m2btj
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Post by m2btj on Dec 19, 2020 15:20:50 GMT
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ian
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Post by ian on Jan 14, 2021 19:40:14 GMT
Why do AC consistently penalise borrowers for extending loans with increased interest rates and fees; whilst not passing the benefit onto the vast majority of lenders. This is done against against a backdrop of AC refusing to contribute to the provision fund from their increased margin.
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ton27
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Post by ton27 on Jan 20, 2021 13:29:19 GMT
"we are working to have a staged reduction in the temporary lender fee over a period of four months, starting in February we'll reduce it by 25%, 50% in March, 75% in April and 100% reduction down to zero again in May onwards." [Stuart Law, AC]
Finger crossed.
There is a very positive investor message from Stuart on Seedrs which asks that the information is not disseminated....but it does re-state the fact that Lender Fees will start to reduce in February. There is also mention of lots of CBILS loans and the restart of lending. Will wait and see how this affects us lenders.
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Post by angel19 on Feb 12, 2021 9:14:48 GMT
With discounts on the Access Accounts secondary market at zero for investments I want to understand if the primary and secondary markets are being kept distinct, and whether a zero discount investment is treated as primary or secondary market.
If I invest in the Access Accounts at zero discount does the money go on the primary market, ie to increase the overall funds in the AAs to improve liquidity and be ready for new retail lending, or does it go on the secondary market and just get used to buy out the next in line withdrawing on the secondary market at zero discount, so not improving liquidity.
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jlend
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Post by jlend on Feb 12, 2021 10:28:40 GMT
With discounts on the Access Accounts secondary market at zero for investments I want to understand if the primary and secondary markets are being kept distinct, and whether a zero discount investment is treated as primary or secondary market. If I invest in the Access Accounts at zero discount does the money go on the primary market, ie to increase the overall funds in the AAs to improve liquidity and be ready for new retail lending, or does it go on the secondary market and just get used to buy out the next in line withdrawing on the secondary market at zero discount, so not improving liquidity. My understanding when I read the website is that it buys out the next in line withdrawing at zero discount. I think it would need to say something explicit on the access account market place wording if this was not the case. The "locked in for ever if you don't discount" potential risk will still be the case at the moment if the system didn't work like this. I don't think AC wish to do this, although they would like to restart lending at some stage as they have said.
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scooter
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Post by scooter on Feb 12, 2021 11:01:09 GMT
With discounts on the Access Accounts secondary market at zero for investments I want to understand if the primary and secondary markets are being kept distinct, and whether a zero discount investment is treated as primary or secondary market. If I invest in the Access Accounts at zero discount does the money go on the primary market, ie to increase the overall funds in the AAs to improve liquidity and be ready for new retail lending, or does it go on the secondary market and just get used to buy out the next in line withdrawing on the secondary market at zero discount, so not improving liquidity. I have interest reinvesting in the ifisa and I asked them yesterday on the online chat: if I leave the discount at zero does it just invest in the highest discount available and they said "yes"and that does seem to be the case looking back.
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dead-money
Rocket to the Moon
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Post by dead-money on Feb 12, 2021 13:11:03 GMT
With discounts on the Access Accounts secondary market at zero for investments I want to understand if the primary and secondary markets are being kept distinct, and whether a zero discount investment is treated as primary or secondary market. If I invest in the Access Accounts at zero discount does the money go on the primary market, ie to increase the overall funds in the AAs to improve liquidity and be ready for new retail lending, or does it go on the secondary market and just get used to buy out the next in line withdrawing on the secondary market at zero discount, so not improving liquidity. I have interest reinvesting in the ifisa and I asked them yesterday on the online chat: if I leave the discount at zero does it just invest in the highest discount available and they said "yes"and that does seem to be the case looking back. There is just one market.
If you invest / reinvest you buy up the earliest, highest discounted parts first. Zero discounted parts would only be bought, if no discounted parts are on offer, and then it would be earliest in queue first.
IF you are looking to exit without discount, then either you're waiting on capital repayments, which are now accurring monthly / weekly / whenever, OR you're hoping for zero discount in the market AND to be ahead off everyone else who's had a withdrawal queued at zero discount since March.
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p2pfan
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Full-Time Investor
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Post by p2pfan on Feb 12, 2021 14:30:05 GMT
Question for Stuart:
Is there any intention to increase the current 4.10% p.a. rate for the 90DAA within the next few months?
Do you have a roadmap towards returning it to the 5.75% p.a. rate it was last year?
For the risk profile this account has and potentially significant issues lying ahead with it, 4.10% seems too low.
Thank you.
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dead-money
Rocket to the Moon
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Post by dead-money on Feb 12, 2021 18:14:13 GMT
Question for Stuart: Is there any intention to increase the current 4.10% p.a. rate for the 90DAA within the next few months? Do you have a roadmap towards returning it to the 5.75% p.a. rate it was last year? For the risk profile this account has and potentially significant issues lying ahead with it, 4.10% seems too low. Thank you. Given that AC had to use the Provision Fund cash to cover the 30D and 90D interest at current rates, a rate increase seems highly unlikely.
Given the risks of a diminishing pool of increasingly poorly performing loans, rebuilding and increasing the provision fund needs to be the priority.
FYI, Stuart hasn't posted on the forum since October 2020.
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alender
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Post by alender on Feb 12, 2021 18:20:17 GMT
Question for Stuart: Is there any intention to increase the current 4.10% p.a. rate for the 90DAA within the next few months? Do you have a roadmap towards returning it to the 5.75% p.a. rate it was last year? For the risk profile this account has and potentially significant issues lying ahead with it, 4.10% seems too low. Thank you. Given that AC had to use the Provision Fund cash to cover the 30D and 90D interest at current rates, a rate increase seems highly unlikely.
Given the risks of a diminishing pool of increasingly poorly performing loans, rebuilding and increasing the provision fund needs to be the priority.
FYI, Stuart hasn't posted on the forum since October 2020.
If the lender fee had not been introduced then the PF would be in a stronger position.
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ashtondav
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Post by ashtondav on Feb 12, 2021 18:54:22 GMT
why?
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sl75
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Post by sl75 on Feb 12, 2021 19:29:43 GMT
Because (as implemented for the Access Accounts) it diverted money received from the gross interest from the underlying loans, which would otherwise have gone into the PF.
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ian
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Post by ian on Feb 15, 2021 9:45:37 GMT
Will Management give forward visibility of future intended access account lump sum payments.
This will prevent investors trading blind in the secondary market, and allow investors to manage their cash flow.
Given presently there is no definitive date for access to funds many investors will be reluctant to invest. Communication of your intentions will therefore accelerate the return to normal market conditions.
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ashtondav
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Post by ashtondav on Feb 15, 2021 12:40:45 GMT
As one can sell for a 0.1% discount (usually) I can't see it as a screaming priority. Such a low discount shows there many more wanting to put more "in" than pull more "out".
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ian
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Post by ian on Feb 15, 2021 17:05:04 GMT
As one can sell for a 0.1% discount (usually) I can't see it as a screaming priority. Such a low discount shows there many more wanting to put more "in" than pull more "out".
If many more were wanting to put money in ... normal market conditions would be in play and there would be no discounts.
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