sl75
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Post by sl75 on Mar 12, 2020 22:40:46 GMT
The amount of people who have basically turned off invest funds automatically in this thread is telling of peoples worry about the situation, understandably For me, it's more telling of the practicality of wanting to keep cash flowing from repayments to new loan units within the MLA.
The moment that QAA withdrawals are being serviced in near real-time again, I'll turn the function back on, but the whole point of that function for me is that it allows investment for as little as a few minutes at a time between a repayment/sale and a subsequent purchase. Having them suspended even for as short as "overnight" totally undermines it.
What seems to me more telling of peoples worry about the situation is the approx £8M drop in the QAA and £3M drop in the 30DAA within the last couple of weeks, and that the 1% cashback promotion seems this time to have done nothing to stem the flow - I think it's more down to people who need the money to make sure they can buy enough toilet rolls for the rest of the year, etc.!
It is, however, noticeable that the 90DAA had still been increasing.
I expect there'll still be something of a run on the account though - large numbers of investors who, despite all the warnings, were treating "normal market conditions" as something they could rely on in all circumstances, and who now realise that the warnings do actually mean something, and that they can't rely on getting the money out whenever they want.
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sl75
Posts: 2,092
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Post by sl75 on Mar 12, 2020 22:50:36 GMT
chris - there seems to be a fault with the implementation of the blocking of withdrawals.
At time of writing, I have £0.16xx in my MLA of which £0.15xx is swept to the QAA, and £0.01xx is normal cash.
I should therefore be able to withdraw the £0.01 of normal cash (I'm not going to right now but....). Instead I get a message "You are unable to withdraw from the QAA at this time as withdrawals from Access Accounts are paused temporarily."
I would only expect this message if I were to try to withdraw an amount exceeding the normal cash held in the MLA. Even then I would expect it to simply to be a normal queued withdrawal in the MLA (to be sourced from tomorrow's repayments etc.)
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Post by davee39 on Mar 12, 2020 22:59:04 GMT
I will be queuing all my remaining funds as soon as I can, having withdrawn 20% earlier in the week.
It is not a question of concern about delayed access. Defaults are likely to increase and the underlying assets will have fallen in value. Increased losses are inevitable and will stretch the provision fund to the extent that remaining funds may suffer real capital loss and ultimately the platform may collapse.
I would expect to see an increase in incentives to encourage lenders to stay invested, perhaps by paying 1% cashback after 3 months.
Edit: I have often been unable to withdraw to 1p due to rounding. You may actually have less than that available.
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blender
Member of DD Central
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Post by blender on Mar 12, 2020 22:59:54 GMT
The British Business Bank has a pot of coronacash that can provide for lending through Assetz. I hope this is being pursued.
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greatmarko
Member of DD Central
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Post by greatmarko on Mar 12, 2020 23:02:24 GMT
Do you know when we will see a detailed response from AC at this situation. Comm is gonna be key if we are not going to have a mass run on the platform *if* the accounts reopen. There may well be a mass run on OTHER P2P platforms now as a result of AC's actions this evening, as investors start to worry that perhaps other platforms may follow suit and arbitrarily suspend withdrawals... really hope AC have thought through the wider implications of their actions here on the P2P industry...
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Post by p2pguy45 on Mar 12, 2020 23:05:14 GMT
Assetz entered non-normal market conditions. WITHDRAWALS FROM OUR ACCESS ACCOUNTS ARE CURRENTLY PAUSED AS WE ARE NO LONGER IN NORMAL MARKET CONDITIONS AS A RESULT OF CORONAVIRUS. WE EXPECT THIS TO BE A SHORT-TERM MEASURE AND WILL PROVIDE REGULAR UPDATES. (On their site) Would enjoy a response or news from AC as soon as possible. I really believe this platform to not go under so easily, I hope not as its the only Peer to Peer platform I've left sizeble money inside. They lied earlier when I called them about being unable to transfer funds out of the Quick Access Account telling me it was an IT problem. They are unethical and have been exposed.
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Post by Harland Kearney on Mar 12, 2020 23:12:35 GMT
They likely did not want to cause panic without first making a offical statement and ensureing all systems didnt' allow the intended restrictions. Eitherway, we can only wait to see AC's new que system in a few days & statement tommrow. Overall these are steps that they unavoidble have to take. I would say that the failure of other platforms are not comparble to AC's situation currently (even if defaults raise in a months to come) as of right now, its due to sentiment outside the platform.
We'll see how it all plays out, I'd just say don't panic, keep your head.
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Post by p2pguy45 on Mar 12, 2020 23:12:38 GMT
Assetz entered non-normal market conditions. WITHDRAWALS FROM OUR ACCESS ACCOUNTS ARE CURRENTLY PAUSED AS WE ARE NO LONGER IN NORMAL MARKET CONDITIONS AS A RESULT OF CORONAVIRUS. WE EXPECT THIS TO BE A SHORT-TERM MEASURE AND WILL PROVIDE REGULAR UPDATES. (On their site) Would enjoy a response or news from AC as soon as possible. I really believe this platform to not go under so easily, I hope not as its the only Peer to Peer platform I've left sizeble money inside.
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Post by davee39 on Mar 12, 2020 23:12:55 GMT
Assetz have not arbitrarily suspended withdrawals, they have suspended the secondary market. They have a greater demand for cash than current liquidity allows, a queuing system (common on other platforms) will allow cash withdrawals as liquidity becomes available for new investment or repayments. The accounts are still open for investment but it will be a challenge to convince lenders that investment is worthwhile.
