lara
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Post by lara on May 1, 2020 20:20:00 GMT
I didn't expect 2% less on my 90DAA, especially as in an early e-mail on Wed 08/04/2020 Assetz said this: Unlike some platforms who have slashed or stopped investor interest payments, we expect to continue to pay full, or close to full, interest rates over coming months due to the holding of substantial borrower cash retention sums for circumstances such as these.So what happened to these retained sums? Change of plan  .. Is it though, or was that the plan all along? There has been a whole lot of saying one thing and doing another going on recently.
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Post by BrianC on May 1, 2020 22:14:08 GMT
I am not happy but I am content to cut AC management some slack here. Reality is that there is no possible way that AC could foresee or plan in advance to deal with this unpresedented worldwide crisis and any investor that vents their frustration at AC is misguided, just as the 10s of thousands of people who have lost their jobs or the 10s of thousands of families who have lost loved ones should not blame their employers or hospitals for their losses. I do honestly believe that the board are working as hard as possible to do everything they possibly can to get through this difficult period as painless as possible, but not painless. I can fully understand how disappointed, how frustrated and how angry investors may feel with the current situation but direct your anger at those guilty of causing this pandemic and chaos not the casualties who are doing all they can in our vested interests. I am looking outward with anger to those who caused this crisis by mistake or design, and not inward to those who are doing the best they can to cope with the consequences to the best of their ability. 👍🏻
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jlend
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Post by jlend on May 2, 2020 6:22:22 GMT
IMHO
It is what it is.
If there are insufficient interest payments from borrowers right now, then the interest payments to lenders fall.
There is no magic pot of money. The Provision Funds may need all the money they currently have to fund additional losses. It is not sensible for AC to run down the PFs to pay interest, given the current situation is unlikely to get back to normal for many months.
Interest this month is being temporarily topped up (I assume from the 3 provision funds but it could be ACs own money).
Personally I would assume the 3.75% rate is not increased for the next 12 months and may fall further later in the year when things become clearer on on any expected additional losses.
Some additional clarity on the strength of the 3 PFs would be welcome. AC have already openly said on their website they expect defaults and losses to increase. Whatever the strength of security, personal guarantees etc it is not realistic for losses not to increase a bit so I think their statement was sensible.
We just have to hope the provision funds were strong enough and had a reasonable amount of slack prior to the virus and that AC divert sufficient borrower interest into the PFs going forward.
I don't know if this month if there is any money going in the PFs. The way I read the upate, no money is going into the PFs this month, but I may be wrong, and AC expect borrower interest payments to be better next month.
The April PF update is due to be published in June/July based on experience to date. Some commentary to go with the update would be helpful. AC don't have a crystal ball but they do have to ring fence unallocated money in the PF for future losses else their current model simply does not work.
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agent69
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Post by agent69 on May 2, 2020 8:02:34 GMT
He doesn't say that. He says we have seen 'stockmarket drops of 30% in just a few weeks.' He doesn't provide an end or start date. 7500 (19 Feb) to 5200 (mid March) is over 30% in just a few weeks What's the point of sending out a video today commenting on the value of the stock market 2 weeks ago? Also slightly disingenuous to comment on 20 / 30% drops in the stock market without mentioning that P2P2 investments can (do) go down by 100%.
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Post by hornetbrad on May 2, 2020 8:09:42 GMT
IMHO It is what it is. If there are insufficient interest payments from borrowers right now, then the interest payments to lenders fall. There is no magic pot of money. The Provision Funds may need all the money they currently have to fund additional losses. It is not sensible for AC to run down the PFs to pay interest, given the current situation is unlikely to get back to normal for many months. Interest this month is being temporarily topped up (I assume from the 3 provision funds but it could be ACs own money). Personally I would assume the 3.75% rate is not increased for the next 12 months and may fall further later in the year when things become clearer on on any expected additional losses. Some additional clarity on the strength of the 3 PFs would be welcome. AC have already openly said on their website they expect defaults and losses to increase. Whatever the strength of security, personal guarantees etc it is not realistic for losses not to increase a bit so I think their statement was sensible. We just have to hope the provision funds were strong enough and had a reasonable amount of slack prior to the virus and that AC divert sufficient borrower interest into the PFs going forward. I don't know if this month if there is any money going in the PFs. The way I read the upate, no money is going into the PFs this month, but I may be wrong, and AC expect borrower interest payments to be better next month. The April PF update is due to be published in June/July based on experience to date. Some commentary to go with the update would be helpful. AC don't have a crystal ball but they do have to ring fence unallocated money in the PF for future losses else their current model simply does not work. While I don't disagree with your sentiments, the point is that AC emailed us recently to say the PF had enough funds to pay full (or close to) 3 months' interest, and will do exactly this. To then be told that a few minutes before the (late) interest was paid that the rate had been 'topped up' to 3.75% is sending out very mixed messages and causing some of us to lose faith. What exactly has changed between those two emails for the PF no longer to have that money in it? If there was always the possibility that the PF may run out of money before interest would be paid, why tell us differently?
