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Post by df on May 3, 2020 8:44:21 GMT
Just looking a the discount bracketing it suggests decrements in 0.5%. I'm curious as to what it'll be come market launch. ABL's is waaaay too granular at 3-decimal places, in my opinion. Can't remember for sure what MT's was when that was introduced, although 0.5% does ring a bell ( SteveT , any connection?). I don't think I'd want to see it at anything less than 0.5% steps, maybe even 1%. Perhaps there should be a poll to gauge sellers preferences?  Yes, MT was 0.5%. ABL looks like 3, but in reality it's only 1 decimal place.
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iRobot
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Post by iRobot on May 3, 2020 8:48:00 GMT
Just looking a the discount bracketing it suggests decrements in 0.5%. I'm curious as to what it'll be come market launch. ABL's is waaaay too granular at 3-decimal places, in my opinion. Can't remember for sure what MT's was when that was introduced, although 0.5% does ring a bell ( SteveT , any connection?). I don't think I'd want to see it at anything less than 0.5% steps, maybe even 1%. I simply assumed it will be the same steps as the MLA Ah, I see - I've not got an MLA account and very little experience of any SM beyond a brief 'getting-to-know-you' stint with ABL in my early days with them. 0.5% does seem likely then. Thx.
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Post by jjogia on May 3, 2020 8:49:41 GMT
I have around 40k in access accounts and could do with some liquid cash so will likely put my portfolios up for sale at around 15-20% discount in the new market place. Good to know that there appear to be buyers at this level.
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littleoldlady
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Post by littleoldlady on May 3, 2020 10:11:49 GMT
I'm not quite sure I follow on how you get to a (huge) 50% discount, though? Or do you mean a 50% discount of the interest margin (rather than of the principal) or something similar? In the cold light of day nor am I. The calculation is more complicated than I thought late at night. But it still seems to me to be the way to arrive at a logical figure if someone can do the math.
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chris1200
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Post by chris1200 on May 3, 2020 10:13:38 GMT
I'm not quite sure I follow on how you get to a (huge) 50% discount, though? Or do you mean a 50% discount of the interest margin (rather than of the principal) or something similar? In the cold light of day nor am I. The calculation is more complicated than I thought late at night. But it still seems to me to be the way to arrive at a logical figure if someone can do the math. Appreciate your honesty  This is all going to be subjective estimation to some extent, anyway - particularly as individual circumstances will play a big factor. We'll have to wait and see!
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Post by davee39 on May 3, 2020 10:35:57 GMT
I have just downloaded my loanbook. A small number of loans have had their valuation reduced below 100%, although most defaults remain fully valued, showing some indication that most of the value is recoverable.
The net reduction in value is about 1.3%. This ignores any effect from provision fund or 'ring fence cash' since I have no idea how they work, or if these funds will ever be applied. I will be watching closely.
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ceejay
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Post by ceejay on May 3, 2020 11:39:26 GMT
I have just downloaded my loanbook. A small number of loans have had their valuation reduced below 100%, although most defaults remain fully valued, showing some indication that most of the value is recoverable. The net reduction in value is about 1.3%. This ignores any effect from provision fund or 'ring fence cash' since I have no idea how they work, or if these funds will ever be applied. I will be watching closely. I'm more than a little sceptical about the % valuations provided by AC, not because I suspect anything underhand but simply because I don't think that the future value of some of these loans is knowable with any degree of accuracy. I think that the value will also vary hugely depending on how much patience is available. Consider a half-built housing development, of which there are several on the books. How much is that worth? If the development stops, for any of several possible reasons, then the value is small, regardless of timescale. But if it can be completed, albeit late, then the recovery looks a lot better. But only if the housing market gets going again before AC and/or its investors run out of patience. So the value of one of these loans could legitimately be anything from 10% to 100%, and I'm sure that in the end there will be examples across the whole range, though I wouldn't like to say what the mix will be. My conclusion is that, although it would be great to do an analytical calculation of the fair value of the AA portfolio, the going rate on the market will in practice be driven almost entirely by emotions. Both greed and fear can be very powerful!
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amwinv
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Post by amwinv on May 3, 2020 11:51:31 GMT
If anyone wants to sell any loans at a 50% discount message me so I can buy them off you - I intend to subsequently put them in the withdrawal queue and redeem at par. Thanks Comment liked by alender, chris1200, dave4 and for some reason jasonnewman himself. And with that comment you have just discredited any potential legal action you could ever place on AC. You are willing to reinvest in a product that you are convinced you will lose all your money in? Or have you just been stirring up all this fear and hatred toward AC in the hope of boosting up potential discounts? Has this been the play all along?
