ashtondav
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Post by ashtondav on Nov 30, 2019 15:45:01 GMT
Given the recent changes on RS and LW how long can AC retain the high rates on the access accounts? Maybe a change to 5?, 4?, 3? Perhaps?
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puddleduck
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Post by puddleduck on Nov 30, 2019 15:59:35 GMT
Assetz is my biggest holding, but I'd be off if rates reduce. There are multiple huge multi-million suspended loans at the moment and the risk-reward is already looking a little dicey for me.
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dead-money
Rocket to the Moon
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Post by dead-money on Nov 30, 2019 17:26:11 GMT
I wouldn't worry, there still seems to be a decent margin between lender and borrower rates.
Remember the Access accounts get a much lower aggregate rate than the underlying loans.
Take a look at your loan holdings in the MLA and then add a couple of percent to that to know what the borrowers are being charged.
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Post by carol167 on Nov 30, 2019 18:17:37 GMT
You could argue that by recently closing the SPA and GBBA accounts, that is in effect a rate cut for those who want to stay invested but don't want to go the MLA route (albeit a phased reduction as Interst comes in and loans repay).
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corto
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one-syllabistic
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Post by corto on Nov 30, 2019 18:52:25 GMT
I wouldn't worry, there still seems to be a decent margin between lender and borrower rates.
Remember the Access accounts get a much lower aggregate rate than the underlying loans.
Take a look at your loan holdings in the MLA and then add a couple of percent to that to know what the borrowers are being charged.
The more relevant number for the investor to watch is, how much of the investments are freezing over time. Subtract that from your holdings and hope for recoveries.
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p2pfan
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Post by p2pfan on Nov 30, 2019 19:06:42 GMT
You could argue that by recently closing the SPA and GBBA accounts, that is in effect a rate cut for those who want to stay invested but don't want to go the MLA route (albeit a phased reduction as Interst comes in and loans repay). This is true. I was about to add funds to GBBA at 6.25% but have had no choice now but to place them in 90DAA at 5.75%. As puddleduck has commented, if rates were reduced further it'd make AC a decidedly less attractive proposition. Such high risk investments, with so many potential defaults in the pipeline for us to taste in 2020 and beyond, for a return of only, say, 4% or 5% is not worth it.
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Post by df on Nov 30, 2019 19:12:23 GMT
I wouldn't worry, there still seems to be a decent margin between lender and borrower rates.
Remember the Access accounts get a much lower aggregate rate than the underlying loans.
Take a look at your loan holdings in the MLA and then add a couple of percent to that to know what the borrowers are being charged.
I have 5% loans in my 90-day. In fact I have 569 loans in 90-day (exactly the same in 30-day) out of the whole 576... This is why my MLA is gradually reducing in favour of access (I only invest in 7%+ loans via MLA).
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dead-money
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Post by dead-money on Dec 1, 2019 9:58:15 GMT
Yep, my filter for MLA yields less than twenty current loans I'm interested in investing in.
(My mininum interest rate requirement is 7.5% plus several other criteria.) So 90% of monies with Assetz Capital are currently in the access accounts.
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IFISAcava
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Post by IFISAcava on Dec 1, 2019 11:14:22 GMT
I invested in lower rate loans on MLA because you have flexibility you don't have in GBBA (which loans to sell, selling at discount, etc). With the access accounts you have additional liquidity (usually). But I have an average of 7.26% in MLA Vs 5.1% in 30 day (the 5.75% in 90 day is a little less liquidity than ideal, unless you do rotating withdrawals/deposits which will reduce actual average notice period if you want money). That 2% difference covers my perceived need to cover own losses/stuck loans (internal provision fund if you like) so I am sticking with MLA (diversified across 333 loans) for now even at lower loan rates.
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