blender
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Post by blender on Mar 1, 2021 16:54:28 GMT
I think the majority knew this would fly & surely Ablrate did as well. For that reason it would have been logical to have had bid limits, but for some crazy reason, exactly the opposite happened by reducing the initial offering to lenders by £50k. Why on earth Ablrate chose to give underwriters £50k, on this particular loan tranche, presumably at a discount, only to have an agreement to allow all of it to go on the secondary market at par, when the loan is finalised, is anyone's guess. It will only be the lucky ones, who have funds in their account & act immediately upon receipt of the 'bid accepted' email, that will stand any chance. I find myself criticising what happened, even though I got all I wanted. There was and is never a discount on underwriting amounts. There has been £1.75 million of this loan issued prior to this so we assumed that everyone had got what they wanted.. it will teach us to assume... The first million is always the hardest.
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Balder
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Post by Balder on Mar 1, 2021 17:07:22 GMT
I was awake this time and bid on the dot from one account - the platform froze for me for a while but it worked. I swapped to the other account but had left the money in the loan exchange. Doh! So I transferred that back and bid it, by which time there was only £8 left. This process must have taken about a minute, and so if you were there at the end of the countdown and bid straight away, you would have been successful. Seems fair to me. I did and I wasn't.
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star dust
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Post by star dust on Mar 1, 2021 18:55:19 GMT
I was awake this time and bid on the dot from one account - the platform froze for me for a while but it worked. I swapped to the other account but had left the money in the loan exchange. Doh! So I transferred that back and bid it, by which time there was only £8 left. This process must have taken about a minute, and so if you were there at the end of the countdown and bid straight away, you would have been successful. Seems fair to me. I did and I wasn't. Not on this platform, but this discussion reminds me of Collateral and also possibly Lendy (iirc) where it transpired your own speed (internet and device) weren't the only factors at play - distance and 'routes' to servers were at least some of the other influences. Little did I know I was probably better off being disadvantaged at the time
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mrdc
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Post by mrdc on Mar 1, 2021 19:15:10 GMT
Not on this platform, but this discussion reminds me of Collateral and also possibly Lendy (iirc) where it transpired your own speed (internet and device) weren't the only factors at play - distance and 'routes' to servers were at least some of the other influences. Little did I know I was probably better off being disadvantaged at the time Reminds me of a book "Dark Pools: The rise of A.I. trading machines and the looming threat to Wall Street". It discribes the length companies where prepared to go to for a position as close as possible to the exchange they was trading on. Milliseconds count.
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Post by df on Mar 1, 2021 22:15:07 GMT
I was awake this time and bid on the dot from one account - the platform froze for me for a while but it worked. I swapped to the other account but had left the money in the loan exchange. Doh! So I transferred that back and bid it, by which time there was only £8 left. This process must have taken about a minute, and so if you were there at the end of the countdown and bid straight away, you would have been successful. Seems fair to me. I did and I wasn't. The same here. I hit "lend" at 14:00:00. I'm not too bothered about 155 because I'm already in WELs, just wanted to add a little bit more, but if this is going to be a trend it will be very difficult to diversify without premium.
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blender
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Post by blender on Mar 1, 2021 22:35:48 GMT
That's very odd, because at the end of the countdown I went to the bid page, and would have taken a few seconds, and I would have got a bid in on the second account if I had not forgotten the cash was in ASMX. I guess it would have look rather strange for Ablrate to take out £50k and then invoke bid limits.
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Post by df on Mar 1, 2021 23:26:45 GMT
That's very odd, because at the end of the countdown I went to the bid page, and would have taken a few seconds, and I would have got a bid in on the second account if I had not forgotten the cash was in ASMX. I guess it would have look rather strange for Ablrate to take out £50k and then invoke bid limits. I found odd that "processing" took much longer than usual. I remember something of this kind happened a couple of yers ago, but it was fixed. It's probably difficult to follow investors' intensions. Some loans/tranches take ages to fill and some go in no time. In theory, as this is 5th trance, it shouldn't be as popular.
