garfield
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Post by garfield on Aug 29, 2020 10:46:53 GMT
Hang on the article says 6m£ traded but withdrawals down by £10m. ? ... implying a net £4m of previously queued withdrawals cancelled Do we know how long the withdrawal queue was before the SM kicked in?
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dead-money
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Post by dead-money on Aug 29, 2020 10:57:18 GMT
Hang on the article says 6m£ traded but withdrawals down by £10m. ? ... implying a net £4m of previously queued withdrawals cancelled Also what's the definition of £6M traded? Is that £6M of transactions completed? In which case the actual net inflow or outflow of funds will be somewhat less.
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dead-money
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Post by dead-money on Aug 29, 2020 11:05:14 GMT
... implying a net £4m of previously queued withdrawals cancelled Do we know how long the withdrawal queue was before the SM kicked in? Infinite; withdrawals via repayment of capital would have trailled off to 2099 and beyond as good loans redeemed and you were left only with untradeable bad loans.
NB This will still happen if AC doesn't restart the pipeline of new P2P lending.
But with the secondary market, you now you have the option to discount your holdings and pass that risk on to the more sophisticated investor aka 'greater fool'...
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blender
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Post by blender on Aug 29, 2020 11:33:23 GMT
... implying a net £4m of previously queued withdrawals cancelled Also what's the definition of £6M traded? Is that £6M of transactions completed? In which case the actual net inflow or outflow of funds will be somewhat less.
It will be whatever produces the biggest number to quote - so a flip counts twice. But it will not include, yet, any monthly interest reinvested at discount. The discount is too high and it is too early to see major reductions in the withdrawal queue. The 'don't panic but ...!' email will not have helped. At least that is my judgement. A week ago I was thinking about removing some withdrawal requests.
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dead-money
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Post by dead-money on Aug 29, 2020 14:45:54 GMT
Also what's the definition of £6M traded? Is that £6M of transactions completed? In which case the actual net inflow or outflow of funds will be somewhat less.
It will be whatever produces the biggest number to quote - so a flip counts twice. But it will not include, yet, any monthly interest reinvested at discount. The discount is too high and it is too early to see major reductions in the withdrawal queue. The 'don't panic but ...!' email will not have helped. At least that is my judgement. A week ago I was thinking about removing some withdrawal requests.
Yep, 'Handle' rather than 'Drop' in Casino terms.
Every cloud has a silver lining - We panicked the horses, but it did at least boost our headline trading volumes...
Sell discount did hit 8.0% earlier, but it's back to 8.3% now.
Agree, I've halved my holdings since March; now looking to half again and will hopefully be in a single account, 100% MLA by end of September.
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cb25
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Post by cb25 on Aug 29, 2020 14:52:08 GMT
It will be whatever produces the biggest number to quote - so a flip counts twice. But it will not include, yet, any monthly interest reinvested at discount. The discount is too high and it is too early to see major reductions in the withdrawal queue. The 'don't panic but ...!' email will not have helped. At least that is my judgement. A week ago I was thinking about removing some withdrawal requests.
Yep, 'Handle' rather than 'Drop' in Casino terms.
Every cloud has a silver lining - We panicked the horses, but it did at least boost our headline trading volumes...
Sell discount did hit 8.0% earlier, but it's back to 8.3% now.
Agree, I've halved my holdings since March; now looking to half again and will hopefully be in a single account, 100% MLA by end of September.
Was that by selling at a discount or something else? Much as I'd like to get to an MLA-only position (currently way too much in AAs), I'm loathe to take the hit from selling at discount (certainly not around 8%)
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dead-money
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Post by dead-money on Aug 29, 2020 15:29:26 GMT
Yep, 'Handle' rather than 'Drop' in Casino terms.
Every cloud has a silver lining - We panicked the horses, but it did at least boost our headline trading volumes...
Sell discount did hit 8.0% earlier, but it's back to 8.3% now.
Agree, I've halved my holdings since March; now looking to half again and will hopefully be in a single account, 100% MLA by end of September.
Was that by selling at a discount or something else? Much as I'd like to get to an MLA-only position (currently way too much in AAs), I'm loathe to take the hit from selling at discount (certainly not around 8%) This week, parts I bought at 10%+ I've sold at 8%; before this week I was content selling out some long-term holdings at 5.9% & 6.0% to reduce exposure, (as that was still a net positive return over the period held.)
I'm hoping on Tuesday orders between 7% to 5% discount will be filled, those I'll use to buy into MLA, (there are still seem good MLA loans available below par.)
The cynic suggests AC will then through another curveball on 4th Sept and further spook the horses, so discount will deepen and new flipping opportunities may present.
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Post by Harland Kearney on Aug 29, 2020 15:39:37 GMT
Was that by selling at a discount or something else? Much as I'd like to get to an MLA-only position (currently way too much in AAs), I'm loathe to take the hit from selling at discount (certainly not around 8%) This week, parts I bought at 10%+ I've sold at 8%; before this week I was content selling out some long-term holdings at 5.9% & 6.0% to reduce exposure, (as that was still a net positive return over the period held.)
