blender
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Post by blender on Aug 8, 2020 13:22:22 GMT
Thank you for those clarifications/predictions/interpretations - as we will find out.
Particularly useful is the idea of the 30D and 90D being treated separately - which is sensible particularly when only the QAA can feed the SM. However, that separation cannot be total, because if you are a buyer:
"Firstly, it’s important to note that if you have a current withdrawal instruction from the Access Accounts, you won’t be able to use this feature. If you would like to invest new funds into the Access Accounts, you’ll need to cancel those Withdrawal Instructions first as investors need to be either investing or withdrawing at any time, not both."
No ambiguity there. So to use the SM as a buyer for your QAA account, you have to remove any withdrawal instruction from your 30D and 90D Access Accounts. This odd because the withdrawal instruction is made at the start of the notice period, I believe. So you cannot buy any QAA on the SM and at the same time be working through the notice period on the 90D? Odd.
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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 Aug 8, 2020 14:36:24 GMT
Thank you for those clarifications/predictions/interpretations - as we will find out.
Particularly useful is the idea of the 30D and 90D being treated separately - which is sensible particularly when only the QAA can feed the SM. However, that separation cannot be total, because if you are a buyer:
"Firstly, it’s important to note that if you have a current withdrawal instruction from the Access Accounts, you won’t be able to use this feature. If you would like to invest new funds into the Access Accounts, you’ll need to cancel those Withdrawal Instructions first as investors need to be either investing or withdrawing at any time, not both."
No ambiguity there. So to use the SM as a buyer for your QAA account, you have to remove any withdrawal instruction from your 30D and 90D Access Accounts. This odd because the withdrawal instruction is made at the start of the notice period, I believe. So you cannot buy any QAA on the SM and at the same time be working through the notice period on the 90D? Odd. Sorry, I think that is a misinterpretation. I do not believe that withdrawal instructions on 30DAA/90DAA will prevent you from using the QAA SM. I think the term Access accounts refers to QAA in this context.
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blender
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Post by blender on Aug 8, 2020 15:18:36 GMT
I hope you are right, but with respect, in that case it is not a misinterpretation. If Access Accounts means the QAA only then it is a mis-statement. Unless Humpty Dumpty is in charge of the meaning of words  . |
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dead-money
Rocket to the Moon
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Post by dead-money on Aug 8, 2020 15:24:04 GMT
Trust what SteveT believes. He was one of the three of twenty...
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blender
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Post by blender on Aug 8, 2020 18:14:59 GMT
Trust what SteveT believes. He was one of the three of twenty... I do trust SteveT much more than the scribes of Assetz, who do not seem to know the product. The problem is that the potential buyers will read it and will be put off buying on the SM. That's bad for sellers. Perhaps they should beta-test the FAQs.
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Post by Ace on Aug 8, 2020 20:50:37 GMT
Trust what SteveT believes. He was one of the three of twenty... I do trust SteveT much more than the scribes of Assetz, who do not seem to know the product. The problem is that the potential buyers will read it and will be put off buying on the SM. That's bad for sellers. Perhaps they should beta-test the FAQs. Yep, I've already withdrawn the funds I was leaving on AC to pick up some discounted loans on the basis of that exact wording.
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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 8, 2020 22:42:18 GMT
Trust what SteveT believes. He was one of the three of twenty... Somebody cant count 
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IFISAcava
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Post by IFISAcava on Aug 9, 2020 8:07:16 GMT
All the flipping strategies would seem to me to come at high risk - if you can't flip, your money is stuck, potentially for years. And if you are arbitraging a 0.5 or 1% difference in discounts, you have to turnover (ie put at risk) a lot to make it worth it.
As I have said before, I wouldn't be buying QAA bundled loans for less than double figure discounts, with the expectation of low liquidity and multiple defaults insufficiently covered by the PF.
Whilst the MLA has seen discounts narrow over time, I could even see QAA discounts increase over time as new money dries up and the arbitrageurs have to unload positions.
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dead-money
Rocket to the Moon
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Post by dead-money on Aug 9, 2020 8:27:13 GMT
Trust what SteveT believes. He was one of the three of twenty... Somebody cant count OK may be slightly off. By my reckoning there were 20 beta testers for the new platform, (not counting AC staff), of which only a few (four?) signed the NDA to test the secondary market.
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Mikeme
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Post by Mikeme on Aug 9, 2020 9:18:12 GMT
No real basis for saying this but I suspect that the amount offered at a discount may not be as much as thought. After the original panic the average investor with a smaller amount invested might just think that the interest received is worth the risk. There have been relatively few saying that they would discount and they were the same suspects some of whom have disappeared from the forum.
