michaelc
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Post by michaelc on Mar 13, 2020 16:50:40 GMT
Assetz seem to be using it as a reason to freeze withdrawals from previously marketed "instant access" accounts.
I'd like to think that their model especially for the qaa account is vastly different to BC. I'd like to think that a "run" on BC as we are seeing at Assetz isn't possible because of how it works - you can't demand your money back you can only put it on the SM and hope someone buys it. In the meantime your interest will go to assist BC.
However, their SM is growing but does it matter? Its only at levels seen a few months ago but if it reached say 200 loans would that matter either? It seemed to at Lendy for example where the SM was stuck for a very long time prior to it going under.
Presumably what really matters at BC is the real economy and thus the ability or borrowers to repay and the value of the underlying assets?
Penny for your thoughts on this everyone.
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bg
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Post by bg on Mar 13, 2020 18:09:07 GMT
Assetz seem to be using it as a reason to freeze withdrawals from previously marketed "instant access" accounts. I'd like to think that their model especially for the qaa account is vastly different to BC. I'd like to think that a "run" on BC as we are seeing at Assetz isn't possible because of how it works - you can't demand your money back you can only put it on the SM and hope someone buys it. In the meantime your interest will go to assist BC. However, their SM is growing but does it matter? Its only at levels seen a few months ago but if it reached say 200 loans would that matter either? It seemed to at Lendy for example where the SM was stuck for a very long time prior to it going under. Presumably what really matters at BC is the real economy and thus the ability or borrowers to repay and the value of the underlying assets? Penny for your thoughts on this everyone. I don't think its a case of AC looking for a reason to freeze withdrawals, they had no option. The QAA was always marked as instant access in normal market conditions, the last 2 weeks have been far from normal. Also what is worth bearing in mind is that AC access accounts are not 'cash' accounts. The money is invested in loans, it's not a case of withdraw your 'cash' its a case of the loans need to sell to another buyer first. With spare cash in the accounts at around £2m it was no surprise that AC paused withdrawals. They could see the pipeline of withdrawal requests coming out of the 30D and 90D accounts, they had to press pause at some point. What ultimately matters here is the quality of the asset and the ability for the loan to be repaid as you say. This shock is certainly going to hit asset prices, especially commercial property but hopefully it will be a temporary shock and the market will recover. Personally I hope the likes of BC look to sit it out and wait for recovery if the worst happens. I certainly have no desire to see the assets securing my loans sold off in a fire sale.
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KoR_Wraith
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Post by KoR_Wraith on Mar 13, 2020 19:04:14 GMT
The loan launched at 6pm today looked very generous compared to the last 6 months.
Coincidence? I think not.
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SteveT
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Post by SteveT on Mar 14, 2020 7:46:04 GMT
Anyone lending on BC hopefully already understands that their money must be considered “locked up” until loans are repaid by borrowers. Opportunities to sell any loans on via the SM are a bonus, not a right.
The economic environment may manifest itself in slower filling of new BC loans, but this would likely lead to higher rates of interest required of new borrowers.
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victors
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Post by victors on Mar 14, 2020 8:31:04 GMT
I think that you don't earn interest while up for sale on the secondary market.
Nobody wants to leave it on sale for a long time losing interest.
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Greenwood2
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Post by Greenwood2 on Mar 15, 2020 14:08:51 GMT
There are a lot of loans for sale and not just ones about to finish, even some that I would buy if I had any funds!
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Greenwood2
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Post by Greenwood2 on Mar 17, 2020 14:25:29 GMT
A couple with discounts now.
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victors
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Post by victors on Mar 18, 2020 8:48:48 GMT
Quite a reassuring email from the CEO yesterday.
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shimself
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Post by shimself on Mar 18, 2020 10:26:32 GMT
Quite a reassuring email from the CEO yesterday. Yes. But it's very well written, spelling, grammar etc. It can't be Louis
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Greenwood2
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Post by Greenwood2 on Mar 18, 2020 11:25:05 GMT
Quite a reassuring email from the CEO yesterday. Yes. But it's very well written, spelling, grammar etc. It can't be Louis I thought I spotted a few errors. 
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tomp
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Post by tomp on Mar 18, 2020 11:33:44 GMT
Yes. But it's very well written, spelling, grammar etc. It can't be Louis I thought I spotted a few errors. They always make few errors that is how you know it is original 
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shimself
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Post by shimself on Mar 18, 2020 13:04:39 GMT
Yes. But it's very well written, spelling, grammar etc. It can't be Louis I thought I spotted a few errors. spellchecking I found very little.
agains instead of gains
oddly enough agains but this time instead of against
LTV's once
a lending criteria
A joke from Facebook:
Truth to tell I'm not too bored stuck at home, but I've noted something strange. In one 1kg packet of rice there are 7759 grains, but in another of the same brand and weight there are 7789. Weird!
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Greenwood2
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Post by Greenwood2 on Mar 18, 2020 14:18:05 GMT
I thought I spotted a few errors. spellchecking I found very little.
agains instead of gains
oddly enough agains but this time instead of against
LTV's once
a lending criteria
A joke from Facebook:
Truth to tell I'm not too bored stuck at home, but I've noted something strange. In one 1kg packet of rice there are 7759 grains, but in another of the same brand and weight there are 7789. Weird!
'then will have' should be 'we will have' or 'then we will have' 'would we' should be 'we would' knowledgeable policy (can a policy have knowledge?) getting pedantic now too much time on my hands . With regards to the rice, he has two boxes of rice! No wonder I can't buy any. I would do an independent check but no rice.
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victors
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Post by victors on Mar 18, 2020 14:40:08 GMT
Do BC pocket all the interest from loans up for sale on the secondary market?
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michaelc
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Post by michaelc on Mar 18, 2020 16:27:36 GMT
Do BC pocket all the interest from loans up for sale on the secondary market? I think so. In general, I'm glad to see most of the "worry" here is about Louis' spelling and grammar  Personally, I'd be "happy" that if there are any loses then they are entirely attributable to the underlying asset having dropped in value due to the current economic situation. As long as the platform (BC) weathers the storm I think we'll be basically ok. I wonder if someone more knowledgeable than me could confirm that even in the worst case of a full on "run" with 100% of customers putting his/her loans on the secondary market, never re-investing and withdrawing all cash when available, that BC themselves would simply lose cash inflow going forward if no new loans were issued but they'd actually gain quite a lot of "free" interest from all the loans in the SM. In such a "customer run" armageddon scenario they'd still hold up quite well wouldn't they?
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