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Post by chris on Aug 20, 2020 9:27:06 GMT
maotw - all I can do is repeat my previous statement that there has been no change to the distribution mechanism, except that it now sends any reinvestments via the marketplace to buy at discounts. Edit: Having reread your post I'll add further clarity that no variables have been changed either, although they are kept under review so I can't say that they'll remain at present levels indefinitely.
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maotw
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Post by maotw on Aug 20, 2020 9:30:46 GMT
maotw - all I can do is repeat my previous statement that there has been no change to the distribution mechanism, except that it now sends any reinvestments via the marketplace to buy at discounts. Sorry (again) But what does that mean - exactly?
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Post by chris on Aug 20, 2020 9:33:05 GMT
maotw - all I can do is repeat my previous statement that there has been no change to the distribution mechanism, except that it now sends any reinvestments via the marketplace to buy at discounts. Sorry (again) But what does that mean - exactly? Sorry, I did just make an edit. It means that the same amounts are being distributed, there's been no change to anything to do with the calculation since the switch to proportional distribution.
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johni
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Post by johni on Aug 20, 2020 9:36:09 GMT
It means if you have automatic re-lending turned on instead of automatically buying at par it now goes to the queue and buys at the lowest discount available.if automatic re-lending is off then money is returned into cash account.
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maotw
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Post by maotw on Aug 20, 2020 9:45:04 GMT
So - the cash that's freed-up by redemptions is being returned by buying-out holdings offered at discount. That can't be right, as I've had a payment on a par sale this morning (tiny) and nothing on my 4 5 & 5.5% sells.
As I said - transparency !!!!!
The word "algorithm" now dropped in favour of "distribution mechanism" - is there significance in this ??
I give-up!
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SteveT
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Post by SteveT on Aug 20, 2020 9:47:55 GMT
Sorry (again) But what does that mean - exactly? Sorry, I did just make an edit. It means that the same amounts are being distributed, there's been no change to anything to do with the calculation since the switch to proportional distribution. I think the question is really how the total £ sums available for distribution each day are being decided, which presumably is a manual process / executive decision on AC's part? eg. If the Borrower in loan #9999 repays £5.0m to AC and 50% of loan #9999 is held by the Access Accounts, there is no automatic distribution of £2.5m to AA lenders. Something / someone is deciding how much of that £2.5m to release for distribution (and when). It is this linkage between borrower repayments and subsequent distributions to AA lenders that appear to have changed (or at least, not yet returned to how it was) since the AA SM launched.
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ceejay
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Post by ceejay on Aug 20, 2020 9:49:06 GMT
So - the cash that's freed-up by redemptions is being returned by buying-out holdings offered at discount. That can't be right, as I've had a payment on a par sale this morning (tiny) and nothing on my 4 5 & 5.5% sells.As I said - transparency !!!!! The word "algorithm" now dropped in favour of "distribution mechanism" - is there significance in this ?? I give-up! I think your two bolded sentences are at cross-purposes. The first bit is about people who have reinvestment turned on. Their purchases are being made at the best available discount, rather than at par, precisely as you would hope. The second bit is about repayments when you have a withdrawal set. All of the repayment you're entitled to will come off your par withdrawal requests first, and again this is correct (you want as much withdrawal at par as possible).
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maotw
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Post by maotw on Aug 20, 2020 9:52:48 GMT
So - the cash that's freed-up by redemptions is being returned by buying-out holdings offered at discount. That can't be right, as I've had a payment on a par sale this morning (tiny) and nothing on my 4 5 & 5.5% sells.As I said - transparency !!!!! The word "algorithm" now dropped in favour of "distribution mechanism" - is there significance in this ?? I give-up! I think your two bolded sentences are at cross-purposes. The first bit is about people who have reinvestment turned on. Their purchases are being made at the best available discount, rather than at par, precisely as you would hope. The second bit is about repayments when you have a withdrawal set. All of the repayment you're entitled to will come off your par withdrawal requests first, and again this is correct (you want as much withdrawal at par as possible). Yes - I wondered ..... but Chris made the statement is response to being asked about the smokey recipe for returning redemptions. P'raps the gift of a goose to chase.
