JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Dec 6, 2019 9:56:32 GMT
I invested heavily in GBBA2 aware that some loans and lenders would be much larger than a good diversification would need. I had assumed that as more investors and loans were added to this account over time, then those large loans would be watered down. Of course that will not happen now and those large loan parts are the very ones which are not being sold. Why was I wrong to expect that to happen?
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ceejay
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Post by ceejay on Dec 6, 2019 10:42:24 GMT
I invested heavily in GBBA2 aware that some loans and lenders would be much larger than a good diversification would need. I had assumed that as more investors and loans were added to this account over time, then those large loans would be watered down. Of course that will not happen now and those large loan parts are the very ones which are not being sold. Why was I wrong to expect that to happen?It all hinges on the ambiguous word "expect". If you take it to mean "hope", or even "think more likely than not", then no you weren't wrong. But if you mean "believe that this is definitely going to happen in all possible circumstances" then I'm afraid you were very wrong. Sadly, this is what we all do, all the time - use vague words with shifting meanings so that in the end we can convince ourselves that black is white, or that P2P has guaranteed returns, or that you really ought to vote for xxx...
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jlend
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Post by jlend on Dec 6, 2019 11:16:13 GMT
I invested heavily in GBBA2 aware that some loans and lenders would be much larger than a good diversification would need. I had assumed that as more investors and loans were added to this account over time, then those large loans would be watered down. Of course that will not happen now and those large loan parts are the very ones which are not being sold. Why was I wrong to expect that to happen? Just curious Are you now planning to try and sell out of the account or leave all the loans to finish either on time or written off by AC? Have you looked at how close you are at the moment to getting the target rate of interest each month on the account?
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Dec 6, 2019 13:15:03 GMT
I invested heavily in GBBA2 aware that some loans and lenders would be much larger than a good diversification would need. I had assumed that as more investors and loans were added to this account over time, then those large loans would be watered down. Of course that will not happen now and those large loan parts are the very ones which are not being sold. Why was I wrong to expect that to happen? Just curious Are you now planning to try and sell out of the account or leave all the loans to finish either on time or written off by AC? Have you looked at how close you are at the moment to getting the target rate of interest each month on the account? I am trying to withdraw from this account as fast as possible while there is still some chance of doing so. I have not looked at the actual interest achieved which I just assumed would be the amount offered with the surplus going to the provision fund, probably another mistake on my part.
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sl75
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Post by sl75 on Dec 6, 2019 15:09:01 GMT
I am trying to withdraw from this account as fast as possible while there is still some chance of doing so. I have not looked at the actual interest achieved which I just assumed would be the amount offered with the surplus going to the provision fund, probably another mistake on my part. If you were happy with the interest rate for the risk involved with GBBA2 and/or PSA the day before it closed to new investment, why not the day after?
By selling out now, you'll be getting rid of all the "good stuff" that's still paying interest, and holding on to the rubbish that either has trading suspended or nobody wants to buy (possibly with good reason).
If anything, as time passes, I'd anticipate that anything that is still able to be sold is likely to become easier to sell, because you're in competition with fewer sellers for the remaining "good stuff". Unless the buying demand on the secondary market dries up, or a disproportionately large number of the loans get suspended, there'll still be plenty of chance to do so later.
For comparison, in my Green Energy Account (which has been closed to new investment for some considerable time now), I have 5 suspended loans (much discussed by those who want to exit!), 1 that, although not suspended, is very slow-selling on the secondary market, and the remaining 11 (still representing more than 60% by value) would likely be sold within a day if I were to ask to liquidate it now.
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Dec 6, 2019 15:41:30 GMT
sl75 see my previous post about larger loan parts being reduced, that will not happen if the account is inactive, so I will be investing elsewhere in future, once I lose trust in a platform I start exiting, I have been leaving Bondora for 4 years now and although it was profitable for me doing that I am very glad I ran it down.
