ceejay
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Post by ceejay on Nov 11, 2020 11:23:23 GMT
Is anyone on this board buying at 4%? And if so your reasoning. I'm buying at 4%, in small quantities, on one of my accounts. My reasoning is that, having decided that (for this account at least) I am sticking with the AC AAs, the only rational approach right now is to keep recycling - withdrawals turned on, get some out at par, put it back in at whatever % is available, rinse and repeat. IF you are planning to stay in for the medium to long term, I'd say this is a sane approach ... if, and only if, you have the spare time for what is a small marginal gain. Whether that counts as "buying" in your book I couldn't say, but if there are enough people doing this then it would create at least some demand at almost any price greater than zero. ETA: Having said "almost any price", I was just offered 3.6% which I declined...
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Balder
Member of DD Central
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Post by Balder on Nov 11, 2020 12:44:20 GMT
Blimey. I feel I’ve been giving this stuff away when selling at steps down from 6.1% to 3.8%. Latest nibble sold has been at 3.5%!!!! “ Withdrawal From Quick Access Account ... With A 3.50% Discount“ Each to their own delusion about what constitutes value ;-) Keep buying, I'm selling
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ian
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Post by ian on Nov 11, 2020 12:52:17 GMT
I think it’s very much down to the individuals liquidity requirements, view as to long term viability of this pLatform and opportunities elsewhere. If your happy for 25-50% of your capital to be locked in for say 2 years a 8% return from buying in @ 4% discount (assuming rates return to normal within that timescale).
I think the majority of investors are now happy to ride this out and therefore discounts will halve again over the next couple of months.
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rogedavi
Member of DD Central
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Post by rogedavi on Nov 11, 2020 13:00:59 GMT
I have sell instructions at 0.1 increments and they all just got taken out down to 3.5%.
I think those that ride this out will probably do okay, but one thing I have come to realise is that i do not TRUST Assetz Capital with my money
...as J.P.Morgan once said “A man I do not trust could not get money from me on all the bonds in Christendom", so in the words of Duncan Bannatyne, "I'm oot!".
Former 6 figure investor, now focused on Return of Capital, rather than Return on Capital.
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cb25
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Post by cb25 on Nov 11, 2020 13:56:00 GMT
I have sell instructions at 0.1 increments and they all just got taken out down to 3.5%. I think those that ride this out will probably do okay, but one thing I have come to realise is that i do not TRUST Assetz Capital with my money ...as J.P.Morgan once said “A man I do not trust could not get money from me on all the bonds in Christendom", so in the words of Duncan Bannatyne, "I'm oot!". Former 6 figure investor, now focused on Return of Capital, rather than Return on Capital. Loan #1038 has just repaid over £1M, with the MLA portion already distributed. I wonder if some of that was re-invested into the AAs, causing the drop in the discount rate by buying up the stuff above 3.5%.
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ian
Posts: 342
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Post by ian on Nov 11, 2020 14:06:03 GMT
I have sell instructions at 0.1 increments and they all just got taken out down to 3.5%. I think those that ride this out will probably do okay, but one thing I have come to realise is that i do not TRUST Assetz Capital with my money ...as J.P.Morgan once said “A man I do not trust could not get money from me on all the bonds in Christendom", so in the words of Duncan Bannatyne, "I'm oot!". Former 6 figure investor, now focused on Return of Capital, rather than Return on Capital. Loan #1038 has just repaid over £1M, with the MLA portion already distributed. I wonder if some of that was re-invested into the AAs, causing the drop in the discount rate by buying up the stuff above 3.5%. Your probably right irrespective of people’s thoughts of AC if there is no bettter option available people will invest all the way down to zero
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ashtondav
Member of DD Central
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Post by ashtondav on Nov 11, 2020 14:57:33 GMT
Interesting to hear those who say AC can’t be trusted. Of my major investments in p2p I much prefer AC’s approach in this pandemic to that of RS and FC. Zopa is an exception of course as it is business as usual there, except for lower returns. Thankfully I largely exited LWorks and FS.
i have no pressing need for return of capital, so interest payments are my priority. However I could currently sell on the secondary market for c£2,400 and I’ve had £8,000 of interest so not unhappy even if “forced” to sell.
