Access Account Secondary Market modus operandi (AC)

The issue being that the incremental discount that you'd have to offer to get out right now might [very hard to estimate] be more than the value of the potentially quarantined elements. Or not. That is the question!

Also, "quarantined" does not mean "bad" it just means

"currently quarantined due to inability to fully ring-fence the entire loan default risk in using the currently available funds in the PF, ignoring any future additional funds that may be added to the PF, ignoring any future funds being released from other ring-fencing that was not needed and ignoring exactly how much of the default risk is not fully ring-fenced (all as per the very cautious FCA rules)."

So not being or being in quarantine does not tell you much about anything.

I don't think so. The quarantine on return from abroad is indeed purely precautionary - no inference is made about whether you're infected or not.

Here, however, a "quarantined" loan is one which has real challenges which are not currently covered by the desired level of ringfenced PF. There IS a problem with the loan.

A better analogy, if you want to go that way, would be "infected".  If you have the virus then you definitely have a problem. Time will tell how serious it is.

Something as simple as a forbearance process applied to a loan where house sales were slowed by lockdown means further interest accrues that might take a loan over a loan to value hurdle, knock it into a higher risk threshold and because the interest rate cannot change the loan instead receives a capital discount. If that can’t be covered by PF cash it would get suspended from AA trading. Yet in that example case the loan was just moved back three months say to a later date of repayment by estate agents being closed. We have obligations to reprice loans when the risk changes and LTV levels are one of those tests. Does that mean any loss is guaranteed in that example ? Not in the slightest, no. So loan suspension is not the same as loan defaults. I hope that helps.

I can't see the discounted buy rates remaining at current levels once funds flow in from the reinvestment of monthly interest next week to buy up sell orders.

Thanks and looks like good news for us all.(maybe a few want my money exceptions)