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Post by dan1 on Feb 20, 2020 18:14:10 GMT
The proportion of cash appears to have fallen to the lowest rate for a while. I think it's around 9% with the cash standing just in excess of £20m. Is this of concern to anyone? I'm undecided but on balance, I'd say I'm not concerned.
The loan book is steadily increasing which I guess implies that deposits/repayments are not quite keeping up with new lending. I assume the rate is being run down in preparation for the new ISA season when AC expect an influx of new deposits (just before and immediately following the deadline). Big repayments on the horizon?
Interesting to take the occasional snapshot.
Apologies, I couldn't find an appropriate thread to attach this post to.
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Mousey
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Post by Mousey on Feb 20, 2020 18:22:27 GMT
£20m is a decent whack of cash.
It's always a risk live monitoring stats like this as once contagion sets in it can become self-fulfilling
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bg
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Post by bg on Feb 20, 2020 19:01:10 GMT
The proportion of cash appears to have fallen to the lowest rate for a while. I think it's around 9% with the cash standing just in excess of £20m. Is this of concern to anyone? I'm undecided but on balance, I'd say I'm not concerned. The loan book is steadily increasing which I guess implies that deposits/repayments are not quite keeping up with new lending. I assume the rate is being run down in preparation for the new ISA season when AC expect an influx of new deposits (just before and immediately following the deadline). Big repayments on the horizon? Interesting to take the occasional snapshot. Apologies, I couldn't find an appropriate thread to attach this post to. It's pretty well managed by AC. They have a lot of levers they can pull if they need to increase the cash buffer. The cash level actually fell sub 2% back in Feb 2019 and was back up to 20% by June. I think there is always a flurry on new loans after Xmas.
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alanh
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Post by alanh on Feb 20, 2020 19:51:20 GMT
I keep an eye on this and log the cash percentage more or less every week. Over the past year the average cash percentage was 11.2% and as bg has said, its been anywhere between 2% and 20%. The current level is slightly less than average but basically mid range. It was last at this level around the end of October.
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Post by Ton ⓉⓞⓃ on Feb 21, 2020 0:33:13 GMT
I keep an eye on this and log the cash percentage more or less every week. Over the past year the average cash percentage was 11.2% and as bg has said, its been anywhere between 2% and 20%. The current level is slightly less than average but basically mid range. It was last at this level around the end of October. That's interesting, can you say what the ratio was around Tax Year end/start?
AC does have cash streams from institutions to lend so I'd guess they could keep printing loans if there's still headroom, so maybe more loans would appear for them on their side. Or is some lent side by side with us in Retail?
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bg
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Post by bg on Feb 21, 2020 7:12:44 GMT
I keep an eye on this and log the cash percentage more or less every week. Over the past year the average cash percentage was 11.2% and as bg has said, its been anywhere between 2% and 20%. The current level is slightly less than average but basically mid range. It was last at this level around the end of October. That's interesting, can you say what the ratio was around Tax Year end/start?
AC does have cash streams from institutions to lend so I'd guess they could keep printing loans if there's still headroom, so maybe more loans would appear for them on their side. Or is some lent side by side with us in Retail?
Here you go:- 
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alanh
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Post by alanh on Feb 21, 2020 9:35:20 GMT
Thanks bg, nice chart. Your data goes back further than mine but shows a similar conclusion that a 10% cash level is about the average.
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p2pfan
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Post by p2pfan on Feb 23, 2020 18:56:01 GMT
Thanks for sharing this useful information.
How can we see what amount or ratio of cash is held by the access accounts?
Can it be broken down by the type of access account?
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alanh
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Post by alanh on Feb 23, 2020 18:59:42 GMT
Its the same proportion on each of the access accounts
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sl75
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Post by sl75 on Feb 24, 2020 20:16:13 GMT
Thanks for sharing this useful information. How can we see what amount or ratio of cash is held by the access accounts? Can it be broken down by the type of access account? Download your loan book for an access account. Total the "Your Holding" column (currently column H). Divide by your total investment in the access account in question.
The sums are a lot easier if you have a precise round amount in one of the access accounts.
As others commented, to date, the system has been set up so that all investments are pooled across all access accounts, so the ratio will be the same whichever one you sample.
AC could plausibly change this going forwards - as things stand, it creates excessive cash drag on the 90DAA, with the benefit being provided in the form of better liquidity in the QAA which is not (directly) paying for it.
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Post by dan1 on Mar 9, 2020 22:26:07 GMT
Proportion of cash held by access accounts is now less than 2.5% or in real terms <£5m in cash, if my calculations are correct.
AC have boosted the refer a friend scheme and offered an additional 1% cashback for new investments held for a year. I'm struggling to think of the remaining levers that can stem the recent trend without significant cost to AC. At least it's not long to wait until the new tax year which must surely bring some fresh investment.
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p2pfan
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Post by p2pfan on Mar 9, 2020 22:50:33 GMT
Proportion of cash held by access accounts is now less than 2.5% or in real terms <£5m in cash, if my calculations are correct. AC have boosted the refer a friend scheme and offered an additional 1% cashback for new investments held for a year. I'm struggling to think of the remaining levers that can stem the recent trend without significant cost to AC. At least it's not long to wait until the new tax year which must surely bring some fresh investment. Thank you for the important insight. 2.5% is a very low ratio. Despite what these P2P platforms will spin, we live in volatile times, as witnessed in today's carnage on the equity markets, and such a tiny buffer ratio is not very reassuring at all. Thoughts?
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Post by dan1 on Mar 9, 2020 22:53:21 GMT
Proportion of cash held by access accounts is now less than 2.5% or in real terms <£5m in cash, if my calculations are correct. AC have boosted the refer a friend scheme and offered an additional 1% cashback for new investments held for a year. I'm struggling to think of the remaining levers that can stem the recent trend without significant cost to AC. At least it's not long to wait until the new tax year which must surely bring some fresh investment. Thank you for the important insight. 2.5% is a very low ratio. Despite what these P2P platforms will spin, we live in volatile times, as witnessed in today's carnage on the equity markets, and such a tiny buffer ratio is not very reassuring at all. Thoughts? My thoughts drift towards those who still persist in using P2P as an easy access savings account. Those who are still doing this (and I'm sure there are many) must be nuts!
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TitoPuente
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Post by TitoPuente on Mar 10, 2020 8:11:05 GMT
QAAs (AC and in general) can be suitable options to park cash taken out from equities for the next 6-12 months. This can benefit the platform liquidity.
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easynow
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Popcorn anyone?
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Post by easynow on Mar 10, 2020 8:55:48 GMT
Lots of panic withdrawals today no doubt, nothing like creating a run.... don't forget to buy all the toilet paper on your way out!
99% invested in July 2018, it was higher than 95% invested the whole month
Above 95% invested for the whole of February and March 2019, again it reached 99% invested at one point and hovered close for a couple of weeks.
I don't recall the lights going out at AC towers on either of those occasions, and there is no need to think they will do now.
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