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jlend
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Post by jlend on May 2, 2020 8:41:02 GMT
hornetbrad IMHO I assume what has changed is that less interest than expected has been received from borrowers and AC have had more time to consider expected losses. The situation with borrowers is probably very fluid. Although.... I do think AC should be careful about setting expectations. It is a risky thing to do from a compliance perspective based on my experience.
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cb25
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Post by cb25 on May 2, 2020 8:51:51 GMT
Also slightly disingenuous to comment on 20 / 30% drops in the stock market without mentioning that P2P2 investments can (do) go down by 100%. Indeed - and P2P investments never go back up... Didn't your AC investments go up yesterday as mine did due to the interest payments? If you're going to say "that doesn't count, it's just interest", why did you invest in P2P because with interest excluded P2P investments can only stay level at best.
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gmitz
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Post by gmitz on May 2, 2020 9:52:04 GMT
If you select IFISA Only, in the section "Accrued Interest" you will see the difference between 3.75% and 4.1%, 5.1% and 5.75%. This means that you are still owned the full percentage of your investments but you are not going to get it now. Mind you, I have over ÂŁ800 in unpaid interest in GBBA1 which I don't think I will ever get, so.
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rscal
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Post by rscal on May 3, 2020 7:24:51 GMT
If you select IFISA Only, in the section "Accrued Interest" you will see the difference between 3.75% and 4.1%, 5.1% and 5.75%. This means that you are still owned the full percentage of your investments but you are not going to get it now. Mind you, I have over ÂŁ800 in unpaid interest in GBBA1 which I don't think I will ever get, so. That's why I ended up turning if off (it's better just to follow actual in-the-hand receipts)
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alender
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Post by alender on May 3, 2020 10:46:53 GMT
I have asked a number of times for the directors to come forward with the amount they have invested in the AAs, they are very quick to jump on things I and other posters say which does not agree with how they wish us to see the world but there is a deafening silence on this.
I do not think it is an unreasonable request to ask the directors how much skin they have in the game aka directors of listed companies buying shares on the open market to show they have confidence in the company they run. Perhaps a proportion of the directors pay could be automatically invested in the AAs, this will show confidence to AA holders and help AA holders cash flow in these difficult times.
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Post by jasonnewman on May 3, 2020 11:02:10 GMT
I have asked a number of times for the directors to come forward with the amount they have invested in the AAs, they are very quick to jump on things I and other posters say which does not agree with how they wish us to see the world but there is a deafening silence on this.
I do not think it is an unreasonable request to ask the directors how much skin they have in the game aka directors of listed companies buying shares on the open market to show they have confidence in the company they run. Perhaps a proportion of the directors pay could be automatically invested in the AAs, this will show confidence to AA holders and help AA holders cash flow in these difficult times.
Maybe the directors are in front of the queue and have already withdrawn all their cash from the access accounts? I think they should just liquidate the loans, return cash to investors and shut down AC. This is a failed project IMO and the longer they continue the more in salaries they and their employees will be paid and in turn fees for investors. I said long time ago, AC are finished.
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Post by Harland Kearney on May 3, 2020 11:03:58 GMT
I am not happy but I am content to cut AC management some slack here. Reality is that there is no possible way that AC could foresee or plan in advance to deal with this unpresedented worldwide crisis and any investor that vents their frustration at AC is misguided, just as the 10s of thousands of people who have lost their jobs or the 10s of thousands of families who have lost loved ones should not blame their employers or hospitals for their losses. I do honestly believe that the board are working as hard as possible to do everything they possibly can to get through this difficult period as painless as possible, but not painless. I can fully understand how disappointed, how frustrated and how angry investors may feel with the current situation but direct your anger at those guilty of causing this pandemic and chaos not the casualties who are doing all they can in our vested interests. I am looking outward with anger to those who caused this crisis by mistake or design, and not inward to those who are doing the best they can to cope with the consequences to the best of their ability. I haven't posted properly for a long time now, I can say the mood is increasingly sombre. A lot of investors have been taken for a ride and fooled into agreeing forbearance etc. Wait till you get to the point of no interest on your loans. No room for hope, you need to stop these situations from escalating early on which is what I tried to do. The positive people like Markg who probably works for AC maybe you should keep investing additional cash given your so sanguine about the whole situation? It will allow the ever increasing pessimistic individuals to get out of these loans. The fact that Funding Circle have managed to get the government to back loans and AC haven't speaks volumes about the ability of the people that run AC. I think AC have done a woeful job, I mean where are all the job cuts and costs savings at AC? Still get incompetent individuals on the online chat that simply copy and paste responses to investors, a 16 year kid could do that. What a waste of money having individuals that get paid for clicking buttons on a mouse....And it is being paid for by investors in the form a fee. Instead of charging investors a fee cut your cost base, the fee will increase overtime with a shrinking loan pool they will ask investors to cough up more of their hard earned to pay for the costs of the incompetent that work at AC. It is also worth bearing in mind after interest was paid out last month, there was an additional lump paid out in withdrawals which reflected the investors interest being re-invested. This time that has not happened. The dark clouds are getting more mirky here at AC... This was a loan repayment by the way, not re-invested interest. The re-invested interest was a seperate payment, far far smaller would have to check record but sure it less than ÂŁ20 like this time. (albiet overall smaller payment of interest so smaller capital) When the SM opens people who want to sell can do so at whatever high or low discount they wish.
