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Post by chris on Nov 17, 2014 15:15:24 GMT
And has a provision fund. Discuss!
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Post by phoenix on Nov 17, 2014 15:24:53 GMT
Flabber. Gasted.
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Post by pepperpot on Nov 17, 2014 15:25:15 GMT
And has a provision fund. Discuss! Is the fund starting at zilch, or has it been seeded?
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Post by chris on Nov 17, 2014 15:28:31 GMT
And has a provision fund. Discuss! Is the fund starting at zilch, or has it been seeded? It's been seeded initially with funds to cover the first £1m of investment into the account with the 5% coverage. After that point we'll take a view as to whether to top it up further or let it operate solely on the margin generated from the investments. There's a load of marketing material on its way to lenders this afternoon / evening which I believe covers this.
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hendragon
Member of DD Central
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Post by hendragon on Nov 17, 2014 15:32:55 GMT
why would anyone invest at 7% when 9.5% plus (with asset security) is available on the am. Doesn't make any sense to me. Do AC intend to become like ratesetter? At those rates I know where I would rather invest.
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Post by chris on Nov 17, 2014 15:36:28 GMT
why would anyone invest at 7% when 9.5% plus (with asset security) is available on the am. Doesn't make any sense to me. Do AC intend to become like ratesetter? At those rates I know where I would rather invest. 9.5% plus (with asset security) is not for everyone. We're not aiming to be RS or any other platform but we are intending to broaden our appeal. This isn't a product targeted at existing lenders except perhaps those who are time poor or like the additional protection, perhaps because they are higher rate tax payers. It will appeal to some of our existing lenders but won't appeal to others. The important thing is that you have that choice.
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bugs4me
Member of DD Central
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Post by bugs4me on Nov 17, 2014 15:37:05 GMT
I stand to be corrected but there appears no clear exit strategy in the event you need to or want to liquidate your holdings. Will see what the additional literature covers but 7% doesn't really appeal to me ATM.
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hendragon
Member of DD Central
Posts: 631
Likes: 619
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Post by hendragon on Nov 17, 2014 15:39:28 GMT
why would anyone invest at 7% when 9.5% plus (with asset security) is available on the am. Doesn't make any sense to me. Do AC intend to become like ratesetter? At those rates I know where I would rather invest. 9.5% plus (with asset security) is not for everyone. We're not aiming to be RS or any other platform but we are intending to broaden our appeal. This isn't a product targeted at existing lenders except perhaps those who are time poor or like the additional protection, perhaps because they are higher rate tax payers. It will appeal to some of our existing lenders but won't appeal to others. The important thing is that you have that choice. will we still have the choice of individual loans or is AC planning for those to be merged into a similar account?
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Post by chris on Nov 17, 2014 15:41:31 GMT
I stand to be corrected but there appears no clear exit strategy in the event you need to or want to liquidate your holdings. Will see what the additional literature covers but 7% doesn't really appeal to me ATM. Set your target investment to £0 and the system will try and sell you out as fast as it can, subject to buyers being ready to step in. No exit fees or charges.
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Post by chris on Nov 17, 2014 15:43:27 GMT
9.5% plus (with asset security) is not for everyone. We're not aiming to be RS or any other platform but we are intending to broaden our appeal. This isn't a product targeted at existing lenders except perhaps those who are time poor or like the additional protection, perhaps because they are higher rate tax payers. It will appeal to some of our existing lenders but won't appeal to others. The important thing is that you have that choice. will we still have the choice of individual loans or is AC planning for those to be merged into a similar account? There'll always be the manual option. We'll also be launching other products targeted at different demographics, and the create your own product will be launching in a couple of weeks time. There you can devise your own automated investment strategy using the same tools we have at our disposal. Again each tool / option will appeal to different lenders, and we're not trying to impose a one size fits all solution.
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Post by batchoy on Nov 17, 2014 15:49:00 GMT
I find somewhat ironic that in the early days of AC we were regularly informed as to why the AC model with no provision fund was better than the RS and Zopa models with provision funds and if memory servers there were even pages on the old website devoted to why provision funds were not all they were cracked up to be and now low and behold AC are offering a product with a provision fund. Oh and by the way wounldn't be better to fix what is already their so that it works properly before adding more to it?
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Post by Ton ⓉⓞⓃ on Nov 17, 2014 15:49:35 GMT
will we still have the choice of individual loans or is AC planning for those to be merged into a similar account? There'll always be the manual option. We'll also be launching other products targeted at different demographics, and the create your own product will be launching in a couple of weeks time. There you can devise your own automated investment strategy using the same tools we have at our disposal. Again each tool / option will appeal to different lenders, and we're not trying to impose a one size fits all solution. Is one of those products a SIPP?
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Post by chris on Nov 17, 2014 15:50:50 GMT
I find somewhat ironic that in the early days of AC we were regularly informed as to why the AC model with no provision fund was better than the RS and Zopa models with provision funds and if memory servers there were even pages on the old website devoted to why provision funds were not all they were cracked up to be and now low and behold AC are offering a product with a provision fund. Thinking moves on. These are still asset backed loans, and we still believe that asset backed loans are better than unsecured lending with a provision fund, but if we are able to offer both asset backed loans with a provision fund then that is better still. We won't be the last platform to embrace a little bit of change here or there.
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Post by chris on Nov 17, 2014 15:51:34 GMT
There'll always be the manual option. We'll also be launching other products targeted at different demographics, and the create your own product will be launching in a couple of weeks time. There you can devise your own automated investment strategy using the same tools we have at our disposal. Again each tool / option will appeal to different lenders, and we're not trying to impose a one size fits all solution. Is one of those products a SIPP? Now that would be telling 
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Nov 17, 2014 15:56:17 GMT
What are the default implications for funders of a loan who are not participating in the GEIA scheme with its provision fund.
Do the GEIA investors get paid out fully, principle and accrued interest, BEFORE any allocation goes holders of the basic loan?
If only 50% is recovered after a default (and all fees), and half the investors are in GEIA 7% and half are in MLIA 9.5+%, do those in GEIA get paid out fully first, and those in MLIA get nothing, or is half the recovery allocated to each set of investors, and the rest of GEIA due repayment come from the provision fund?
PS.
I am surprised you've carried on to launch this new sub platform when so many of the accounting figures on the main platform have yet to be announced as corrected following the plethora of errors which have been reported.
Added 16:00
"Thinking moves on".
I do hope thinking is still going on to correct all the accrued interest discrepancies which have been pointed out on other threads in the last month.
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