Mikeme
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Post by Mikeme on Mar 11, 2020 12:22:20 GMT
Today we are seeing the start of not normal market conditions. I would love to be a fly on the wall in the boardroom of AC. It is in no ones interest to have a run on AC I hope that they are considering :-
A restriction on withdrawals. I would do that today!
A restriction on selling loan parts.
Looking at ways to help borrowers in what will be difficult times.
Making sure unscrupulous borrowers can't take advantage of the current happenings.
My feeling is that if action is taken now our short term pain will be worth the long term gain.
Deliberately controversial in the hope that lenders will enter into constructive discussion.
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cb25
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Post by cb25 on Mar 11, 2020 12:27:05 GMT
Today we are seeing the start of not normal market conditions. I would love to be a fly on the wall in the boardroom of AC. It is in no ones interest to have a run on AC I hope that they are considering :- A restriction on withdrawals. I would do that today! A restriction on selling loan parts. Looking at ways to help borrowers in what will be difficult times. Making sure unscrupulous borrowers can't take advantage of the current happenings. My feeling is that if action is taken now our short term pain will be worth the long term gain. Deliberately controversial in the hope that lenders will enter into constructive discussion. With savings rates (building societies etc.) almost certainly to be reduced, why would people rush to withdraw from P2P that pays a higher rate? I could see that some lenders might want to put their money into assets like equities and properties, which tend to go up as a result of lower rates, but not sure I see a mass stampede for the exit.
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Mikeme
Member of DD Central
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Post by Mikeme on Mar 11, 2020 12:37:01 GMT
cb25 Toilet roll buying people!!
Part of my point is that many honest borrowers will need support and if too much "surplus cash" is removed it might cause problems for those borrowers as they struggle to cope with lack of workers, slow down in sales, pressure from lack of supplies. The list goes on.
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alanh
Posts: 556
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Post by alanh on Mar 11, 2020 12:43:03 GMT
Today we are seeing the start of not normal market conditions. I would love to be a fly on the wall in the boardroom of AC. It is in no ones interest to have a run on AC I hope that they are considering :- A restriction on withdrawals. I would do that today! A restriction on selling loan parts. Looking at ways to help borrowers in what will be difficult times. Making sure unscrupulous borrowers can't take advantage of the current happenings. My feeling is that if action is taken now our short term pain will be worth the long term gain. Deliberately controversial in the hope that lenders will enter into constructive discussion. Might be best to start off by letting us know what you think these "not normal market conditions" are. As far as I can see there is no difference between today and any other day as regards Assetz itself. Or are you just referring to the general turmoil in the stock markets? Coronavirus?
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Mikeme
Member of DD Central
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Post by Mikeme on Mar 11, 2020 12:43:26 GMT
LOL  They heard me and have just sent me an email!!! |
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Post by skidrow on Mar 11, 2020 12:51:07 GMT
Nevertheless, mikeme makes an important point.
We all know that there is panic in the equity markets and Christine Lagarde's latest comments underline that. Who knows what the trigger may be for a similar rush to the exit for p2p?
Perhaps we should all review our savings and investments to be sure that we won't need to liquidate any p2p for planned or expected expenditure in the near/medium future. I have my own view on how long that should be but all our circumstances are different.
FSCS accounts are where our "soon to be needed" funds should be.
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blender
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Post by blender on Mar 11, 2020 12:54:11 GMT
Today we are seeing the start of not normal market conditions. I would love to be a fly on the wall in the boardroom of AC. It is in no ones interest to have a run on AC I hope that they are considering :- A restriction on withdrawals. I would do that today! A restriction on selling loan parts. Looking at ways to help borrowers in what will be difficult times. Making sure unscrupulous borrowers can't take advantage of the current happenings. My feeling is that if action is taken now our short term pain will be worth the long term gain. Deliberately controversial in the hope that lenders will enter into constructive discussion. First they should listen to the budget. A short term imperative is to increase and support SME borrowing, and so gov policy should be to provide short term support to p2p lending as well as bank lending - after all p2p has recently been placed under detrimental FCA restrictions to place it in the same position as banks. I hope that AC will be looking at getting a share of that public support to underpin p2p lenders, borrowers and platforms.
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Post by Harland Kearney on Mar 11, 2020 15:46:42 GMT
The withdrawal of funds maybe more related to depressed markets and a looming possible recession (short in nature?), not a panic (some maybe sure) but a withdrawl of funds to pick up falling funds and ETF's on the market.
Many investors use the QAA as a holding account for funds to be invested elsewhere, it is not bank account but such investors arent' treating it as a bank account (I myself included.)
Being able to hold £20,000 dry powder in a interest baring account, to them put it into action within 96 hours at most under normal conditions is very attractable. Many investors cannot use money market funds anymore due to the post 2008 low interest rates. (Retail investors, you might as well just use a bank at that point with the returns often put into negative corrlation with platform fees.)
I know many people on here will slam me (for some reason?) for posting what is clearly somewhat obvious, but there you go. I would say AC has been very helpful in reducing investment balance cash drag.
AC is not replacement for a pure FCA secured bank account for true cash diversfication in a portfilio, but by hell it sure as hell is attractive returns when used in discrection and understanding.
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Post by gravitykillz on Mar 12, 2020 12:13:00 GMT
Are withdrawals still possible for assetz ?
I know liquidity in ratesetter has dropped like a brick. Some people have been waiting almost a week for their funds.
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victors
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Post by victors on Mar 12, 2020 12:28:45 GMT
My wife withdrew some money on Tuesday with no problem.
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alibaba
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Post by alibaba on Mar 12, 2020 12:35:10 GMT
Made a withdrawal request at 12 am today will see how long it takes
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alanh
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Post by alanh on Mar 12, 2020 12:41:48 GMT
I run multiple accounts on Assetz to take advantage of these offers that come up from time to time, as is the case with the current 1% cashback offer. I withdrew a large chunk from the QAA yesterday and it was in my bank account by close of business. Its now been redeposited into my wifes account, hence making us 1% better off.
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angrysaveruk
Member of DD Central
Say No To T.D.S
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Post by angrysaveruk on Mar 12, 2020 13:24:34 GMT
I have tried to make a withdrawl from the cash account that was building up from the sale of my loans. Should hopefully go through. Had a few thousand left in Zopa covered by their provision fund which was I was going to run down which I have tried to sell out. Thankful I made the decision to exit P2P about 18 months ago, and that my exposure is a fraction of what it once was. Hopefully this situation will not be as serious as some people say it might be, but I would not want to be heavily exposed to higher risk debt if it does turn out to be very bad - could cause a lot of personal and business bankruptcies.
I think the worse thing people can do in this situation is panic since that will cause more damage than the virus itself, but I since I was running down my P2P holdings anyhow I am just seeing if I can accelerate it a bit - if not ill just wait and see what happens. If it really turns out to be like the 1918 influenza I will probably have more important things to worry about than a few quid lying about in P2P loans.
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Post by Undecided on Mar 12, 2020 13:51:10 GMT
Are withdrawals still possible for assetz ? I know liquidity in ratesetter has dropped like a brick. Some people have been waiting almost a week for their funds. Is this correct? I haven't noticed anyone report more than 48 hours.
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cb25
Posts: 3,528
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Post by cb25 on Mar 12, 2020 14:10:01 GMT
Are withdrawals still possible for assetz ? I know liquidity in ratesetter has dropped like a brick. Some people have been waiting almost a week for their funds. Is this correct? I haven't noticed anyone report more than 48 hours. I believe the reference is to RS.
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They heard me and have just sent me an email!!!