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cb25
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Post by cb25 on May 3, 2020 11:14:55 GMT
I have asked a number of times for the directors to come forward with the amount they have invested in the AAs, they are very quick to jump on things I and other posters say which does not agree with how they wish us to see the world but there is a deafening silence on this.
I do not think it is an unreasonable request to ask the directors how much skin they have in the game aka directors of listed companies buying shares on the open market to show they have confidence in the company they run. Perhaps a proportion of the directors pay could be automatically invested in the AAs, this will show confidence to AA holders and help AA holders cash flow in these difficult times.
Maybe the directors are in front of the queue and have already withdrawn all their cash from the access accounts? I think they should just liquidate the loans, return cash to investors and shut down AC. This is a failed project IMO and the longer they continue the more in salaries they and their employees will be paid and in turn fees for investors. I said long time ago, AC are finished. With the property market frozen, if assets could be sold it would only be at a huge discount. If you're OK with that, why not just put your access account holdings up for sale at a slightly lower discount? Much easier and years quicker.
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tjtl
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Post by tjtl on May 3, 2020 11:17:36 GMT
I am not happy but I am content to cut AC management some slack here. Reality is that there is no possible way that AC could foresee or plan in advance to deal with this unpresedented worldwide crisis and any investor that vents their frustration at AC is misguided, just as the 10s of thousands of people who have lost their jobs or the 10s of thousands of families who have lost loved ones should not blame their employers or hospitals for their losses. I do honestly believe that the board are working as hard as possible to do everything they possibly can to get through this difficult period as painless as possible, but not painless. I can fully understand how disappointed, how frustrated and how angry investors may feel with the current situation but direct your anger at those guilty of causing this pandemic and chaos not the casualties who are doing all they can in our vested interests. I am looking outward with anger to those who caused this crisis by mistake or design, and not inward to those who are doing the best they can to cope with the consequences to the best of their ability. I haven't posted properly for a long time now, I can say the mood is increasingly sombre. A lot of investors have been taken for a ride and fooled into agreeing forbearance etc. Wait till you get to the point of no interest on your loans. No room for hope, you need to stop these situations from escalating early on which is what I tried to do. The positive people like Markg who probably works for AC maybe you should keep investing additional cash given your so sanguine about the whole situation? It will allow the ever increasing pessimistic individuals to get out of these loans. The fact that Funding Circle have managed to get the government to back loans and AC haven't speaks volumes about the ability of the people that run AC. I think AC have done a woeful job, I mean where are all the job cuts and costs savings at AC? Still get incompetent individuals on the online chat that simply copy and paste responses to investors, a 16 year kid could do that. What a waste of money having individuals that get paid for clicking buttons on a mouse....And it is being paid for by investors in the form a fee. Instead of charging investors a fee cut your cost base, the fee will increase overtime with a shrinking loan pool they will ask investors to cough up more of their hard earned to pay for the costs of the incompetent that work at AC. It is also worth bearing in mind after interest was paid out last month, there was an additional lump paid out in withdrawals which reflected the investors interest being re-invested. This time that has not happened. The dark clouds are getting more mirky here at AC...
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tjtl
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Post by tjtl on May 3, 2020 11:18:55 GMT
Blimey Jason, what a great ray of sunshine you are! Your self imposed furlough from posting doesn’t seem to have improved your demeanour much does it.
I really struggle to see how you think your permanent diatribe against, and calling out of, the management of AC, is going to bring about any improvement- maybe it helps anger management. And alleging that those that disagree with you “work for AC” is something you better have some evidence for- it strikes me you are playing the man and not the ball.
Like many/most posters on here I have things I am not happy about some things (the most obvious being the non-queueing system, but even there, the amount of difference it makes is minuscule- it is like arguing about the type of hose-fitting when a house is in flames), but my impression is that the management of AC are doing a decent job of managing the business facing an entirely unpredictable hostile, economic environment. And I doubt very much any of us would do a better job (and I am running a firm with over 300 employees, 10 offices around the world, and am well aware of just how tough and lonely management can be at this time).
I a all for criticism if it has a purpose, all for suggestions as to how AC can make all stakeholders less agitated, but just calling for more job cuts, making predictions that make Nostradamus appear optimistic, seems a bit tedious.
Anyway, time will tell how the management team navigate through these horrendous conditions, in the meantime I wish you, and all fellow investors, as much luck as we deserve.
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