Have we all lost c. 5% on the value of our AA investments?
Aug 16, 2020 12:05:09 GMT
scepticalinvestor likes this
Post by p2pfan on Aug 16, 2020 12:05:09 GMT
I've been trying to sell some AA holdings for up to 2.5% below par for a few days now, but no takers at all.
I'm aware that lenders may be willing to buy into AA for a lower discount in the future as the marketplace settles, but for the last couple of days the buy/sell price seems to have settled at approximately 6% below par.
Therefore, considering it might be impossible to get out without selling at perhaps a 5 or 5.5% discount for a while to come, isn't this is a fairly substantial haircut for us to take?
I appreciate it may sound churlish to say that when the economy has taken a massive hit with the pandemic, but such a haircut is on top of a raft of other negatives from AC such as their new fees, the substantial reduction in the interest rates on AA etc.
Also, what impact do you think the new AA marketplace have on lenders being able to get their money back through the exit route over the last few months i.e. redemptions on loans?
I'd be keen to read your thoughts.
I'm aware that lenders may be willing to buy into AA for a lower discount in the future as the marketplace settles, but for the last couple of days the buy/sell price seems to have settled at approximately 6% below par.
Therefore, considering it might be impossible to get out without selling at perhaps a 5 or 5.5% discount for a while to come, isn't this is a fairly substantial haircut for us to take?
I appreciate it may sound churlish to say that when the economy has taken a massive hit with the pandemic, but such a haircut is on top of a raft of other negatives from AC such as their new fees, the substantial reduction in the interest rates on AA etc.
Also, what impact do you think the new AA marketplace have on lenders being able to get their money back through the exit route over the last few months i.e. redemptions on loans?
I'd be keen to read your thoughts.
