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Post by chris on Nov 17, 2014 15:59:52 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?
All lenders rank equally as far as I'm aware. So if there's a 50% recovery then all lenders get 50% back and the GEIA investors will then be topped up by the fund.
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agent69
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Post by agent69 on Nov 17, 2014 15:59:54 GMT
So are we saying it's either: - 9.5%, pick your own with no provision fund, or
- 7%, somebody else does the picking, with a provision fund.
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Post by chris on Nov 17, 2014 16:00:18 GMT
So are we saying it's either: - 9.5%, pick your own with no provision fund, or
- 7%, somebody else does the picking, with a provision fund.
Until we launch other products then yes.
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Post by batchoy on Nov 17, 2014 16:07:24 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.
An on statements as well, at the moment it remains impossible to carry out a simple reconciliation between CA and MLIA statements and reconciling these with my accounts package requires significant manipulation of the figures. To which has been added a third account statment if I ever come to the point of actually putting more money into the AC platform rather than withdrawing it as I currently am.
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sl75
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Post by sl75 on Nov 17, 2014 16:10:19 GMT
Needs an additional UI option for MLIA account, when changing the "On Repayment" action, an option for which other account to withdraw interest or repayments+interest to, so that for existing investors who prefer the GEIA, they can set it to invest repayments from MLIA to GEIA, and let the system carry on doing its thing for the next few weeks/months (or those who merely want to diversify into GEIA might set interest to be paid into it for example).
I also don't see any option for what to do when GEIA makes repayments, but perhaps that's because I've not got an investment [yet]?
The blurb I saw so far (possibly not all of it?) doesn't seem to specify who has the beneficial interest in any surplus in the provision fund... as I understand it, this creams off anything over 7.0% return, so could potentially accumulate a significant amount, which will be used to settle any shortfall (up to 5%).
at RateSetter, a "surplus" will ultimately be paid to lenders (over and above the interest they already received) [although only 20% of "the surplus" in any given year]
at Zopa, as I recall, any "surplus" gets managed away by offering better terms to subsequent borrowers, with the stated aim of ensuring only 110% coverage going forwards[!]
Is this a GEIA provision fund (which would thus be wound down over time if the GEIA stopped accepting new investment, so that there'd be a distinct possibility of exceeding 7.0% once a surplus becomes apparent), or a universal "Assetz provision fund" for all qualifying investments (thus giving essentially no possibility of exceeding the 7.0% target for as long as it expands to cover further series of investments)
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Post by chris on Nov 17, 2014 16:11:34 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.
An on statements as well, at the moment it remains impossible to carry out a simple reconciliation between CA and MLIA statements and reconciling these with my accounts package requires significant manipulation of the figures. To which has been added a third account statment if I ever come to the point of actually putting more money into the AC platform rather than withdrawing it as I currently am. Yes this is all being worked on and will be resolved over the next few days.
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Post by chris on Nov 17, 2014 16:17:16 GMT
Needs an additional UI option for MLIA account, when changing the "On Repayment" action, an option for which other account to withdraw interest or repayments+interest to, so that for existing investors who prefer the GEIA, they can set it to invest repayments from MLIA to GEIA, and let the system carry on doing its thing for the next few weeks/months (or those who merely want to diversify into GEIA might set interest to be paid into it for example). I also don't see any option for what to do when GEIA makes repayments, but perhaps that's because I've not got an investment [yet]? The blurb I saw so far (possibly not all of it?) doesn't seem to specify who has the beneficial interest in any surplus in the provision fund... as I understand it, this creams off anything over 7.0% return, so could potentially accumulate a significant amount, which will be used to settle any shortfall (up to 5%). at RateSetter, a "surplus" will ultimately be paid to lenders (over and above the interest they already received) [although only 20% of "the surplus" in any given year] at Zopa, as I recall, any "surplus" gets managed away by offering better terms to subsequent borrowers, with the stated aim of ensuring only 110% coverage going forwards[!] Is this a GEIA provision fund (which would thus be wound down over time if the GEIA stopped accepting new investment, so that there'd be a distinct possibility of exceeding 7.0% once a surplus becomes apparent), or a universal "Assetz provision fund" for all qualifying investments (thus giving essentially no possibility of exceeding the 7.0% target for as long as it expands to cover further series of investments) The option to direct funds appears when you have invested, I can see it on my screen. I agree that there needs to be an option to transfer funds between accounts as repayments are made, it'll be added in time but there are higher priority items to work on first such as those mentioned above. The use of any surplus is beyond my remit as chief geek, so perhaps one for andrewholgate. In the code there is an abstraction between provision fund and product so it's possible to use the same fund to cover multiple products or to separate them as the business sees fit. No doubt over time the business will use this flexibility.
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niceguy37
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Post by niceguy37 on Nov 17, 2014 16:18:19 GMT
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Post by chris on Nov 17, 2014 16:21:36 GMT
Ta. Will get it fixed. In the code it's 71%.
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sl75
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Post by sl75 on Nov 17, 2014 16:29:45 GMT
I tried it with an initial test £10. Seems to be some bugs:
- according to the GEIA statement, it invested the entire £10 into a single loan, rather than equally between N loans with a maximum of 20% in any one loan [the described behaviour]
Purchase loan part 1798043 (old id 1797718) for 10.00 GBP - principal 10.00, annualised rate 9.750, loan: M******* Wind Turbine (112)
- when I looked to the "M******* Wind Turbine (112)" page, it says "You currently have holdings of £60.00 in this loan of which £60.00 has been from manual investment.". Surely having acquired another £10 through an account other than MLIA, my total holdings should now be reported as £70.00?
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niceguy37
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Post by niceguy37 on Nov 17, 2014 16:50:12 GMT
I expect the investors using the Green account will be less technically minded, and will be much less tolerant of bugs, accrued interest issues or promised updates not appearing.
Having said that, it may well attract investors from Abundance Generation, particularly with the comfort of a Provision fund.
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Post by delboy711 on Nov 17, 2014 16:53:48 GMT
I have just tried it out with £2000.
It put the whole lot into a single wind turbine project. Not the behaviour I would have expected. I would have thought it would have spread it around a basket of projects.
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niceguy37
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Post by niceguy37 on Nov 17, 2014 16:59:35 GMT
I have just tried it out with £2000. It put the whole lot into a single wind turbine project. Not the behaviour I would have expected. I would have thought it would have spread it around a basket of projects. That was brave!
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oldgrumpy
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Post by oldgrumpy on Nov 17, 2014 16:59:32 GMT
Where is there a published list showing which of all the loans live on the MLIA market are included in the "basket" available for the Green Energy Investment Account? (It may be obvious which kind of loans are involved, but the list range needs to be visible somewhere when we click GGIA). People seeing "Green" advertising and coming straight in to the Assetz Capital site to look will be very unlikely to go straight to a non green section of the site to view what loans are likely to be offered.
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oldgrumpy
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Post by oldgrumpy on Nov 17, 2014 17:00:53 GMT
I have just tried it out with £2000. It put the whole lot into a single wind turbine project. Not the behaviour I would have expected. I would have thought it would have spread it around a basket of projects. That was brave! Have you accrued any interest yet? (To just ten d.p. will do!) Make sure it's recorded. 
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