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Post by Ace on Mar 12, 2020 23:20:59 GMT
Unfortunately, the run on AC funds is bound to increase now that instant access its no longer available. This will be partly by people that didn't believe or didn't understand that instant access wasn't guaranteed; and partly by those that did, but judged that they would request some needed funds at a certain length of time before they were actually needed.
I can't see that there it's much that can be done about the first group. The present situation will make them panic and they will likely attempt to withdraw their funds asap.
The second group would likely be reassured if they could see the current size of the QAA withdrawal queue AND the length of time that predicted income from interest and capital repayments would cover those queued withdrawals. E.g Current QAA Withdrawal Queue Size = £3,456k; Predicted Time to Satisfy = 4 Days. (Purely fictitious numbers for the sake of illustration). This Predicted Time to Satisfy would clearly not be guaranteed, but would give us all some idea of where we stand. It would be lengthened by any expected payments that didn't arrive, and would be shortened by any deposits.
So, someone expecting to need their funds in say 9 month's time might feel reassured enough to leave their funds invested for now, whereas they might otherwise issue an immediate withdrawal request. This might even convince some in the first group to leave some/all of their funds invested for now.
I don't personally need my AC funds at any specific time, so I'm happy to keep buying and to leave my sweep setting on.
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Post by p2pguy45 on Mar 12, 2020 23:21:22 GMT
The amount of people who have basically turned off invest funds automatically in this thread is telling of peoples worry about the situation, understandably I think AC are basically finished after this. No one will have any confidence in them given the current situation and the way they have handled it. In any case I'm already expecting massive, if not total losses as the directors run off into the sunset with the last remaining funds. Remember folks it's no longer a 'normal' situation.
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Post by davee39 on Mar 12, 2020 23:26:02 GMT
The amount of people who have basically turned off invest funds automatically in this thread is telling of peoples worry about the situation, understandably I think AC are basically finished after this. No one will have any confidence in them given the current situation and the way they have handled it. In any case I'm already expecting massive, if not total losses as the directors run off into the sunset with the last remaining funds. Remember folks it's no longer a 'normal' situation. Please restrict your trolling to the Funding Circle thread where it belongs.
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Post by Harland Kearney on Mar 12, 2020 23:29:40 GMT
Unfortunately, the run on AC funds is bound to increase now that instant access its no longer available. This will be partly by people that didn't believe or didn't understand that instant access wasn't guaranteed; and partly by those that did, but judged that they would request some needed funds at a certain length of time before they were actually needed. I can't see that there it's much that can be done about the first group. The present situation will make them panic and they will likely attempt to withdraw their funds asap. The second group would likely be reassured if they could see the current size of the QAA withdrawal queue AND the length of time that predicted income from interest and capital repayments would cover those queued withdrawals. E.g Current QAA Withdrawal Queue Size = £3,456k; Predicted Time to Satisfy = 4 Days. (Purely fictitious numbers for the sake of illustration). This Predicted Time to Satisfy would clearly not be guaranteed, but would give us all some idea of where we stand. It would be lengthened by any expected payments that didn't arrive, and would be shortened by any deposits. So, someone expecting to need their funds in say 9 month's time might feel reassured enough to leave their funds invested for now, whereas they might otherwise issue an immediate withdrawal request. This might even convince some in the first group to leave some/all of their funds invested for now. I don't personally need my AC funds at any specific time, so I'm happy to keep buying and to leave my sweep setting on. I agree with every single point you make. There has been a run on nearly all money things past few weeks, we can only see how it plays out. I am waiting for AC's more offical reply. If the withdrawal system is just to match weaker demand, I may very well keep all funds invested as I do not need them also.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 12, 2020 23:32:27 GMT
The amount of people who have basically turned off invest funds automatically in this thread is telling of peoples worry about the situation, understandably I think AC are basically finished after this. No one will have any confidence in them given the current situation and the way they have handled it. In any case I'm already expecting massive, if not total losses as the directors run off into the sunset with the last remaining funds. Remember folks it's no longer a 'normal' situation. Utter rubbish. And probably libellous. They have handled it exactly as they should in the extraordinary circumstances we are in. I suppose you think the Dow Jones shouldn't have been suspended on several occasions over the last few days in response to the extreme share price movements? The only reason I have turned off auto invest is so I have the funds free to be able to invest in the MLIA as required.
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r00lish67
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Post by r00lish67 on Mar 12, 2020 23:33:09 GMT
The amount of people who have basically turned off invest funds automatically in this thread is telling of peoples worry about the situation, understandably I think AC are basically finished after this. No one will have any confidence in them given the current situation and the way they have handled it. In any case I'm already expecting massive, if not total losses as the directors run off into the sunset with the last remaining funds. Remember folks it's no longer a 'normal' situation. I disagree with this. They have always advertised their accounts as operating the way they do in 'normal market conditions'. How can anyone say that we're not currently out of those bounds now. Stock markets had a 'black' Monday followed swiftly by an even blacker Thursday. Just today, it was apparently the 4th biggest drop in the Dow of all time. All Assetz have done so far is pause withdrawals from the QAA - I'd say that's pretty good going in the circumstances. Meanwhile, to suggest total losses at this stage is ludicrous. Even the shambolic likes of Lendy and FS won't cause investors a total loss, and Assetz are nowhere near that category. They have a genuinely good track record with their loanbook, which is why to date they have continued to succeed where other platforms have hit the wall. <crossed with ilmoro>
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