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Post by jasonnewman on Mar 21, 2020 22:28:59 GMT
I wanted to setup a thread where other members can share ideas on how Assetz can boost liquidity on it's platform and hopefully management will review and comment on the options suggested by members.
To start of with my suggestions would be as follows:
1) Sell loans in access accounts at a discount to agreed borrower rates via MLA - Lending done via access accounts are done at higher rates than what is paid to investors in the access accounts, eg. where a loan of 8% / 9% is agreed with a borrower the investor will get paid 4-5% via the access accounts. Therefore management should consider selling this loans via the MLA at a 1-2% discount to boost liquidity to the access accounts. There is room to do this and effectively a better option as it is money that is moving from access accounts to MLA and thus funds retained by AC so a win win.
2) Seek government support for cash to support British businesses and thus allow AC to continue lending long term as well as easing the liquidity situation in the access accounts. The Government is currently handing out loads of cash to businesses due to COVID-19 and low rate loans, AC should seek to obtain some to this cash to help boost the economy and ease liquidity.
3) Boost cash back offers for new cash onto the platform greater than the 1% currently on offer
4) Increase the rates on the QAA account greater than the 4.1% it currently offers to encourage investors to invest in these, there is scope to do this given the rates agreed with borrowers are 7-9%. This does not seem unreasonable either given people are locked in for sometime and simply don't have QAA to their funds, it will help with marketing, boost the reserves and perhaps calm current investor anger ass they are being compensated for waiting longer.
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Post by investor01010101 on Mar 21, 2020 23:37:50 GMT
They could provide an advice line to the borrowers on how to get the free grants and low costs loans. The borrowers could use these to pay down all or part of their loans to pay the lenders back.
They could stop taking new business as likely this event will mean a scale down of their operation with nobody willing to inject more funds.
Stop fanning around with bad debtors, liquidate them, if other borrowers realise they can get away paying nothing for 2 years like some of the loans on here we are all screwed, they need to set an example.
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registerme
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Post by registerme on Mar 22, 2020 3:18:53 GMT
a) talk to the Bank of Rishi
b) get all their borrowers to talk to the Bank of Rishi
c) return (capital) funds to lenders
Problem solved.
And I am not being flippant.
If I get one hair of a loss from DM I will see AC in court. And they will lose.
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tonyr
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Post by tonyr on Mar 22, 2020 7:22:13 GMT
a) talk to the Bank of Rishi b) get all their borrowers to talk to the Bank of Rishi c) return (capital) funds to lenders Problem solved. And I am not being flippant. If I get one hair of a loss from DM I will see AC in court. And they will lose. I'll back you with your DM case - PM me if it gets to that.
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sapphire
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Post by sapphire on Mar 22, 2020 8:16:19 GMT
AC could facilitate MLA sales by making it easier to identify loans offered at the discount by:
* Displaying the discount info in the loans list provided via 'Browse loans' (the highest discount and the amount offered for each loan). Appreciate screen space is limited but an option could be provided to omit some of the less relevant columns (e.g. Interst Accrued) to create space for the discount info.
* In the "filter option" provide an option to select based on the discount rate
(Whilst there is a thread on this board periodically listing discount loans, this functionality is something AC should themselves be providing via the UI, to be able to easily identify such loans based on up-to-date data)
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marky
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Post by marky on Mar 22, 2020 8:39:25 GMT
Hi,
There is possibly a way to increase liquidity / reduce the amount of queued cash requests as we approach the new ISA season (and I have written to Stuart at Assetz Capital to suggest this).
Why don't AC simply allow existing investors (already caught in the cash queue) to move investments DIRECTLY from their standard QAA / 30DAA / 90DAA access accounts into the AC ISA equivalent accounts WITHOUT having to convert the loans into cash first? This should reduce the funds being queued for cash before then being reinvested on the ISA side of Assetz Capital. It seems pointless to sell 30DAA loans into cash to then rebuy the same loans inside the ISA wrapper doesn't it?
In explanation - I have been saving for my 2020 / 2021 ISA in a standard Assetz Capital 30DAA and, on 7th March, I gave the 30 days notice to convert the investment into cash (so that it matures on 6th April 2020) to then enable me to the money into my Assetz ISA on 6th April 2020. In normal market conditions - I would have sold investments in the 30DAA into cash and then probably bought the same Assetz loans back again when I added the money into my Assetz ISA account.
Thoughts?
Marky
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rscal
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Post by rscal on Mar 22, 2020 8:57:28 GMT
Loose lips costs Chips
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victors
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Post by victors on Mar 22, 2020 9:05:43 GMT
AC could facilitate MLA sales by making it easier to identify loans offered at the discount by: * Displaying the discount info in the loans list provided via 'Browse loans' (the highest discount and the amount offered for each loan). Appreciate screen space is limited but an option could be provided to omit some of the less relevant columns (e.g. Interst Accrued) to create space for the discount info. * In the "filter option" provide an option to select based on the discount rate (Whilst there is a thread on this board periodically listing discount loans, this functionality is something AC should themselves be providing via the UI, to be able to easily identify such loans based on up-to-date data) I'm sure this would be easy to and would be very useful.
