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 Sept 5, 2020 13:36:24 GMT
I note their terms state the fee will be taken for at least 3 months starting 1/5/20. They are still taking 0.075% per month. I think they are making the most of it, probably enjoying all the benefits the government have offered at the same time. Cant see that in the terms, says "until further notice", key investor info, "for at least 3 months", just the investor fees explanation page needs changing , though says at least three months at top. It was extended for 3 months as per the lender update email mid June, so currently expires after last payment Oct 1. A resumption of lending was a key criteria so first steps taken with the recent loan and another in the pipeline (though currently not until Nov) plus CBILS lending now underway. Time will tell.
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criston
Member of DD Central
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Post by criston on Sept 5, 2020 17:38:12 GMT
I was surprised to see so much available, as the whole loan had been up taken by underwriters in a couple of hours.
Online chat mentioned, that all underwriters must compulsory sell 50% of their allocation on the secondary market. How were you able to determine the whole loan was taken up by underwriters ? How much extra interest do underwriters tend to get ? Do the underwriters pay the o.9% pa fee ?
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dead-money
Rocket to the Moon
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Post by dead-money on Sept 5, 2020 20:35:04 GMT
I was surprised to see so much available, as the whole loan had been up taken by underwriters in a couple of hours.
Online chat mentioned, that all underwriters must compulsory sell 50% of their allocation on the secondary market. How were you able to determine the whole loan was taken up by underwriters ? How much extra interest do underwriters tend to get ? Do the underwriters pay the o.9% pa fee ? The underwriters aren't retail investors such as you and I; they fund AC's loans prior to them becoming available to retail investors.
Typically they buy loan parts at below par via an auction process; but have an obligation / intent to sell-on for a quick profit.
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Post by Ton ⓉⓞⓃ on Sept 5, 2020 21:12:00 GMT
In the recent past some retail investors have "stepped up" to underwriter, you had to commit I think it was £250k as a minimum. There were several other requirements etc. I'm sure some of this would've changed over time.
There's the prospect of another new loan; renewed signatures a couple of days ago due to be drawn in Nov. Carehome Development 24months. Originally it was in that list from about a year ago or more. No details tho'.
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Post by honda2ner on Sept 6, 2020 10:11:30 GMT
The Carehome loan isn't going to set my pulse racing but then it's so small it might get funded by people taking a small bite for diversification, that LTV is impressively low. I might chuck a couple of hundred in and hold to maturity just to balance my other high risk stuff.
Had to smile at all the other pre covid loans in the pipeline list, every single one of them is AA fodder so won't be going anywhere this year unless AC do another cashback deal for new funds and balance that against restarting AA lending. With the SM drawing funds from the MLA during the panicked seller sessions the interplay between the 2 accounts could get interesting. The recent spike in discounts could have been caused by the new loan in the MLA, I bought a lot of sweet MLA loans at a small discount just before and during the underwriter auction so wasn't buying a penny in the AAs, now everyone has had their fill of the new loan the discounts and available to buy amounts in the MLA are dropping so I'm looking at the discounts in the AA again.
I suspect that if a cashback deal was offered the MLA would see nearly all the new money, discounts and availability would drop further, moving more money from the MLA over to the AA discount market. Question is can AC afford it and whilst the admin charge is there it looks like robbing Peter to pay Paul so morally repugnant to say the least.
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puddleduck
Member of DD Central
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Post by puddleduck on Sept 6, 2020 10:20:13 GMT
I suspect that if a cashback deal was offered the MLA would see nearly all the new money, discounts and availability would drop further, moving more money from the MLA over to the AA discount market. Question is can AC afford it and whilst the admin charge is there it looks like robbing Peter to pay Paul so morally repugnant to say the least. Cashback has usually been paid for from AC's monitoring fees I seem to remember from previous promotions. I suspect with so much forbearance recently, that cupboard is looking a little bare. I don't think cashback would have the hoped for response - Ratesetter tried this in March when their liquidity started drying up and that obviously didn't work out. That said if AC offered another 1/2% deal like the summer / Christmas cashback deal they offered back in 2018 I'd be all over it.
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