zlb
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Post by zlb on Feb 3, 2020 9:30:39 GMT
I can't find where this might have been discussed before, but I imagine it has been.
I'm aware that defaulted loans can't be sold on the SM - going on my evidence, e.g. I can't opt to sell at discount even simply rearranged loans on C2F now.
But I can see on eg AC QAA etc my money if moved in and out of the the QAA is invested in defaulted loans (and know that this is how it works/worked). I just wonder how platforms that do this are able to do so given the new regs.
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Post by crabbyoldgit on Feb 3, 2020 15:13:04 GMT
hi, well my understanding is that funds have be ringfenced in the pf sufficient to pay the expected losses under default conditions if those loans in default are to be allocated to new lending idividuals. How the exspecting default level is judged who knows. This must mean that for instance in AC case they must believe in the case of the scottish laird going bust enough funds exist in the individual account pf`s to cover it and all other defaults within the scheme. I dont think playing the discretionary nature of the pf would wash with the authorities in order to get out of jail free. But who knows .
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zlb
Member of DD Central
Posts: 1,422
Likes: 333
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Post by zlb on Feb 3, 2020 22:20:08 GMT
hi, well my understanding is that funds have be ringfenced in the pf sufficient to pay the expected losses under default conditions if those loans in default are to be allocated to new lending idividuals. How the exspecting default level is judged who knows. This must mean that for instance in AC case they must believe in the case of the scottish laird going bust enough funds exist in the individual account pf`s to cover it and all other defaults within the scheme. I dont think playing the discretionary nature of the pf would wash with the authorities in order to get out of jail free. But who knows . yes, AC say they treat pf requirements for defaults in the access accounts differently. However, I find it hard to believe that this allows new investors to be invested in defaults. I couldn't think of other black box cases, but I'm not invested in all platforms. Wonder whether FC does the same.
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