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chris1200
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Post by chris1200 on May 3, 2020 12:02:13 GMT
If anyone wants to sell any loans at a 50% discount message me so I can buy them off you - I intend to subsequently put them in the withdrawal queue and redeem at par. Thanks Comment liked by alender, chris1200, dave4 and for some reason jasonnewman himself. And with that comment you have just discredited any potential legal action you could ever place on AC. You are willing to reinvest in a product that you are convinced you will lose all your money in? Or have you just been stirring up all this fear and hatred toward AC in the hope of boosting up potential discounts? Has this been the play all along? Wow, this is a strawman extraordinaire. 1) I liked the comment because it reflected the insanity to me that someone would sell at a 50% discount. I'm not intending to buy for personal reasons, but by no means would I dream of offering anything close to a 50% discount either. You'll see other posts by me where I argue that even a 13% deduction would be overly generous. Please don't attach completely unwarranted assertions to a single like. I've also never said I'm convinced I will 'lose all my money' in AC. Please do point me to where I've said anything even remotely close to this. 2) As I have said repeatedly, I am not planning to take legal action against AC, for god's sake! Nor am I encouraging anyone else to. The amount I have invested would barely even cover a few hours of legal advice! 3) Please do tell me whether I've "stirred up fear and hatred toward AC". I've raised completely legitimate concerns about what's happening in an entirely responsible and measured way. For you to suggest there is something unethical about that is concerning. 4) I'm a lawyer by training. It is my natural instinct when people are making misleading or unfounded characterisations about something - particularly legal issues - to try to rebut these. This has been both towards AC itself and other users. 5) For you to suggest I'm undertaking a 'play' of any kind is a really serious accusation that I suggest you withdraw immediately. As I've said elsewhere repeatedly, I recognise that to a large extent AC's interests are my interests in this. To try to do anything to damage them would be idiotic. All in all, this is an anonymous board, but you should think seriously in the future before you throw these kinds of accusations around. It demeans you and this board.
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Post by Harland Kearney on May 3, 2020 12:08:47 GMT
But he's replying to Jason, so I'm not sure how he is implying that?
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chris1200
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Post by chris1200 on May 3, 2020 12:09:39 GMT
But he's replying to Jason, so I'm not sure how he is implying that? "Comment liked by alender, chris1200, dave4 and for some reason jasonnewman himself." Why say this if he doesn't want to implicate the other users in what follows? He's deliberately cited people he sees as critical of AC.
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agent69
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Post by agent69 on May 3, 2020 12:14:18 GMT
I have around 40k in access accounts and could do with some liquid cash so will likely put my portfolios up for sale at around 15-20% discount in the new market place. Good to know that there appear to be buyers at this level. I suspect that sellers will outnumber buyers by a considerable margin, and your £40k will initially be vying for positin at the head of the queue, with several millions of other investors cash.
It will be interesting to see how many buyers are out there and how desperate sellers are to sell. Personally, I don't see a lot of point in offering a discount until the wave of panic stricken investors have dumped their holdings, and discount levels have stabilised.
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amwinv
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Post by amwinv on May 3, 2020 12:16:10 GMT
The bulk of my post was aimed at the notorious complainer and legal action enthusiast Jason, who is now clearly showing he is willing invest a company he wants to sue.
I added the names of who liked that post for historic preservation *in case* any legal action was brought against AC in the future. As people can easily delete posts and unlike comments.
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chris1200
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Post by chris1200 on May 3, 2020 12:19:29 GMT
The bulk of my post was aimed at the notorious complainer and legal action enthusiast Jason, who is now clearly showing he is willing invest a company he wants to sue. I added the names of who liked that post for historic preservation *in case* any legal action was brought against AC in the future. As people can easily delete posts and unlike comments. "The bulk" - so, not all. Please do then tell me which aspects do apply to me. Otherwise, I suggest you edit the post to make it clear that you're not directing your accusations at me. Also, with respect, the idea that liking that post could have any import in this sort of legal case is ridiculous.
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ceejay
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Post by ceejay on May 3, 2020 12:20:23 GMT
I have around 40k in access accounts and could do with some liquid cash so will likely put my portfolios up for sale at around 15-20% discount in the new market place. Good to know that there appear to be buyers at this level. I suspect that sellers will outnumber buyers by a considerable margin, and your £40k will initially be vying for positin at the head of the queue, with several millions of other investors cash.
It will be interesting to see how many buyers are out there and how desperate sellers are to sell. Personally, I don't see a lot of point in offering a discount until the wave of panic stricken investors have dumped their holdings, and discount levels have stabilised.
An interesting point about the degree of desperation, I think. Yes, there will be some who are very desperate and there may well be a race to big discounts at the beginning, which I'm sure will ease off when the very desperate are replaced at the head of the queue by the merely ordinarily desperate! I strongly suspect there will be some bargains to be had early on, and I for one intend to be ready for it - although I certainly won't be betting anything I can't afford to lose.
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