Strange activity on the AM

Found a better place for their money? Discovered something we don't know about and is doing a runner? *issed off with AC prevarication over late B/L's etc? etc., etc., the list is endless but not good news for AC.

There are also many scenarios, several of which have been pointed out by mikes1531, that are not bad news for AC.  The sky isn't always falling.

Hopefully it's simply an underwriter putting up a load of loans, not knowing which ones will sell, but hoping enough will sell in order to meet their shadow bid commitments, and once they've raised enough then re-adjust their targets.  

Chris Three etc's imply many different options in my language. However given the wonderful news from Dave Rickets this afternoon about meetings that took place yesterday, I wonder just what they may imply?

Thanks chris. Some encouraging news there. To the matter in hand though.. I haven’t done the numbers but would hazard a pretty safe guess that the “jumpiness” there’s been on the AM (BL’s aside, I personally see the behavior there as needing no explanation) can’t be wholly (or maybe even significantly) explained by the recent DD/SB’s & must be down to your bigger lenders/underwriters/whatever you want to call them being “jumpy” (or shifting things around like tonyr says), not us little folk.


As a lender I have to ask myself why? And what do they know that I don’t? And (ofcourse) should I be worried about it?


Who knows what direction AC (& P2P lending in general) could take over the coming months.. who knows what types of money..lenders..hybrids of what we now call underwriters or big lenders…emerge & what pots of money they manage…


So I ask the question… given (just by way of example) mikes1513’s concerns… have you guys thought about the possibility of providing some more visibility to ordinary retail lenders such as ourselves on the big positions held by lenders on each loan?


Thinking aloud here.. for example… “Underwriters’ holdings %”, or “Strategic Lenders %”, or “Top 5/10/X Lenders %”


just so we have some sort of reference as to the make-up of a loan?


This would help the ordinary retail lender not only make more informed decisions, but also help him to explain to himself why when things happen on the AM it isn’t really the sky that’s falling down.


A related question.. given AC has always said it prices to risk… & bearing in mind that large lenders/uw’s obtain (presumably) better rates than ordinary folk.. & can easily close the market (exit or entry) to us little folk with their movements… in the absence of any measures taken to provide us ordinary fellers a means to assess things better than we can right now… are we not in effect being asked in practical terms to take on a higher risk at a lower rate?


Just some thoughts..

I do not see that as a major gripe but I should have been more specific as I meant that this was the last fundamental issue that lenders were having.  Outside of the forum we've only had a low single digit number of investors complain about the bids now being separate, at least once our reasoning was explained and we pointed them to the location of the bid reports, and this is a temporary situation anyway as bids hold no meaning in the near future.

It's not a fundamental problem with our thinking or the system, it's a display preference and whether or not we end up changing it (we do plan to display the total outstanding bids in the manual investment account box) I wouldn't classify it as major.

With the manual investments I can honestly understand why many investors didn't like our approach, so we're changing that approach as a matter of urgency.  We've also had a major rethink on how the targets should work so this is an interim step before a wider review which will give more control to lenders.  But as I was trying to highlight in my original post I personally view this as the last major issue where our thinking has been wrong and where we need to make a fundamental change to our approach.  Everything else that I can think of at 7:30 on a Friday evening after a long week is a tweak to how we display things, a more minor amend, or some lenders simply disagreeing with our approach or changes.