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dead-money
Rocket to the Moon
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Post by dead-money on Nov 11, 2020 17:58:35 GMT
I think it's less about trust persay and more about the style and tone of their communications with lenders, both via video / email and on this forum.
That said it's apparent they have a large capital base of inactive investors in the Access accounts, content to sit things out, whilst us forumites get hot under the collar and fiddle around the edges.
Given you can't get more than 1% in an easy access FSCS protected account, many are willing to risk liquidity and possible capital loss for 4%, some of my family included.
Although I am beginning to question the value of time spent on my MLA account, which yields 7.2% after the lender fee, which might be better spent elsewhere.
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dave4
Member of DD Central
Cynical is a hobby not a lifestyle
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Post by dave4 on Nov 11, 2020 18:28:17 GMT
Buy 3.4% discount as of 18.28
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rscal
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Post by rscal on Nov 11, 2020 19:22:06 GMT
Buy 3.4% discount as of 18.28 3.4 [buy] to 3.8 [sell]
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Post by aidanw on Nov 11, 2020 20:08:26 GMT
Just sold some @ 3.5%
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Post by Ton ⓉⓞⓃ on Nov 11, 2020 22:52:46 GMT
Buy 3.4% discount as of 18.28 Buy 3.36% £15k - 22.48
Total MLA holding for AC dropped a Million from £105mm to £104mm
Total AA's holding for AC dropped a Million from £213mm to £212mm - But these two sets of figures are rounded to the nearest million so it could be as low as half a million and as high as 1.5million.
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sl75
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Post by sl75 on Nov 11, 2020 23:31:14 GMT
Total AA's holding for AC dropped a Million from £213mm to £212mm - But these two sets of figures are rounded to the nearest million so it could be as low as half a million and as high as 1.5million.
I get a current total of all the access accounts (including the special promotional ones that I can't see, of which I'm aware of at least two!) of £215954145.9
This can (currently) be calculated in Excel from any loan book download of an access account using a formula like
=[MY TOTAL]*10000/MODE(M:M)
replacing [MY TOTAL] in the formula with the exact amount shown as "un-rounded value" when hovering over the total investment. The number of significant figures in the result will be comparable to the "un-rounded value" you entered.
This works because (as previously separately determined, and which still seems to hold today), the portfolio that backs the access accounts holds exactly £10,000 of several loans - it's the most common exact amount. Other scaling methods will work as long as one can be sure of at least one amount held by the access accounts.
I'd not done this calculation recently though, so can't tell you what it changed from... anyone who has kept historic loan book downloads (and knows the exact balance of the relevant access account at the time of the download) could re-create the value though.
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SteveT
Member of DD Central
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Post by SteveT on Nov 12, 2020 7:57:12 GMT
Buying discount down to 3.3% this morning. Likely to continue to drift lower is my prediction, before stabilising around the 1% level (ie. approx. 3 months' interest equivalent)
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johns
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Post by johns on Nov 12, 2020 9:38:47 GMT
Can someone please clarify for me, how the SM works on the QAA. I have all my investment set to withdraw at par (i.e. the default scenario when the SM came into effect). Is my understanding correct that should I wish to sell some portion at a discount, then I must first cancel my existing instruction? If that is so, and subsequently I decide to offer say 10% of my total at some level of discount, does the remaining 90% simply 'sit there', never to to be repaid/withdrawn until I have the opportunity to set up a further instruction? I have understood that you can only have one withdraw instruction at a time. Finally, are there any 'queueing' implications whereby the remaining 90% would go to the back of the queue?
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