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Post by Harland Kearney on Aug 20, 2020 11:35:09 GMT
I think chris means that those who have reinvestment all repayments are now buying into the SM at a discount. Further removing pressure from the queue automatically.
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Post by davee39 on Aug 20, 2020 12:32:56 GMT
My latest check shows my AA holding 11.3% cash. This marks quite a step change from the 6% it seemed to run at a few months ago.
This may be due to upcoming drawdowns, or may be somehow connected with liquidity.
I have queried this via email.
For anyone who wants to check for themselves I download the CSV of loan holdings and apply the following formula
=SUM(L2:L526)/X
L526 is the last column in the spreadsheet
X is the value of my access account (including cash)
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r00lish67
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Post by r00lish67 on Aug 20, 2020 12:52:03 GMT
My latest check shows my AA holding 11.3% cash. This marks quite a step change from the 6% it seemed to run at a few months ago. This may be due to upcoming drawdowns, or may be somehow connected with liquidity. I have queried this via email. For anyone who wants to check for themselves I download the CSV of loan holdings and apply the following formula =SUM(L2:L526)/X L526 is the last column in the spreadsheet X is the value of my access account (including cash) Yep, that tallies with my calculation this morning too. I've also seen reference to a "package" of loans being refinanced away elsewhere in September, which assuming this comes to fruition could further boost cash balances. As I said the other day, I think we just need some clarity on what the broad plan is for the QAA. Is the intent for QAA to ever resume for retail, or just gradually wind down as loans redeem, they refinance away, or are taken on by institutional/CBILS? It may be that perhaps Assetz have yet to decide for themselves, and it depends on the next few months. The difficulty of course at present is how can the QAA ever attract brand new money if one can buy into it at circa 6% discounts? That would make institutional lending cheaper to take up. Even at much smaller discounts, it's probably not appetising. Anyway, the SM is a great step forward. I just think we're somewhat flying/buying blind (or at least partially sighted) at the moment as we don't know what the intended future of the QAA is. I'm sure we'll be enlightened soon though, and if anyone is sufficiently anxious they can obviously avail themselves of the SM.
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up
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Post by up on Aug 20, 2020 13:03:47 GMT
heads up for anyone daft like me: Whilst awaiting slow release of funds from AA accounts - it makes no sense to have AA repayment of interest set to "reinvest".
Clearly my oversight since UI is clear if overcomplex. Possibly I confused with invest idle funds which they did turn off and I conflated (given it does not mean much with AA) - but probably also that initially only intended to reduce exposure so had part withdrawals and reinvestment on the remainder made sens. I should have reconsidered as it became clear how slow funds were being released and I queued subsequent withdrawal as the months passed. Now it seems I might have released >30% additional since Mar just by having interest go to cash instead of back into 90DAA.
(my 90DAA also is currently 11.3% cash)
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Post by Harland Kearney on Aug 20, 2020 13:05:25 GMT
My latest check shows my AA holding 11.3% cash. This marks quite a step change from the 6% it seemed to run at a few months ago. This may be due to upcoming drawdowns, or may be somehow connected with liquidity. I have queried this via email. For anyone who wants to check for themselves I download the CSV of loan holdings and apply the following formula =SUM(L2:L526)/X L526 is the last column in the spreadsheet X is the value of my access account (including cash) Yep, that tallies with my calculation this morning too. I've also seen reference to a "package" of loans being refinanced away elsewhere in September, which assuming this comes to fruition could further boost cash balances. As I said the other day, I think we just need some clarity on what the broad plan is for the QAA. Is the intent for QAA to ever resume for retail, or just gradually wind down as loans redeem, they refinance away, or are taken on by institutional/CBILS? It may be that perhaps Assetz have yet to decide for themselves, and it depends on the next few months. The difficulty of course at present is how can the QAA ever attract brand new money if one can buy into it at circa 6% discounts? That would make institutional lending cheaper to take up. Even at much smaller discounts, it's probably not appetising. Anyway, the SM is a great step forward. I just think we're somewhat flying/buying blind (or at least partially sighted) at the moment as we don't know what the intended future of the QAA is. I'm sure we'll be enlightened soon though, and if anyone is sufficiently anxious they can obviously avail themselves of the SM.I agree fully, the broad plan for either continuation, transformation or exit the AA's is needed. Leaving it unanswered for too long will likely cause fear, then a increase in cost to exit.