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Post by Harland Kearney on Aug 9, 2020 13:42:16 GMT
No real basis for saying this but I suspect that the amount offered at a discount may not be as much as thought. After the original panic the average investor with a smaller amount invested might just think that the interest received is worth the risk. There have been relatively few saying that they would discount and they were the same suspects some of whom have disappeared from the forum. I fall into this catagory, although was not panic mongering running around on the board . Initally I was fine to sit with a 8% discount cut possible even 10% if I needed very bad to reallign my exposure, but now with things seeming to have "calmed down"; which in reaility appears to be more of a emotional response than a economic one as these things tend to go. I don't see any reason for me to take a haircut. Before I rally the merry go round for the 10th time on this board. I have confidence in AC to leave a percentage of my portfilio with them. Currently that number sits around 10%, I want to get this down to 5% but I feel this can be achieved purely via repayments from loans, keeping it in a ISA is very nice tax free interest. The only logical reason I can see to panic sell if you need the cash for urgent things such as taxes ect. Alot of time has passed since March, thinking most of the angry lenders who needed the cash have sourced it from elsewhere by now. Or maybe are in Jail for not paying taxes! 
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SteveT
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Post by SteveT on Aug 11, 2020 8:00:45 GMT
I believe* that the system will probably treat the QAA, 30DAA and 90DAA accounts as being separate, so one might have a withdrawal instruction in place in the 30DAA / 90DAA whilst also setting up investment bid(s) in the QAA. I also believe that, whilst the QAA system won't permit both withdrawal offers and investment bids at the same time, it should permit multiple offers (or multiple bids) at different discounts at the same time, up to the total balance in the relevant account (ie. balance in the QAA for selling, balance in Cash for buying). So, if you'd already got an existing £500 withdrawal request (at Par) in the QAA out of a total QAA balance of £1000, you should still be free to set up, say, 5 additional offers of £100 each at 2% / 4% / 6% / 8% / 10% discounts without cancelling the £500 Par "offer". But, if your total QAA balance was £500 (ie. you'd already requested withdrawal in full) then you'd have no remaining balance available with which to set up a discounted offer, meaning you'd have to cancel the existing £500 Par "offer" to start any discounting. The sentence you quote from yesterday's email is consistent with this but open to other interpretations! I think (not certain) that ISA and Standard QAA accounts likely will be considered separate as well, so an optimistic Flipper might seek to buy at good discounts in their Standard QAA whilst offering to sell at lower discounts in their ISA QAA. If successful over time, they might then cancel their outstanding offers / bids and start up again in reverse. *without being permitted to say why! New information* now leads me to conclude that the wording of AC's explanatory emails may well be correct after all and that existing 30DAA / 90DAA withdrawal requests are to be routed via the new AA Marketplace (although at Par). This would mean that any existing 30DAA / 90DAA withdrawals have to be cancelled (with a new option to transfer funds immediately to the QAA if the notice period already has been served) before a discounted QAA investment bid can be created. I still assume that Standard and IFISA accounts will be treated as separate, but cannot test this be certain. *which again, I cannot explain!
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Post by angel19 on Aug 11, 2020 8:08:25 GMT
The only information most of us have is the emails from AC. So best to work on the basis that is a true account of how it will work until we know otherwise. That way we avoid disappointment tomorrow.
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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 11, 2020 9:01:31 GMT
I believe* that the system will probably treat the QAA, 30DAA and 90DAA accounts as being separate, so one might have a withdrawal instruction in place in the 30DAA / 90DAA whilst also setting up investment bid(s) in the QAA. I also believe that, whilst the QAA system won't permit both withdrawal offers and investment bids at the same time, it should permit multiple offers (or multiple bids) at different discounts at the same time, up to the total balance in the relevant account (ie. balance in the QAA for selling, balance in Cash for buying). So, if you'd already got an existing £500 withdrawal request (at Par) in the QAA out of a total QAA balance of £1000, you should still be free to set up, say, 5 additional offers of £100 each at 2% / 4% / 6% / 8% / 10% discounts without cancelling the £500 Par "offer". But, if your total QAA balance was £500 (ie. you'd already requested withdrawal in full) then you'd have no remaining balance available with which to set up a discounted offer, meaning you'd have to cancel the existing £500 Par "offer" to start any discounting. The sentence you quote from yesterday's email is consistent with this but open to other interpretations! I think (not certain) that ISA and Standard QAA accounts likely will be considered separate as well, so an optimistic Flipper might seek to buy at good discounts in their Standard QAA whilst offering to sell at lower discounts in their ISA QAA. If successful over time, they might then cancel their outstanding offers / bids and start up again in reverse. *without being permitted to say why! New information* now leads me to conclude that the wording of AC's explanatory emails may well be correct after all and that existing 30DAA / 90DAA withdrawal requests are to be routed via the new AA Marketplace (although at Par). This would mean that any existing 30DAA / 90DAA withdrawals have to be cancelled (with a new option to transfer funds immediately to the QAA if the notice period already has been served) before a discounted QAA investment bid can be created. I still assume that Standard and IFISA accounts will be treated as separate, but cannot test this be certain. *which again, I cannot explain! Sounds like a bug to me as it would completely defeat the object. I assume all accounts will operate independently and have little evidence to the contrary outside of poorly written guides.
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blender
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Post by blender on Aug 11, 2020 9:46:28 GMT
I believe* that ISA and Standard accounts will be totally separate except for transfers of cash. No reason at all to link them through the SM and every reason not to, regulation-wise. The linkage is in presentation.
*A personal but firm conviction unsupported by any special knowledge.
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