I'm hoping on Tuesday orders between 7% to 5% discount will be filled, those I'll use to buy into MLA, (there are still seem good MLA loans available below par.)
The cynic suggests AC will then through another curveball on 4th Sept and further spook the horses, so discount will deepen and new flipping opportunities may present.
Why on the 4th? Yes I think 5-7% will be feasible when the interest repayments hit & any repayments that day.
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dead-money
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Post by dead-money on Aug 29, 2020 15:41:16 GMT
This week, parts I bought at 10%+ I've sold at 8%; before this week I was content selling out some long-term holdings at 5.9% & 6.0% to reduce exposure, (as that was still a net positive return over the period held.)
I'm hoping on Tuesday orders between 7% to 5% discount will be filled, those I'll use to buy into MLA, (there are still seem good MLA loans available below par.)
The cynic suggests AC will then through another curveball on 4th Sept and further spook the horses, so discount will deepen and new flipping opportunities may present.
Why on the 4th? Yes I think 5-7% will be feasible when the interest repayments hit & any repayments that day.
Friday at 18:30 on the way out the door to the pub, send a mass email, announcing #227 and other zombie holdings are now untradeable in AAs. LOLs...
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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 Aug 29, 2020 16:14:15 GMT
This week, parts I bought at 10%+ I've sold at 8%; before this week I was content selling out some long-term holdings at 5.9% & 6.0% to reduce exposure, (as that was still a net positive return over the period held.) I'm hoping on Tuesday orders between 7% to 5% discount will be filled, those I'll use to buy into MLA, (there are still seem good MLA loans available below par.) The cynic suggests AC will then through another curveball on 4th Sept and further spook the horses, so discount will deepen and new flipping opportunities may present. Why on the 4th? Earliest date for project restart.
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Post by elephantrosie on Aug 29, 2020 17:22:56 GMT
why are investors more inclined to keep their money on AC with the new SM policy?
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iRobot
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Post by iRobot on Aug 29, 2020 18:00:08 GMT
why are investors more inclined to keep their money on AC with the new SM policy? IMO, perception. Before the AAMP, the only way to get funds out of an AA account was via the withdrawal queue. After the AAMP, there is an alternative. Some lenders - who presumably are highly confident they will have no need for their capital anytime soon - are apparently happy to leave the withdrawal queue in the knowledge that they will be able to exit via the AAMP should it become absolutely necessary. (I'd still like to see some kind of overview with absolute £ values for the amounts (both offer and bid) on the AAMP at various discount points. I think everyone else here would, too. Tagging chris / stuartassetzcapital  )
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Post by elephantrosie on Aug 29, 2020 18:04:59 GMT
why are investors more inclined to keep their money on AC with the new SM policy? IMO, perception. Before the AAMP, the only way to get funds out of an AA account was via the withdrawal queue. After the AAMP, there is an alternative. Some lenders - who presumably are highly confident they will have no need for their capital anytime soon - are apparently happy to leave the withdrawal queue in the knowledge that they will be able to exit via the AAMP should it become absolutely necessary. (I'd still like to see some kind of overview with absolute £ values for the amounts (both offer and bid) on the AAMP at various discount points. I think everyone else here would, too. Tagging chris / stuartassetzcapital ) Thank you for the reply. For those who opt to offer discount at the advantage of getting to the front of withdrawal, the current discounts are rather high ie. 8% for the 90AA. wouldnt that mean that those investors offering these rates are losing out on their investments? given that the 90AA rate is less than 5% and they are offering 8% discounts? so they are losing out 3%. is my thought correct?
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dead-money
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Post by dead-money on Aug 29, 2020 19:39:23 GMT
IMO, perception. Before the AAMP, the only way to get funds out of an AA account was via the withdrawal queue. After the AAMP, there is an alternative. Some lenders - who presumably are highly confident they will have no need for their capital anytime soon - are apparently happy to leave the withdrawal queue in the knowledge that they will be able to exit via the AAMP should it become absolutely necessary. (I'd still like to see some kind of overview with absolute £ values for the amounts (both offer and bid) on the AAMP at various discount points. I think everyone else here would, too. Tagging chris / stuartassetzcapital ) Thank you for the reply. For those who opt to offer discount at the advantage of getting to the front of withdrawal, the current discounts are rather high ie. 8% for the 90AA. wouldnt that mean that those investors offering these rates are losing out on their investments? given that the 90AA rate is less than 5% and they are offering 8% discounts? so they are losing out 3%. is my thought correct?
Remember rates on the Access account were higher pre March.
Assuming you've been invested for 18 months or more with interest reinvested, a 6% sell discount means you aren't taking a net capital loss.
At 8% discount you need to have held the account for 2 years or more.
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iRobot
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Post by iRobot on Aug 29, 2020 20:03:36 GMT
Thank you for the reply. For those who opt to offer discount at the advantage of getting to the front of withdrawal, the current discounts are rather high ie. 8% for the 90AA. wouldnt that mean that those investors offering these rates are losing out on their investments? given that the 90AA rate is less than 5% and they are offering 8% discounts? so they are losing out 3%. is my thought correct?
The maths is more complicated than that, <snip>
Especially if you factor in some cashback offers / introductory target rates / etc ... 
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