swaps" - but if the lender base grows significantly, that could change. I'm hoping the possibility will emerge in Phase 2 or 3 as your right he did confirm it here, albeit briefly. Or maybe it will be a feature of the automated accounts and not part of the MIA. The system can do this and it will be part of the products launched in phases 2 and 3, but whilst technically it could be applied to manual investments I'm going to shy away from that for the foreseeable future. But once all these systems are live I'm open to working with you on an opt-in solution.
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niceguy37
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Post by niceguy37 on Nov 13, 2014 9:33:12 GMT
Please could you add the repayment type to the loan page i.e. Interest Only / Repayment / Repayment 20 year amortisation?
Also the current status: On Time / x days overdue / Repaid.
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surby
Minor shareholder in Assetz Capital
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Post by surby on Nov 13, 2014 15:20:20 GMT
I can see the scenario where a new member comes along and drops £5k into his/her automatic account. The system would buy the 8-10 loans on the market at that time. Another new member joins six months later and does something similar, but by then the 8-10 loans available are mostly different. They would both be happy to swap half their positions. Obviously in reality it is likely to be a more gradual process, but I think it might be significant. One feature that I would like, and which could help all manual investors (as I guess we will become known) would be an indication of the total demand for loans that don't currently have units available. That could provide a pointer to anyone wanting to raise a bit of cash and could also be useful information for someone wanting to set, or review a target for such loans.
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niceguy37
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Post by niceguy37 on Nov 13, 2014 15:48:17 GMT
I can see the scenario where a new member comes along and drops £5k into his/her automatic account. The system would buy the 8-10 loans on the market at that time. Another new member joins six months later and does something similar, but by then the 8-10 loans available are mostly different. They would both be happy to swap half their positions. Obviously in reality it is likely to be a more gradual process, but I think it might be significant. One feature that I would like, and which could help all manual investors (as I guess we will become known) would be an indication of the total demand for loans that don't currently have units available. That could provide a pointer to anyone wanting to raise a bit of cash and could also be useful information for someone wanting to set, or review a target for such loans. It will be an interesting stat to have, but it may create a bit of a herd mentality.
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mikes1531
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Post by mikes1531 on Nov 13, 2014 20:11:24 GMT
One feature that I would like, and which could help all manual investors (as I guess we will become known) would be an indication of the total demand for loans that don't currently have units available. That could provide a pointer to anyone wanting to raise a bit of cash and could also be useful information for someone wanting to set, or review a target for such loans. It will be an interesting stat to have, but it may create a bit of a herd mentality. Possibly, but I'd like to have that info at least until it's proven to cause a problem. If I have an amount that I wish to invest that I'd like to spread around a number of loans, at the moment I have to avoid setting targets that are more than a few pounds above my current holdings in order to avoid the situation where someone decides to sell a lump of some loan and I'm the only one who's interested so the system puts all my available cash toward that one loan rather than it being spread as I'd like. As a result, I end up having to adjust my targets quite frequently. If I knew that there were tens of lenders interested in a particular loan I could set a high target for that loan and probably not have to worry about picking up more than a few pounds of that loan at any one time. Perhaps I'm overworking the problem, but I'd like to have the info to enable me to try. It also would help me choose which loans to offer for sale if I wish to raise money, as noted above by surby.
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bigfoot12
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Post by bigfoot12 on Nov 13, 2014 21:33:29 GMT
It will be an interesting stat to have, but it may create a bit of a herd mentality. Possibly, but I'd like to have that info at least until it's proven to cause a problem. ... all my available cash toward that one loan rather than it being spread as I'd like. ...I could set a high target for that loan and probably not have to worry about picking up more than a few pounds of that loan at any one time. Perhaps I'm overworking the problem, but I'd like to have the info to enable me to try. You are saying that for these loans you would bid for more than you really want because there is demand. Others will do the same, and the apparent demand will be much higher than the real demand. I would like the information nonetheless.
