corto
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Post by corto on Nov 23, 2019 14:25:08 GMT
Not sure this has been asked before:
When I download my loanbooks for the 30 day or 90 day accounts and add up the invested sums ("Your Holding") it sums up to less than the total on the Dashboard ("Total Investment"). The differences are about 10%. I do have sell orders running, but they are not close to these 10 percent. The numbers for the MLA are correct.
Can anybody support the observation? And if so, any idea what this means?
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cb25
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Post by cb25 on Nov 23, 2019 14:32:11 GMT
Not sure this has been asked before: When I download my loanbooks for the 30 day or 90 day accounts and add up the invested sums ("Your Holding") it sums up to less than the total on the Dashboard ("Total Investment"). The differences are about 10%. I do have sell orders running, but they are not close to these 10 percent. The numbers for the MLA are correct. Can anybody support the observation? And if so, any idea what this means? I get the same. For each of 30DAA/90DAA (and QAA) the total calculated from the downloaded CSV is 89.934% of my onscreen total. Don't know why that should be.
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corto
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Post by corto on Nov 23, 2019 14:52:12 GMT
89.9269 for standard 30Day
89.915 for IFISA 90Day
109.1499 for standard QAA (dashboard says less than file)
It could have been ongoing transactions and infrequent dashboard updates, but cb25's numbers are too close to mine to really support that.
Anybody else?
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ilmoro
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Post by ilmoro on Nov 23, 2019 15:20:44 GMT
The QAA & it's sub accounts contain a proportion of free cash to provide the promised liquidity in normal conditions. The amount will fluctuate depending on its loan holdings, particularly as it operates as de facto underwritter on many loans so when a new loan draws down the QAA etc will hold a significant portion until it is picked up by manual investors. It should never be fully invested as that would mean liquidity would be dependent on loan sales/repayments to release cash for withdrawals.
All the percentages should be the same as each investor account holds a pro rata share of the total account.
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littleoldlady
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Post by littleoldlady on Nov 23, 2019 15:23:46 GMT
Is it uninvested cash that they have to keep to enable withdrawals without selling any loans (in normal market conditions)
edit: beaten to it
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corto
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Post by corto on Nov 23, 2019 15:31:14 GMT
The QAA & it's sub accounts contain a proportion of free cash to provide the promised liquidity in normal conditions. The amount will fluctuate depending on its loan holdings, particularly as it operates as de facto underwritter on many loans so when a new loan draws down the QAA etc will hold a significant portion until it is picked up by manual investors. It should never be fully invested as that would mean liquidity would be dependent on loan sales/repayments to release cash for withdrawals. All the percentages should be the same as each investor account holds a pro rata share of the total account. That makes sense. Thanks for the clarification!
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blender
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Post by blender on Nov 23, 2019 16:04:16 GMT
10% sounds a lot for the 90 day account (without doing any sums). The free cash % should presumably be higher for the QAA and progressively lower as you go towards the 90 day?
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ilmoro
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Post by ilmoro on Nov 23, 2019 16:52:32 GMT
10% sounds a lot for the 90 day account (without doing any sums). The free cash % should presumably be higher for the QAA and progressively lower as you go towards the 90 day? No, they are effectively one account AIUI. They all hold the same % of each loan as a proportion of the total account so effectively the notice accounts are sub-accounts of the QAA so the cash will be the same.
eg all three of my accocunts holding of #312 is 2.85% of my total investment in each account.
As an experiment pick a loan in the QAA, divide your holding of that loan in the QAA by your total funds in the QAA (incl swept), take the result & multiple it by your total funds in one of the notice account and then see what you holding of that loan is - answer should match within rounding errors (Works if you use a standard account & a ISA account as well)
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upperdeane
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Post by upperdeane on Nov 23, 2019 17:30:21 GMT
10% sounds a lot for the 90 day account (without doing any sums). The free cash % should presumably be higher for the QAA and progressively lower as you go towards the 90 day? No, they are effectively one account AIUI. They all hold the same % of each loan as a proportion of the total account so effectively the notice accounts are sub-accounts of the QAA so the cash will be the same.
eg all three of my accocunts holding of #312 is .0285% of my total investment in each account.
As an experiment pick a loan in the QAA, divide your holding of that loan in the QAA by your total funds in the QAA (incl swept), take the result & multiple it by your total funds in one of the notice account and then see what you holding of that loan is - answer should match within rounding errors (Works if you use a standard account & a ISA account as well)
Hi ilmoro. Are you sure your % decimal place is in the right place. My #312 investment in access accounts is actually 2.85% of my total access account holdings ?
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ilmoro
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Post by ilmoro on Nov 23, 2019 17:40:51 GMT
No, they are effectively one account AIUI. They all hold the same % of each loan as a proportion of the total account so effectively the notice accounts are sub-accounts of the QAA so the cash will be the same.
eg all three of my accocunts holding of #312 is .0285% of my total investment in each account.
As an experiment pick a loan in the QAA, divide your holding of that loan in the QAA by your total funds in the QAA (incl swept), take the result & multiple it by your total funds in one of the notice account and then see what you holding of that loan is - answer should match within rounding errors (Works if you use a standard account & a ISA account as well)
Hi ilmoro. Are you sure your % decimal place is in the right place. My #312 investment in access accounts is actually 2.85% of my total access account holdings ? Yep, youre right. The calculator on my phone lacks the % button so I forgot to shift the point over.
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jlend
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Post by jlend on Nov 23, 2019 19:41:21 GMT
Just to add.
Although the QAA 30DAA 90DAA are effectively one account when in normal operation, it is important to remember they have separate PFs and the PF of the 90 day account is currently less well funded than the QAA and 30 day accounts. There is a higher risk of issues with the 90 day account, albeit I assume AC would make an effort to ensure there were no issues with the 90DAA due to the reputational issues it would cause.
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blender
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Post by blender on Nov 24, 2019 10:49:02 GMT
Thanks from this lazy investor who has not read that detail (and yet has passed the test). So each of the protected accounts have separate PFs to mitigate against losses, but all accounts share one free cash account which is primarily there to provide the liquidity offered on the different accounts. Presumably there is a priority algorithm under which the different accounts have access to the free cash, at times of stress?
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Post by Ton ⓉⓞⓃ on Nov 24, 2019 11:18:33 GMT
My feeling is that this is supposition on supposition which appears to make logical sense, but there are a lack of facts to my mind.
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sl75
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Post by sl75 on Nov 24, 2019 17:33:08 GMT
Thanks from this lazy investor who has not read that detail (and yet has passed the test). So each of the protected accounts have separate PFs to mitigate against losses, but all accounts share one free cash account which is primarily there to provide the liquidity offered on the different accounts. Presumably there is a priority algorithm under which the different accounts have access to the free cash, at times of stress? In circumstances where the cash runs out, I think a previous comment stated that withdrawals would queue, in order of the date/time they were due to be fulfilled...
So QAA investors requesting a withdrawal "now", 30DAA investors who requested a withdrawal exactly 30 days ago, and 90DAA investors who requested a withdrawal exactly 90 days ago would be in the same place in the queue.
Naturally, this gives QAA investors a structural liquidity advantage over those in the other accounts in the event of circumstances changing such that a queue needs to be introduced.
So far, this is all hypothetical though, and AC appear to have been successfully managing the free cash buffer at around 10% or more of the total account value for the last few months.
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corto
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Post by corto on Nov 24, 2019 17:47:12 GMT
Isn't that why QAA investors get a lower rate of interest?
There is that lovely picture: You can't have your cake and eat it.
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