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 Nov 12, 2020 9:53:46 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offer say 10% of my total at some level of discount, does the remaining 90% simply 'sit there', never to to be repaid/withdrawn until I have the opportunity to set up a further instruction?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? Correct, if you have it all set to sell at par you would need to cancel that instruction and create a new one for the portion you want to sell at discount. However, you can have more than one instruction to sell so you could set up a par instruction for the rest. What you cant have is a buy & sell instruction on the same AA. Yes, if you created a par instruction for the 90% it would be at the back of the queue for when the market returns to par, however, you would still receive repayments from loan redemptions pro-rata to your total QAA holdings
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ian
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Post by ian on Nov 12, 2020 9:58:00 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offer say 10% of my total at some level of discount, does the remaining 90% simply 'sit there', never to to be repaid/withdrawn until I have the opportunity to set up a further instruction?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? Funds to be withdrawn @ discount need to be in QAA. Then place a sale instruction, it then requests the discount given the maximum discount presently 3.2% and reducing, you would be giving away 6.8% of your funds needlessly if you set your discount to 10%. The way this is going you will probably get out @ 2% discount 1/12 when automatic reinvestments kick in. If you need the money immediately set @ 3.3% which should return all your funds unless we’re talking 10s of thousands
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cb25
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Post by cb25 on Nov 12, 2020 10:04:33 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? Funds to be withdrawn @ discount need to be in QAA. Then place a sale instruction, it then requests the discount given the maximum discount presently 3.2% and reducing, you would be giving away 6.8% of your funds needlessly if you set your discount to 10%. The way this is going you will probably get out @ 2% discount 1/12 when automatic reinvestments kick in. If you need the money immediately set @ 3.3% which should return all your funds unless we’re talking 10s of thousands If you entered 10% as the maximum discount you were will to accept and 3.2% was available, your request would be matched at 3.2% (unless somebody beat you to it).
E.g. I entered (but didn't execute) an order to sell £250 at 10% and the system showed "At present, based on current invest instructions, you could immediately sell £200.00 at a discount of 3.50% and receive £193.00 of cash"
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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
Posts: 11,330
Likes: 11,549
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Post by ilmoro on Nov 12, 2020 10:18:32 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? Funds to be withdrawn @ discount need to be in QAA. Then place a sale instruction, it then requests the discount given the maximum discount presently 3.2% and reducing, you would be giving away 6.8% of your funds needlessly if you set your discount to 10%. The way this is going you will probably get out @ 2% discount 1/12 when automatic reinvestments kick in. If you need the money immediately set @ 3.3% which should return all your funds unless we’re talking 10s of thousands Think youve misread the post ... he is talking about offering 10% of his invested funds at discount, not a discount of 10%.
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Post by Badly Drawn Stickman on Nov 12, 2020 10:32:12 GMT
Funds to be withdrawn @ discount need to be in QAA. Then place a sale instruction, it then requests the discount given the maximum discount presently 3.2% and reducing, you would be giving away 6.8% of your funds needlessly if you set your discount to 10%. The way this is going you will probably get out @ 2% discount 1/12 when automatic reinvestments kick in. If you need the money immediately set @ 3.3% which should return all your funds unless we’re talking 10s of thousands If you entered 10% as the maximum discount you were will to accept and 3.2% was available, your request would be matched at 3.2% (unless somebody beat you to it).
E.g. I entered (but didn't execute) an order to sell £250 at 10% and the system showed "At present, based on current invest instructions, you could immediately sell £200.00 at a discount of 3.50% and receive £193.00 of cash"
That aspect of the SM is well designed, in that it prevents the unwise on both sides from making disadvantageous trades. Probably still smart not to test it with large sums. I suppose the argument for its current fairly limited display features (None is fairly limited) is that it is essentially a short term solution to an assumed short term problem. I'm just surprised they have not chosen to make it more in keeping with a platform of their stature, display and information wise.
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johns
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Post by johns on Nov 12, 2020 12:21:49 GMT
Thanks to ilmoro, ian, and cb25 for their very helpful responses, not just clear explanations but also helpful advice should I opt to move forward on this. Thanks all!
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SteveT
Member of DD Central
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Post by SteveT on Nov 12, 2020 15:10:20 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) ... 3.1% ...
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Post by aidanw on Nov 14, 2020 8:38:11 GMT
I sold out all my AA holdings last night at an average 3.4% discount which more or less concludes all my p2p investments. Good luck to everyone still invested. Thanks to everyone for your useful insights especially to dead-money (and others) for tracking the discount rate here. |
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mogish
Member of DD Central
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Post by mogish on Nov 26, 2020 12:53:29 GMT
no one buying discounted loans anymore?
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ceejay
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Post by ceejay on Nov 26, 2020 13:43:18 GMT
no one buying discounted loans anymore? Maybe it's hard to get excited, either as a buyer or a seller, when the discount level is in the low threes ... (3.2% for a small sample buy I just tested). Barely worth the trouble/risk if you are a bargain hunter, and not worth losing sleep over if you really need to sell.
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dead-money
Rocket to the Moon
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Post by dead-money on Nov 26, 2020 14:37:59 GMT
no one buying discounted loans anymore? Waiting for the next AC email to move the price...
Still extracting Access Account principal repayments and selling down Manual Lending Account holdings at par, but both are very slow trickles.
As and when AC restart new lending from Access accounts I might reconsider.
But I'd also want to see more transparent and regular details on the provision fund coverage or lack thereof for the deliquent loans.
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mogish
Member of DD Central
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Post by mogish on Nov 26, 2020 14:56:38 GMT
looks like anyone really wanting out has now done so at a higher discount. The tight ones are stilling drawing down at par.
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mogish
Member of DD Central
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Post by mogish on Nov 26, 2020 14:57:08 GMT
like myself:)
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cb25
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Post by cb25 on Nov 29, 2020 15:13:41 GMT
Currently able to achieve 4% discount instantly on buy orders (amount unknown as I have very little in cash)
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Post by Harland Kearney on Nov 29, 2020 15:40:07 GMT
Interest day on Tuesday, I suspect we'll some 0.1-0.5% trading downwards. Least I will be using my interest to pick up better compounding on my investments in the 90daa. I still ponder what the long term plan is for removing the SM market, if at all? Just trade to PAR?
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