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Post by waryinvestor on Jan 26, 2020 21:38:07 GMT
Just curious Are you now planning to try and sell out of the account or leave all the loans to finish either on time or written off by AC? Have you looked at how close you are at the moment to getting the target rate of interest each month on the account? I am trying to withdraw from this account as fast as possible while there is still some chance of doing so. I have not looked at the actual interest achieved which I just assumed would be the amount offered with the surplus going to the provision fund, probably another mistake on my part. Excuse my ignorance here, but are those not on the Manual Lending Account able to sell their Loans in the secondary market ?
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ceejay
Posts: 975
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Post by ceejay on Jan 26, 2020 22:40:34 GMT
I am trying to withdraw from this account as fast as possible while there is still some chance of doing so. I have not looked at the actual interest achieved which I just assumed would be the amount offered with the surplus going to the provision fund, probably another mistake on my part. Excuse my ignorance here, but are those not on the Manual Lending Account able to sell their Loans in the secondary market ? You can sell MLA loans on the secondary market, if there are buyers and if the loan hasn't been suspended. However this thread is mainly about the packaged accounts GBBA2 and PSA, now closed, where you took what you were given whether you liked it or not - not a problem until the underlying loans got into trouble.
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Post by waryinvestor on Jan 26, 2020 22:43:27 GMT
Excuse my ignorance here, but are those not on the Manual Lending Account able to sell their Loans in the secondary market ? You can sell MLA loans on the secondary market, if there are buyers and if the loan hasn't been suspended. However this thread is mainly about the packaged accounts GBBA2 and PSA, now closed, where you took what you were given whether you liked it or not - not a problem until the underlying loans got into trouble. So, GBBA & GreenAcc Loans can't be sold on the secondary market, right ?
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ceejay
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Post by ceejay on Jan 26, 2020 22:50:15 GMT
You can sell MLA loans on the secondary market, if there are buyers and if the loan hasn't been suspended. However this thread is mainly about the packaged accounts GBBA2 and PSA, now closed, where you took what you were given whether you liked it or not - not a problem until the underlying loans got into trouble. So, GBBA & GreenAcc Loans can't be sold on the secondary market, right ? I don't have any money in any of the packaged accounts - I did try a limited experiment with GBBA and exited as soon as I understood how it worked. But, no, if you are in the packaged accounts then all you can do is ask for some money back and some of your parts will be sold if possible. You don't get to specify which ones. If the loans aren't in default then hopefully you'll get out reasonably quickly. It's the loans that are stuck that are the problem - though, of course, if you had those same loans in the MLA then you wouldn't be able to sell them either.
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ashtondav
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Post by ashtondav on Jan 27, 2020 9:11:20 GMT
But in the MLA you’re not covered by the provision fund. Defaulted loans in GBBA are covered by the PF, so you will eventually get your money.
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lara
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Post by lara on Jan 27, 2020 9:15:09 GMT
But in the MLA you’re not covered by the provision fund. Defaulted loans in GBBA are covered by the PF, so you will eventually get your money. Not necessarily, there is no guarantee that the PF will pay out.
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ceejay
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Post by ceejay on Jan 27, 2020 9:41:15 GMT
But in the MLA you’re not covered by the provision fund. Defaulted loans in GBBA are covered by the PF, so you will eventually get your money. Not necessarily, there is no guarantee that the PF will pay out. I could have just "liked" this post to signify agreement, but that would not have been strong enough. ashtondav , your use of the word "will" is a very long way from correct here. Perhaps you omitted the appropriate smiley?
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ashtondav
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Post by ashtondav on Jan 27, 2020 11:51:40 GMT
Yes, I did  |
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Jan 28, 2020 8:36:14 GMT
I set a large GBBA investment to withdraw all on about 7th December and 24% of it is still stuck there including the ones where it was very over weight. Since trying to withdraw there are now several of the largest allocations marked as Trading Suspended. There has been little sign of any further withdrawal occurring for several weeks,
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