dead-money
Rocket to the Moon
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Post by dead-money on May 3, 2020 19:10:16 GMT
mikeb None of the access accounts have a 'target capped rate' of 5.50%
The 'top up' is that AC has put in their own money to allow a payout of 3.75%, without that 'top up' the interest received would have been even less.
This is explained in more detail earlier in this thread.
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mikeb
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Post by mikeb on May 3, 2020 19:31:28 GMT
mikeb None of the access accounts have a 'target capped rate' of 5.50%
The 'top up' is that AC has put in their own money to allow a payout of 3.75%, without that 'top up' the interest received would have been even less.
This is explained in more detail earlier in this thread.
Thank you, and corrected - I was thinking of the PSA (5.5%) not 30-D (5.1%). My point still stands. Why would AC need to put their own money in? We were only recently told that there was a healthy buffer of interest retained that would cover for a few months? Nothing is explained earlier in the thread that clarifies why (on one hand) Stuart said "the missing interest is still accrued" and yet the dashboard shows otherwise.
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tjtl
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Post by tjtl on May 4, 2020 7:11:00 GMT
To those who have berated the management and performance of AC and held up Ratesetter as the example of what AC should have been doing, please see today's announcement by Ratesetter that they are halving all interest payments for the rest of the year so as to replenish the provision funds, Suddenly 3.75% doesn't look too shabby I would suggest.
There are too many platforms losing too much money, consolidation looks increasingly inevitable, and how the platforms treat their investors will be one of the factors that determines who survives (though the most important factor of course will be cold , hard, cash).
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jlend
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Post by jlend on May 4, 2020 7:46:14 GMT
To those who have berated the management and performance of AC and held up Ratesetter as the example of what AC should have been doing, please see today's announcement by Ratesetter that they are halving all interest payments for the rest of the year so as to replenish the provision funds, Suddenly 3.75% doesn't look too shabby I would suggest. There are too many platforms losing too much money, consolidation looks increasingly inevitable, and how the platforms treat their investors will be one of the factors that determines who survives (though the most important factor of course will be cold , hard, cash). It is what it is. It makes sense to preserve capital on all platforms. RS were already planning the change in how the PF was reported by adding the third metric. They have talked about it in the past. The unemployment rate and fall in house prices etc assumed in the metric is a similar worse case scenario that my partner is having to plan for in the civil service. Also similar to the bad case scenario recently released by lloyds/Halifax/Bank of Scotland group. So there is logic there as a planning assumption. Lloyds group have assumptions of circa 30% fall in house prices over 3 years in their bad case. It makes sense for AC and RS to assume a bad case for the next year, no point potentially drip feeding news of rate cuts. There is logic in AC assuming a fall in asset prices as others are doing. How much they assume is a judgement call as is how much a fall impacts the AC loans. Over time this may impact the strength and non ring fenced cash in the AC PF. We may see a pressure on the AC PF in the future.
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Post by elephantrosie on May 28, 2020 18:17:33 GMT
where can i see what is the interest rates for each account this month?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 28, 2020 18:55:55 GMT
where can i see what is the interest rates for each account this month? You cant see what the actual rate will be as that is decided by AC dependent on interest received. Currently about 40% of loans haven't paid interest in May looking at next repayment date, though that will reduce slightly over the next 3 days. Last month that number was about 30%, though might have been higher as some loans may have caught up this month.
