dead-money
Rocket to the Moon
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Post by dead-money on Mar 25, 2020 11:45:27 GMT
MLA Interest and repayments immediately available for use No queues for withdrawal Generous discounts available on secondary market But increased risk of loan defaults / repayment delays
QAA Has the provision fund
However 'target capped' rates are likely to go lower
I for one am recycling monies freed from access accounts into discounted loans within MLA account.
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benaj
Member of DD Central
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Post by benaj on Mar 25, 2020 11:53:16 GMT
MLA may not be suitable for everyone. Unlike AAs, interest are not paid on the 1st every month in MLA, and no provision fund.
When the loan is suspended, or there is a monitoring event, the loan cannot be traded.
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dead-money
Rocket to the Moon
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Post by dead-money on Mar 25, 2020 12:02:19 GMT
True, but for those of us with a longer term investment view now seems like a buying opportunity.
I'm currently split evenly across QAA, 30D, 90D and MLA.
I've been reinvesting interest from access accounts into MLA for a while and the discounts now on offer seem to make that process more attractive, (subject to my usual filtering criteria on loans.)
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Post by Harland Kearney on Mar 25, 2020 12:13:58 GMT
I do not have the time to pick individal loans. Access account is another type of investment that although inside P2P is somewhat unqiue to the industry offered by AC. To a certain extent it reminds me of *buying the market*, rather than only picking winners. You'd make more money if you picked just winners, but I do not have enough time for that. I also think I'd do a not so great job  |
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Post by jasonnewman on Mar 25, 2020 12:29:34 GMT
MLA Interest and repayments immediately available for use No queues for withdrawal Generous discounts available on secondary market But increased risk of loan defaults / repayment delays
QAA Has the provision fund
However 'target capped' rates are likely to go lower
I for one am recycling monies freed from access accounts into discounted loans within MLA account.
Yes I agree - You can create your own access fund by putting small amounts across a number of businesses and effectively you will get regular payments. It beats the access accounts currently on offer where you get screwed twice 1) lower rates 2) only access to whatever AC chooses to give you
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ceejay
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Post by ceejay on Mar 25, 2020 13:58:12 GMT
A question I always try to ask myself - especially relevant these days - is "how do I get my money out?". Quite a few P2P platform offerings seem to be constructed on the assumption that you're only ever going to want to watch your money grow, and never actually withdraw it!
So MLA would definitely not be a good idea if you were buying 5 year loans and you will definitely want your money out in 12 months time.
But if you can match the (remaining) duration of the loans to your desired exit time, then liquidity becomes much less of an issue. Of course, development loans in particular have a habit of overrunning, even in happy times, so you need to make an allowance for that. But if you have enough diversification to cover the loss risk (creating your own PF) then this could be a good bet at the moment.
The main thing that is holding me back from diving in on the bargains in the MLA is the same thing that is restraining me from throwing a pile of cash at the stock market - are we sure we're at the bottom yet? If I knew how to answer that one I wouldn't be here...
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Post by madmitch on Mar 25, 2020 17:05:58 GMT
Well put.
When the sssssh (you know what) really hits the proverbial in the States we may see a significant retracement. The dollar has a massive impact on the world markets. I agree we with you we are likely to witness a classic 'double bottom'. However, in these strange times I would also be exceedingly happy to be wrong!!
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dead-money
Rocket to the Moon
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Post by dead-money on Mar 26, 2020 8:37:45 GMT
Yep have some limit orders set to buy as and when the US & UK markets dip again, of course as soon as I set them the market rallied by 10%...
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corto
Member of DD Central
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Post by corto on Mar 26, 2020 9:05:54 GMT
Yep have some limit orders set to buy as and when the US & UK markets dip again, of course as soon as I set them the market rallied by 10%...
I'd say recession is priced in, depression not.
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Post by madmitch on Mar 26, 2020 10:55:28 GMT
Yep have some limit orders set to buy as and when the US & UK markets dip again, of course as soon as I set them the market rallied by 10%...
Can you let me know when you're setting some more limit orders? 
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Post by valueinvestor123 on Mar 29, 2020 14:01:00 GMT
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