warn
Member of DD Central
Curmudgeon
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Post by warn on Dec 7, 2019 19:38:00 GMT
Feature is broken. (Hope it wasn't your optimisation, chris :-) It'd be nice to have it back. |
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sl75
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Post by sl75 on Dec 11, 2019 9:10:45 GMT
Feature is broken. (Hope it wasn't your optimisation, chris :-) It'd be nice to have it back. "Edit instruction" link is now back and working. [duplicated from main thread]
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Post by gramsky on Dec 11, 2019 10:59:47 GMT
Unfortunately it no longer gives the 'Monitoring event' warning.
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Post by chris on Dec 11, 2019 11:16:13 GMT
Unfortunately it no longer gives the 'Monitoring event' warning. Everything is based upon capital revaluation now, for the suspending of instructions and alerts being sent to lenders.
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sl75
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Post by sl75 on Dec 11, 2019 11:45:30 GMT
Unfortunately it no longer gives the 'Monitoring event' warning. Everything is based upon capital revaluation now, for the suspending of instructions and alerts being sent to lenders. I'm not sure I understand these new "capital valuation" figures - almost every loan, including those that have been in default for years, has been assigned a capital valuation of 100%, yet one specific loan #1110 has been picked on to have a different capital valuation at 99.81% (with nothing in the Recent Activity to indicate why this particular loan was revalued, or what this now means).
I don't understand the rationale behind this, or the reason why this one specific loan is considered as having a worse capital valuation than even the most egregrious defaults from past years.
Do some of the "100%" figures actually mean "not specified", but the IT department didn't give the admin department a way to indicate that?
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jlend
Member of DD Central
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Post by jlend on Dec 11, 2019 12:20:54 GMT
There is some info on capital valuation on the website
Looks like there should be info on each loan with a capital valuation change and the loan should be suspended while this is clarified.
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What happens when circumstances change during the life of a loan
During the life of a loan its price is a combination of its interest rate and its capital value.
The interest rate on a loan is set prior to drawdown as described above. The only prospect of changing the interest rate paid by the borrower is if the loan defaults. In the event of default, default interest may be charged to the borrower which, if paid, leads to an enhanced interest rate for lenders (excluding Investment and Access Accounts holders) reflecting the increased perceived risk.
As a result, in order to vary the “price” of a loan during its life, to reflect a fair and appropriate representation of the risk of loss, the capital value of the loan would have to change. If the risk profile of a loan, measured by EL percentage or as indicated by its Risk Category, changes during the life of the loan, then following a change in EL in excess of an amount we consider material and in the case of Development loans only if the Peak EL percentage is exceeded , then we will disclose an associated discount to the loan’s capital value. Following a loan Default the capital value disclosure will be based on the actual loss that may occur.
We will disclose on the loan page dashboard a capital value discount, along with information supporting the change of risk category, and the loan will be temporarily suspended whilst this information is clarified. The capital value discount which is disclosed represents our estimate of the increase in the level of expected loss on the loan. The capital value discount is not enforced on the secondary market, but all buying and selling lenders will need to confirm they have read the relevant information prior to completing a sale or purchase of Micro Loans where a capital value discount is disclosed. It is expected that any trades which do occur in such loans would likely occur at the discounted capital value, but lenders may conclude trades at a different discounted value or indeed with no discount at all if a buyer is willing to purchase at that capital value.
The factors we use to inform the price and any revaluation (such as risk categories, premiums and materiality) are reasonably formulated but may be subject to change over time.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Dec 11, 2019 13:44:21 GMT
Everything is based upon capital revaluation now, for the suspending of instructions and alerts being sent to lenders. I'm not sure I understand these new "capital valuation" figures - almost every loan, including those that have been in default for years, has been assigned a capital valuation of 100%, yet one specific loan #1110 has been picked on to have a different capital valuation at 99.81% (with nothing in the Recent Activity to indicate why this particular loan was revalued, or what this now means).
I don't understand the rationale behind this, or the reason why this one specific loan is considered as having a worse capital valuation than even the most egregrious defaults from past years.
Do some of the "100%" figures actually mean "not specified", but the IT department didn't give the admin department a way to indicate that?
It will only be loans that are investable as anything permanently suspended doesn't need loan pricing as it can't be bought. Also anything in default at an increased rate potentially doesn't need it as the rate increase reflects the pricing to some extent. It is surprising that those in monitoring for delays, cost overduns etc don't have capital reductions or anything with a supplementary loan
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