p2pfan
Member of DD Central
Full-Time Investor
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Post by p2pfan on Jan 7, 2020 0:31:53 GMT
I've gone through all the loans which have an "estimated drawdown" this month, in January, and been surprised to see that the very highest is merely paying 7.5% and the majority are paying less, down to 6.0%. There used to be quite a few loans paying 8% or 9%+.
Considering the medium-high risk profile of the loans on offer, this downward-spiral in returns is far from ideal.
Has anyone else noticed reduced returns on AC MLA loans?
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Post by mrclondon on Jan 17, 2020 15:24:05 GMT
There has also been a marked cull in the pipeline list, which has been running at 70-80 entries with some entries originating from well over 12 months ago from memory, now just 29 entries (totaling c. £15m of initial drawdowns) with six marked as expected to go live in the 2nd half of January.
With quite a number of the large development loans (typically 8% yield) now slowly redeeming through sales of the completed properties and/or refinance from elsewhere, there is going to be major cash glut. When I checked the access accounts searlier in the week I concluded that there was already a c. £30m cash reserve.
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sl75
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Post by sl75 on Jan 17, 2020 22:12:13 GMT
... When I checked the access accounts searlier in the week I concluded that there was already a c. £30m cash reserve. It's been at a broadly similar level (£20-40M) since last May.
As well as the new loans we can easily see in the pipeline, there's a constant stream of "Principal further advance" transactions for existing loans - a pipeline that's almost certainly clearly visible to AC even though it might not be to us (without trawling through hundreds of individual loan pages). Those further advances seem initially to be funded exclusively from the Access Account monies, so having at least several million in reserve seems practically essential to the normal running of the account.
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Post by chris on Jan 18, 2020 8:59:07 GMT
mrclondon - there's been a change to the rules under which loans can be previewed. For technical reasons they have to be further through the stages of the pipeline and much closer to drawing, so there's naturally fewer loans at that stage at any one point in time. We're debating adding another list of earlier stage loans or some other indicator of the size of the pipeline, but I don't yet know what will come of that.
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SteveT
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Post by SteveT on Jan 18, 2020 9:34:13 GMT
mrclondon - there's been a change to the rules under which loans can be previewed. For technical reasons they have to be further through the stages of the pipeline and much closer to drawing, so there's naturally fewer loans at that stage at any one point in time. We're debating adding another list of earlier stage loans or some other indicator of the size of the pipeline, but I don't yet know what will come of that. , currently there is no column for "Risk Category" on the Upcoming Loans page, nor can I find any mention of Risk Category within their Credit Reports. This means that lenders are being invited to place orders for upcoming loans (and have units allocated to them on drawdown) without being informed of their Risk Category. If AC is now required to provide a Risk Category assessment to lenders for current loans, should this column not also appear on the Upcoming Loans page?
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Post by dan1 on Jan 18, 2020 9:49:38 GMT
mrclondon - there's been a change to the rules under which loans can be previewed. For technical reasons they have to be further through the stages of the pipeline and much closer to drawing, so there's naturally fewer loans at that stage at any one point in time. We're debating adding another list of earlier stage loans or some other indicator of the size of the pipeline, but I don't yet know what will come of that. , currently there is no column for "Risk Category" on the Upcoming Loans page, nor can I find any mention of Risk Category within their Credit Reports. This means that lenders are being invited to place orders for upcoming loans (and have units allocated to them on drawdown) without being informed of their Risk Category. If AC is now required to provide a Risk Category assessment to lenders for current loans, should this column not also appear on the Upcoming Loans page? The risk category is stated on the individual loan page (both "view" and "view-pipeline" urls). The risk category is visible when clicking to download the credit report.
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SteveT
Member of DD Central
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Post by SteveT on Jan 18, 2020 10:22:19 GMT
chris , currently there is no column for "Risk Category" on the Upcoming Loans page, nor can I find any mention of Risk Category within their Credit Reports. This means that lenders are being invited to place orders for upcoming loans (and have units allocated to them on drawdown) without being informed of their Risk Category. If AC is now required to provide a Risk Category assessment to lenders for current loans, should this column not also appear on the Upcoming Loans page? The risk category is stated on the individual loan page (both "view" and "view-pipeline" urls). The risk category is visible when clicking to download the credit report. So it is. Thanks! Was looking for text, rather than a coloured lozenge, for some reason. Odd, then, that it's not actually mentioned within the Credit Report itself (seems an obvious thing for a Credit Report to include) It would still be useful to add the "Risk Category" column to the Upcoming Loans page.
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