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jlend
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Post by jlend on Aug 20, 2020 14:08:53 GMT
My latest check shows my AA holding 11.3% cash. This marks quite a step change from the 6% it seemed to run at a few months ago. This may be due to upcoming drawdowns, or may be somehow connected with liquidity. I have queried this via email. For anyone who wants to check for themselves I download the CSV of loan holdings and apply the following formula =SUM(L2:L526)/X L526 is the last column in the spreadsheet X is the value of my access account (including cash) Yep, that tallies with my calculation this morning too. I've also seen reference to a "package" of loans being refinanced away elsewhere in September, which assuming this comes to fruition could further boost cash balances. As I said the other day, I think we just need some clarity on what the broad plan is for the QAA. Is the intent for QAA to ever resume for retail, or just gradually wind down as loans redeem, they refinance away, or are taken on by institutional/CBILS? It may be that perhaps Assetz have yet to decide for themselves, and it depends on the next few months. The difficulty of course at present is how can the QAA ever attract brand new money if one can buy into it at circa 6% discounts? That would make institutional lending cheaper to take up. Even at much smaller discounts, it's probably not appetising. Anyway, the SM is a great step forward. I just think we're somewhat flying/buying blind (or at least partially sighted) at the moment as we don't know what the intended future of the QAA is. I'm sure we'll be enlightened soon though, and if anyone is sufficiently anxious they can obviously avail themselves of the SM. My thoughts... AC have been consistent in that if there is demand for manual and access account lenders then manual and access accounts will continue. So at a high level I think that is the strategy. It is up to us. Right now there isn't sufficient demand from lenders for the access accounts although we don't know how big the queue currently is and it is early days for the secondary market. For manual accounts AC are going to try some new loans. AC will need a plan for future retail development loans as right now I doubt they can rely on the access accounts. They will also need a plan for how to handle forbearance on new retail loans for the same reason. Would the manual lenders be happy to fund forbearance and tranche drawdowns in full if needed? Unless things change in terms of lender behaviour then the access accounts are in wind down by default anyway I think.
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Post by stuartassetzcapital on Aug 20, 2020 22:43:26 GMT
I’m not changing what I have said before one iota, so just to be clear about our intentions, over my dead body will we abandon retail investors whilst retail investors need the interest that we produce even more than ever. If retail needs us then we will support that one way or the other in any way possible. Your support in these difficult ones is important for both us and yourselves. Whilst we could move on and thank you for your support to get set up, as others have done, that is absolutely not our intention nor our reason for founding the company, nor is is it fair. We set up to deliver you income in difficult times and we will continue to do that if we are supported.
Institutional funding helps with economies of scale that in turn helps all stakeholders but we will continue to support you in your income fairly alongside other funding sources. Whilst it isn’t easy being held accountable by individual retail investors from time to time, here and elsewhere, it is part of our story and what we signed up to. I’m not sure, however, how much people realise or believe that and how seriously we take the responsibility of delivering you the best capital security and steady healthy income that we can.
I hope that helps. If anyone has any questions at all about our intentions or our fairer growth for all belief then please contact me privately or publicly and I will will respond wherever possible.
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