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Post by pepperpot on Nov 13, 2014 21:58:01 GMT
Possibly, but I'd like to have that info at least until it's proven to cause a problem. ... all my available cash toward that one loan rather than it being spread as I'd like. ...I could set a high target for that loan and probably not have to worry about picking up more than a few pounds of that loan at any one time. Perhaps I'm overworking the problem, but I'd like to have the info to enable me to try. You are saying that for these loans you would bid for more than you really want because there is demand. Others will do the same, and the apparent demand will be much higher than the real demand. I would like the information nonetheless. Yeah, me three. I was about to respond earlier to Mr Nice 37, that it would create inflated demand for popular loans which would then never hit the market and everything else would just sit there waiting for new blood to join up to have a nibble at. But then realised that is exactly what we have now! My targets for small attractive loans are set to mild over-exposure and everything that is available in abundance is set to mild under-exposure. So more info might not make much of a difference.
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mikes1531
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Post by mikes1531 on Nov 13, 2014 22:30:01 GMT
Possibly, but I'd like to have that info at least until it's proven to cause a problem. ... all my available cash toward that one loan rather than it being spread as I'd like. ...I could set a high target for that loan and probably not have to worry about picking up more than a few pounds of that loan at any one time. Perhaps I'm overworking the problem, but I'd like to have the info to enable me to try. You are saying that for these loans you would bid for more than you really want because there is demand. Others will do the same, and the apparent demand will be much higher than the real demand. I would like the information nonetheless. No, that's not quite what I'm saying. I'm more interested in the number of lenders wanting to acquire a given loan than the amount they say they're trying to buy. Example: Say I do want to increase my holdings in ten loans all by £100 each, but I don't have £1000 right now. So I put £100 in and wait for it to be used before either adding more or finding my account topped up by repayments coming in. But I don't really want to pick up £100 of one loan all at once, since that would stop me from picking up bits of the other nine loans if they were to become available. So I set all my targets at £10 above my holding and adjust them every time I make a purchase. If I knew that some of these loans were very popular and there were many lenders who also want to buy parts, then I could be more confident that I wouldn't pick up a large amount all at once, and I could set my target for that loan £100 above my current holding and not have to adjust it so frequently. As I said before, perhaps I'm overworking the problem.
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niceguy37
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Post by niceguy37 on Nov 14, 2014 12:05:27 GMT
I have the same problem.
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Post by solicitorious on Nov 16, 2014 17:07:46 GMT
My 2p
i) Can we get rid of the silly "three-bars" thingy on the MLIA on the dashboard "Options/Your transactions" and replace it with a direct button? There's plenty of space to put one there - e.g. to the left, under the MLIA title.
ii) sortable columns in the loan lists
iii) information bubbles with explanations of totals on the dashboard. e.g. What exactly is "current accrued interest"? Since when? "Accrued" but not yet paid? A different figure is on the current tax statement. The total interest is the sum of these figures, I take it?
iv) a loan was pulled from Your Bids in the past two days. No explanation of whether it had been drawn-down (as I thought) or cancelled (as it turned out). I couldn't even remember the name other than there was one missing. Only a phone call elicited an explanation. It just "vanished"...Would have been more sensible to leave it on Your Bids (at least for a while) with some message or explanation. The money I had invested did magically get transferred to my cash account, again with no explanation, or seemingly an audit trail... Unsatisfactory!
v) insert some column in the cash/MLIA statments identifying the type of transaction, ideally filterable within the AC screen, but at least there to allow filtering within Excel,etc. It's impossible to keep track of anything otherwise. Unsure where my interest are supposed to appear. Got some in the Cash statement, some in the MLIA statement. Flummoxed...
vi) Loans under "Not invested" are also appearing under "Invested". Confusing, but a minor point, I suppose...
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oldgrumpy
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Post by oldgrumpy on Nov 16, 2014 17:30:23 GMT
"iv) a loan was pulled from Your Bids in the past two days. No explanation of whether it had been drawn-down (as I thought) or cancelled (as it turned out). I couldn't even remember the name other than there was one missing. Only a phone call elicited an explanation. It just "vanished"...Would have been more sensible to leave it on Your Bids (at least for a while) with some message or explanation. The money I had invested did magically get transferred to my cash account, again with no explanation, or seemingly an audit trail... Unsatisfactory!" yes please andrewholgateSome of these "pulled" or "revert to pre-bid" loans involve already accrued interest which was agreed between AC and the borrowers to keep loans open, but is yet to be paid, so these details need recording and listing somewhere on our account pages, not just wiped off the site completely.
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