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iRobot
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Post by iRobot on May 28, 2020 19:01:30 GMT
Also, keep in view this comment from AC on May 2nd: " The net effect on the Access Accounts is similar but the mechanics change things a little. The interest underpayment/ non-payment by some borrowers reflects in true net interest receipts across the Access Accounts being c 3.2% pa in April meaning all AAs missed their target rate for the first time. We topped that up to 3.75% for all Access Accounts on the 1st May, which happens to be the minimum target rate of the QAA. We expect May interest receipts to catch up somewhat and presently expect to be able to pay the 3.75% again, or close to it, on the 1st of June, whilst recovering our top-up." Not long to wait  |
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Post by Ton ⓉⓞⓃ on May 28, 2020 19:46:58 GMT
where can i see what is the interest rates for each account this month? You cant see what the actual rate will be as that is decided by AC dependent on interest received. Currently about 40% of loans haven't paid interest in May looking at next repayment date, though that will reduce slightly over the next 3 days. Last month that number was about 30%, though might have been higher as some loans may have caught up this month. Also, keep in view this comment from AC on May 2nd: " The net effect on the Access Accounts is similar but the mechanics change things a little. The interest underpayment/ non-payment by some borrowers reflects in true net interest receipts across the Access Accounts being c 3.2% pa in April meaning all AAs missed their target rate for the first time. We topped that up to 3.75% for all Access Accounts on the 1st May, which happens to be the minimum target rate of the QAA. We expect May interest receipts to catch up somewhat and presently expect to be able to pay the 3.75% again, or close to it, on the 1st of June, whilst recovering our top-up." Not long to wait In the vimeo video update of a little while ago stuartassetzcapital talked about "substantial retentions" (I think that's the quote) with some of the loans, I took him to be saying that this might be used to pay the interest, can we tell if this has been used and where? I should say I've not tried to work it out. I'm wondering if this is just about the only source that's been paying the interest, where else could the money be coming from?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 28, 2020 20:27:08 GMT
You cant see what the actual rate will be as that is decided by AC dependent on interest received. Currently about 40% of loans haven't paid interest in May looking at next repayment date, though that will reduce slightly over the next 3 days. Last month that number was about 30%, though might have been higher as some loans may have caught up this month. Also, keep in view this comment from AC on May 2nd: " The net effect on the Access Accounts is similar but the mechanics change things a little. The interest underpayment/ non-payment by some borrowers reflects in true net interest receipts across the Access Accounts being c 3.2% pa in April meaning all AAs missed their target rate for the first time. We topped that up to 3.75% for all Access Accounts on the 1st May, which happens to be the minimum target rate of the QAA. We expect May interest receipts to catch up somewhat and presently expect to be able to pay the 3.75% again, or close to it, on the 1st of June, whilst recovering our top-up." Not long to wait In the vimeo video update of a little while ago stuartassetzcapital talked about "substantial retentions" (I think that's the quote) with some of the loans, I took him to be saying that this might be used to pay the interest, can we tell if this has been used and where? I should say I've not tried to work it out. I'm wondering if this is just about the only source that's been paying the interest, where else could the money be coming from? Yes. Nearly all development loans have retained interest and the forbearance process has been drawing down extra sums on many other loans to provide interest cover on them too, one of the reasons that despite few DFL drawdowns there have still been calls on the AA for funding. Not sure there is any easy way to tell other than reviewing the updates to see where there have been top up drawdowns. (Ive been manually flagging forbearance loans, would have to check how many have had retention topups) There are still a number of loans with the borrower paying where CV19 hasn't impacted income.
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Post by elephantrosie on May 28, 2020 21:54:00 GMT
Also, keep in view this comment from AC on May 2nd: " The net effect on the Access Accounts is similar but the mechanics change things a little. The interest underpayment/ non-payment by some borrowers reflects in true net interest receipts across the Access Accounts being c 3.2% pa in April meaning all AAs missed their target rate for the first time. We topped that up to 3.75% for all Access Accounts on the 1st May, which happens to be the minimum target rate of the QAA. We expect May interest receipts to catch up somewhat and presently expect to be able to pay the 3.75% again, or close to it, on the 1st of June, whilst recovering our top-up." Not long to wait does AC mean interest catching up in June OR interest + their top up =3.75% in June? they are different....
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Post by Ace on May 28, 2020 22:24:14 GMT
Also, keep in view this comment from AC on May 2nd: " The net effect on the Access Accounts is similar but the mechanics change things a little. The interest underpayment/ non-payment by some borrowers reflects in true net interest receipts across the Access Accounts being c 3.2% pa in April meaning all AAs missed their target rate for the first time. We topped that up to 3.75% for all Access Accounts on the 1st May, which happens to be the minimum target rate of the QAA. We expect May interest receipts to catch up somewhat and presently expect to be able to pay the 3.75% again, or close to it, on the 1st of June, whilst recovering our top-up." Not long to wait does AC mean interest catching up in June OR interest + their top up =3.75% in June? they are different.... The way I read it is that they expect to be able to pay us 3.75% in June, and they expect to be able to clawback the extra that they paid us in May to top us up to 3.75%.
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Post by elephantrosie on May 28, 2020 22:44:34 GMT
does AC mean interest catching up in June OR interest + their top up =3.75% in June? they are different.... The way I read it is that they expect to be able to pay us 3.75% in June, and they expect to be able to clawback the extra that they paid us in May to top us up to 3.75%. yes agreed. but it doesnt clarify if they are expecting 1. 3.75% interest payments from the borrowers ONLY or 2. 3.75% interest payments after topping up by them you get what i mean? sorry if its confusing
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Post by Ace on May 28, 2020 23:31:25 GMT
The way I read it is that they expect to be able to pay us 3.75% in June, and they expect to be able to clawback the extra that they paid us in May to top us up to 3.75%. yes agreed. but it doesnt clarify if they are expecting 1. 3.75% interest payments from the borrowers ONLY or 2. 3.75% interest payments after topping up by them you get what i mean? sorry if its confusing I think they are expecting about 4.3% from the borrowers. 3.75% for us and 0.55% for AC (I.e. for them to clawback the extra that they paid us last month above what they received from the borrowers).
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