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Post by failedtheturingtest on Mar 22, 2020 9:16:52 GMT
Why don't AC simply allow existing investors (already caught in the cash queue) to move investments DIRECTLY from their standard QAA / 30DAA / 90DAA access accounts into the AC ISA equivalent accounts WITHOUT having to convert the loans into cash first? I did something similar to you: at the beginning of January I submitted a withdrawal order for my 90DAA account, with the intention of rolling it over into an IFISA account in April. So I am also clogging up the withdrawal lobby even though I'm not headed for the exit door, I'm headed for the IFISA door. If AC could separate those flows, it might make the withdrawal queue smaller, but I suppose right now they don't know how many people are trying to exit and how many people are just positioning themselves for the new tax year. (Admittedly, under the current circumstances, although I still intend to re-invest most of my AC money with with AC, I'm also going to skim off some of it to buy stocks.)
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Mikeme
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Post by Mikeme on Mar 22, 2020 9:25:29 GMT
They could provide an advice line to the borrowers on how to get the free grants and low costs loans. The borrowers could use these to pay down all or part of their loans to pay the lenders back. They could stop taking new business as likely this event will mean a scale down of their operation with nobody willing to inject more funds. Stop fanning around with bad debtors, liquidate them, if other borrowers realise they can get away paying nothing for 2 years like some of the loans on here we are all screwed, they need to set an example. Most of the borrowers are honest and forcing the hugely costly liquidators to sell at great loss as seen ob FS. Yes the unscrupulous ones but the others forbearance.
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cb25
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Post by cb25 on Mar 22, 2020 9:33:01 GMT
Wrt simply moving non-IFISA loans into the IFISA account without selling out the former and moving the cash, see HMRC
"Peer-to-peer loans held outside of the ISA wrapper cannot be sold, and re-purchased inside an innovative finance ISA except when the loans are sold and are made available for purchase (using cash held by the ISA manager), at the same price, by any lender in the open market. That is, the loans must be available for purchase by more than one prospective purchaser.
It will not usually be open to a platform to purchase a lender’s portfolio of loans and for the proceeds to be used to reacquire the same loans inside the ISA wrapper. Any purchase would need to be of loans made openly available to any prospective lender."
--
As it mentions "the loans must be available for purchase by more than one prospective purchaser." I'm guessing they don't allow transfers of loans from a non-IFISA a/c to an IFISA a/c.
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Post by davee39 on Mar 22, 2020 9:42:08 GMT
If £20 000 in an ISA at 5% earns £1000 interest, a 40% taxpayer would save £400, or £33 a month.
Delaying the ISA transfer for 3 months would cost £100.
Cancelling existing withdrawal requests, to allow the queue to un-jam would not be too costly.
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Post by angel19 on Mar 22, 2020 10:13:48 GMT
Start by getting rid of the artificial liquidity event if an investor wants to move from 30 day to 90 day (and vice versa), subject to notice periods. Also allow 30 day and 90 day money to be transferred into ISA without creating a cash movement.
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r00lish67
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Post by r00lish67 on Mar 22, 2020 10:56:43 GMT
Some good ideas here. I'm a big fan of letting the market do it's thing, so Assetz' existing plan (as per the FAQ) to allow investors to unwrap their QAA holdings and be able to manage the loan parts directly seems best to me. Big discounts may well be required to shift any significant amount of loan, but the fact is that this liquidity crunch is a reflection that the value of your investment has already fallen. It just permits it to sell at the discounted price. For those who are really in over their head, it'll still be be better to sell at 5-10% discounts than stay, and it could be a good opportunity for those with a long-term view. Aside from that, it's just about easing that as much as possible. The MLA is not very buyer friendly - I mean, there really should not be any value in bg posting discounts as he does, it is crazy that there is! The big trouble I see with all of this is whether we should all be trading loans that may already be significantly impaired. I already have 2-3 loans elsewhere that have been suspended on the SM because the borrower is uncertain about whether they can pay. Without a whole fresh set of updates for each and every borrower, I'm not sure we're really on a fair playing field..... (although at this stage, I imagine most borrowers will be saying "  ??"!). |
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Post by Harland Kearney on Mar 22, 2020 10:57:42 GMT
Same, About 80% of my que order is to be re-invested into the 90 DAA and some of that in the ISA wrapper (I plan on using my Lifetime ISA on stocks, so not all of it). I had funds swept so was locked into the situation as I didnt' log in for a few days as I was busy with my business. (you know the whole crash thing!  ) One thing I saw when cash was paid out to investors a few days ago, alot of that was simply recycled into the 90 daa (see the growth of the account in the other thread), as well as some was then reinvested into the QAA (before withdrawl button existed?) A large amount also scooped up nearly all bargins in the MLA (see other posters complaining that the bargins went within a 30 minute period of the pay out) I really think this *liquid* crisis, can be really cooled off by allowing investors to: Transfer funds to the 30DAA & 90DAA without selling up (as can be done from being invested in the 30DAA and transfering to the 90DAA already) Allowing investors to transfer their holdings to the MLA. The ISA is not possible to transfer due to HMRC rules, unfontunely isn't much AC can do about that. Unless they have some smart idea about getting around that. |
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