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blender
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Post by blender on Mar 2, 2021 8:39:02 GMT
That's very odd, because at the end of the countdown I went to the bid page, and would have taken a few seconds, and I would have got a bid in on the second account if I had not forgotten the cash was in ASMX. I guess it would have look rather strange for Ablrate to take out £50k and then invoke bid limits. I found odd that "processing" took much longer than usual. I remember something of this kind happened a couple of yers ago, but it was fixed. It's probably difficult to follow investors' intensions. Some loans/tranches take ages to fill and some go in no time. In theory, as this is 5th trance, it shouldn't be as popular. That theory applies to people who intend to hold to term. The last tranche was always going to be popular with those wishing to earn 15% on their stock-in-trade. What alternative is there?
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Post by ablrate on Mar 2, 2021 10:44:22 GMT
Question;
We have had auto-bid on the back end of the system for a long time, but have never made a live. Is that something that would be useful? I know, in these situations that it may actually add to the issue of loans going quickly but what are your thoughts?
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Post by ladywhitenap on Mar 2, 2021 10:54:27 GMT
ablrate Provided it is used in conjunction with a bid limit system in the 0.1-0.5% region then I feel it would be an advantage to be able to auto-bid once the loan details are published. One proviso however it should not have auto scale back in the event of pre-bids exceeding the loan total. I think it was lendy who used to have that and you would not want to repeat anything that they did eh? LW
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Post by Ace on Mar 2, 2021 11:00:13 GMT
Question; We have had auto-bid on the back end of the system for a long time, but have never made a live. Is that something that would be useful? I know, in these situations that it may actually add to the issue of loans going quickly but what are your thoughts? It's probably a yes from me, but as LW says, it very much depends on the details of how it is implemented. Can we have the details please.
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des
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Post by des on Mar 2, 2021 11:05:37 GMT
ablrate Will you be waiving the ISA transfer out fee for those of us who can no longer lend on the primary market if you are going down the pocket money route? maybe you would be better served to have a minimum bid limit rather than a maximum bid limit!
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Post by ablrate on Mar 2, 2021 11:10:55 GMT
ablrate Provided it is used in conjunction with a bid limit system in the 0.1-0.5% region then I feel it would be an advantage to be able to auto-bid once the loan details are published. One proviso however it should not have auto scale back in the event of pre-bids exceeding the loan total. I think it was lendy who used to have that and you would not want to repeat anything that they did eh? LW I hear you....
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Post by ablrate on Mar 2, 2021 11:38:01 GMT
ablrate Will you be waiving the ISA transfer out fee for those of us who can no longer lend on the primary market if you are going down the pocket money route? maybe you would be better served to have a minimum bid limit rather than a maximum bid limit! Bid limits are generally temporary if we do allow them. It is usually an hour or so and then larger bids can be made. We are sensitive to both sides, if all loans were limited it would be difficult to deploy larger amounts of capital. This is part of the reason we are formalizing the underwriter program as it will give us a more stable inflow of cash, which in turn brings more origination and pushes a lot of the timing stress to the Loan Exchange (i.e loans draw down quicker and underwriters make all their allocation for sale at 100%). For those wondering why an underwriter would do it; they do not get a discount, Ablrate shares its revenue on the loan.
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Post by ablrate on Mar 2, 2021 11:44:35 GMT
Question; We have had auto-bid on the back end of the system for a long time, but have never made a live. Is that something that would be useful? I know, in these situations that it may actually add to the issue of loans going quickly but what are your thoughts? It's probably a yes from me, but as LW says, it very much depends on the details of how it is implemented. Can we have the details please. It is very simple at the moment and is based on auto-bidding on primary based on size (how much you want to bid), structure of loan (int only or amortising), what asset it is (property, capital equipment etc). At present priority is based on when you made the bid, first come first served. It doesn't have scale back, it is basically allowing you to bid on a loan without being there, nothing more. We can finesse it, of course.
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