QAA Secondary Market discount tracker (AC)
Sept 1, 2020 12:51:34 GMT
savernake, brightspark, and 2 more like this
Post by Harland Kearney on Sept 1, 2020 12:51:34 GMT
All good points iRobot. It should be noted that I have reduced my exposure, not sold out 100%. (reduce it to a very very low 10k level) Before anybody reads my babble, please remember this just my opinion and really has alot of emotionally driven bias to it.
I'm not certain in response to any of your questions honestly; peer to peer was and still is the Wild West. Having been invested since 2016 on platforms of the likes of Lendy, Funding Secure (I successfully timed my exit on both having only £500 in zombie loans with profits into the high four digits) I'm getting cold feet with AC now, primairly the AA's. You just never know what's around the corner. I bet many people who invested in those companies would die at the chance for a 5-7% discount to reduce/cash-out entirely with hindsight.
The long term view would be 5-10 years at current repayment rates. As we have seen since March, the repayments seem to vary greatly. As AC begin to lend more loans inside the AA's it is my understanding that repayments will reduce. This holding is such a small amount, that I really do not mind how long it takes AC to repay me, baring I get my interest and bonus!
I am always run by the stock philosophy of *If you have to question a holding, you shouldn't be holding it* and I feel like that with AC. I also enjoy *If you won't' buy more of what you hold in distress, you shouldn't be holding it*. This has always served me well when investing in the likes of Fundsmith, vanguard on the market ect. These are just opinions since everybody situation is different, whatever helps people sleep at night they should follow.
I have no evidence for this point since AC won't release any types of data to us. This lack of transparency has me constantly on guard, I tend to ally with those on this board that see this as some type of very direct action to obscure/smoke mirrors the reality of the queue. I cannot see how if AA's went to PAR why anybody who is currently holding them and ordering a wind-down wouldn't reduce/exit. I guess confidence would have to greatly increase to get to this point.
AC has created a market type instrument now, make no mistake markets do not act rationally and I really feel uneasy holding anything substantial in this untested/low market cap arena. As somebody again who trades mainly in stocks/shares and fund. If this fund was on the market, I would steer clear...
That being said, when looking at AC compared to its competitors, I believe AC have done a good job in protecting the capital of investors and ensuring the ship didn't sink in the darkest days in 2020. Those who are not exiting are getting paid interest. I would rather be in AC than RS or any of the many winding down.take over companies. However, this doesn't mean I should overexpose myself of course.
I no longer quite understand the exit route for AC (do they have one?) and what the future is, this is likely my main concern. If I was invested in only MLA loans I'd not be selling out, I'd let the AA fiscal pan out and not take much notice.
Therefore I'm reducing my holding.
Ramble over
I'm not certain in response to any of your questions honestly; peer to peer was and still is the Wild West. Having been invested since 2016 on platforms of the likes of Lendy, Funding Secure (I successfully timed my exit on both having only £500 in zombie loans with profits into the high four digits) I'm getting cold feet with AC now, primairly the AA's. You just never know what's around the corner. I bet many people who invested in those companies would die at the chance for a 5-7% discount to reduce/cash-out entirely with hindsight.
The long term view would be 5-10 years at current repayment rates. As we have seen since March, the repayments seem to vary greatly. As AC begin to lend more loans inside the AA's it is my understanding that repayments will reduce. This holding is such a small amount, that I really do not mind how long it takes AC to repay me, baring I get my interest and bonus!
I am always run by the stock philosophy of *If you have to question a holding, you shouldn't be holding it* and I feel like that with AC. I also enjoy *If you won't' buy more of what you hold in distress, you shouldn't be holding it*. This has always served me well when investing in the likes of Fundsmith, vanguard on the market ect. These are just opinions since everybody situation is different, whatever helps people sleep at night they should follow.
I have no evidence for this point since AC won't release any types of data to us. This lack of transparency has me constantly on guard, I tend to ally with those on this board that see this as some type of very direct action to obscure/smoke mirrors the reality of the queue. I cannot see how if AA's went to PAR why anybody who is currently holding them and ordering a wind-down wouldn't reduce/exit. I guess confidence would have to greatly increase to get to this point.
AC has created a market type instrument now, make no mistake markets do not act rationally and I really feel uneasy holding anything substantial in this untested/low market cap arena. As somebody again who trades mainly in stocks/shares and fund. If this fund was on the market, I would steer clear...
That being said, when looking at AC compared to its competitors, I believe AC have done a good job in protecting the capital of investors and ensuring the ship didn't sink in the darkest days in 2020. Those who are not exiting are getting paid interest. I would rather be in AC than RS or any of the many winding down.take over companies. However, this doesn't mean I should overexpose myself of course.
I no longer quite understand the exit route for AC (do they have one?) and what the future is, this is likely my main concern. If I was invested in only MLA loans I'd not be selling out, I'd let the AA fiscal pan out and not take much notice.
Therefore I'm reducing my holding.
Ramble over
)
)
