Mousey
Member of DD Central
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Post by Mousey on Mar 28, 2020 13:54:09 GMT
The difference between the rates of interest across the Access Accounts goes into the Provision Fund for each respective account.
Unfortunately from changing the accounts from a queue to a pool they have prevented any sensible investor from depositing money as that money will be 'stuck' until every loan that currently exists redeems which may well be 5+ years away.
As to what sensible steps Assetz can now take - well I imagine a new 365 day product (although I understand the name "Wealth 365" is already taken) and a big drop in interest rates across the remaining access accounts.
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alanh
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Post by alanh on Mar 28, 2020 14:21:04 GMT
I don't see why they would increase the interest on these accounts. Its not going to attract any new money and everyone else is locked in anyway. I'd be more worried about preservation of capital than any supposed rate of interest.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Mar 28, 2020 15:24:04 GMT
AC have said that they are already looking at allowing funds in shorter notice accounts to move to longer notice accounts. They are also looking at allowing them to be moved to the MLA so that the lender can benefit from the full interest and can sell at a discount if they choose. AC don't pocket the difference between the notice account rate and the full loan rate. The difference is paid to the PF, to the protection of all lenders in that account. IMO they will, in the end, convert the access accounts to MLA holdings, or, if they can't for legal or other reasons, almost all lenders will take up the option. Liquidity achieved via deposits exceeding withdrawals is never going to happen, it will only come from loan repayments, so it is pointless accepting a lower rate of interest in return for instant/notice access which will never exist, and you may as well hold the loans themselves. (Well, never is a long time so perhaps substitute "in the foreseeable future" if you are a super optimist.) The PFs no longer needed will be taken up by AC to partially offset the cost of the higher interest.
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dovap
Member of DD Central
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Post by dovap on Mar 28, 2020 16:07:34 GMT
The difference between the rates of interest across the Access Accounts goes into the Provision Fund for each respective account.
Unfortunately from changing the accounts from a queue to a pool they have prevented any sensible investor from depositing money as that money will be 'stuck' until every loan that currently exists redeems which may well be 5+ years away.
As to what sensible steps Assetz can now take - well I imagine a new 365 day product (although I understand the name "Wealth 365" is already taken) and a big drop in interest rates across the remaining access accounts.
could just convert 30 to 300 and the 90 to 900 sure no one would mind and it's no doubt fine to do so in the t&cs
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alanh
Posts: 556
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Post by alanh on Mar 28, 2020 16:16:31 GMT
The difference between the rates of interest across the Access Accounts goes into the Provision Fund for each respective account.
Unfortunately from changing the accounts from a queue to a pool they have prevented any sensible investor from depositing money as that money will be 'stuck' until every loan that currently exists redeems which may well be 5+ years away.
As to what sensible steps Assetz can now take - well I imagine a new 365 day product (although I understand the name "Wealth 365" is already taken) and a big drop in interest rates across the remaining access accounts.
could just convert 30 to 300 and the 90 to 900 sure no one would mind and it's no doubt fine to do so in the t&cs Are those years?
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Mar 28, 2020 17:25:14 GMT
I put money in the GBBA2 expecting the larger loans to be reduced as new loans were added and we know what happened to that, I am still stuck in those large loans. I was reasonably happy to have unused funds earning about half a decent rate of interest in the QAA in exchange for liquid access which no longer exists. Should I feel fairly treated or have I had unrealistic expectations?
Use of the provision fund to compensate losses from other loans not in the access accounts does not seem fair, when it was taken from the interest on access account loans which will likely be insufficient to cover losses.
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