p2pfan
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Post by p2pfan on Jan 29, 2021 16:43:58 GMT
I've been trying to contact Assetz Capital for days now but they never pick up the phone to any number or return messages asking to be called back, so I thought I'd see if anybody can share any possible insights here.
I have lent a large amount of money via a 90-Day Access Account, but I don't believe it is worth it for a mere 4.10% p.a. return. It was slashed from 5.75% p.a. last year as most of you are aware.
A significant ratio of the loans within 90DAA are the very same as those in ML, but they often pay circa double the return on ML direct loans. On other platforms as well, I am getting significantly higher than 4.10% on direct loans with the same or similar risk profiles.
Also, from what I can see, the 90DAA accounts are likely to be left with a higher and higher ratio of toxic 'bad debt'.
I've been hanging on for news about 90DAA and 30DAA accounts eventually having their rates increased in the direction of where they used to be - just as we've received about AC gradually reducing their fees - but there hasn't been any.
Do you think there is any prospect of the 90DAA accounts having their rates increased from 4.10% anytime soon?
Thanks.
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ashtondav
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Post by ashtondav on Jan 29, 2021 16:56:17 GMT
Until they require more retail funds and restart lending, no. Maybe sometime in summer.
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ilmoro
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'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 Jan 29, 2021 17:32:39 GMT
I've been trying to contact Assetz Capital for days now but they never pick up the phone to any number or return messages asking to be called back, so I thought I'd see if anybody can share any possible insights here. I have lent a large amount of money via a 90-Day Access Account, but I don't believe it is worth it for a mere 4.10% p.a. return. It was slashed from 5.75% p.a. last year as most of you are aware. A significant ratio of the loans within 90DAA are the very same as those in ML, but they often pay circa double the return on ML direct loans. On other platforms as well, I am getting significantly higher than 4.10% on direct loans with the same or similar risk profiles. Also, from what I can see, the 90DAA accounts are likely to be left with a higher and higher ratio of toxic 'bad debt'. I've been hanging on for news about 90DAA and 30DAA accounts eventually having their rates increased in the direction of where they used to be - just as we've received about AC gradually reducing their fees - but there hasn't been any. Do you think there is any prospect of the 90DAA accounts having their rates increased from 4.10% anytime soon? Thanks. If you want to contact Assetz use the live chat. The rate is lower because the risk is lower due to the provision fund. While I think the condition of the loan book may allow an increase in rates, with CBILS funding loans and majority of loans resuming normal repayment profiles, there are other factors that may not ... ongoing uncertainty from pandemic, especially when govt support measures being to be removed, furlough, insolvency protections etc, interest rates falling in general market and specific P2P/autoinvest products market, need to boost provision fund. The logical option is to initiate a withdrawal which will then allow you to assess the situation in 90days.
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p2pfan
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Post by p2pfan on Mar 15, 2021 21:49:03 GMT
ilmoro thank you for sharing your insights. Useful. Yes, I had queued my investment for withdrawal, so I had 90 days to think about it. I eventually managed to get hold of someone at AC but they weren't able to share any meaningful info. I read between the lines that the 4.10% p.a. rate is not likely to change for a while. I've got a substantial sum invested in the 90DAA and am reflecting on my long-term strategy. While the reduced 4.10% p.a. was acceptable for a challenging period during a pandemic, I don't believe it's a fair return for the risk-reward ratio with the portfolio of loans as they stand and will likely to be going forward. On top of that there is also the very real risk in P2P of platform risk, with so many P2P platforms suddenly having gone under. Among the borrowers in the Access Accounts there are a considerable number of higher risk property development projects which could go awry (as the multi-million pound Bl*ck**re property development loans on AC have done), a lot of businesses such as retailers that will go bust when they eventually stop getting pilefuls of of temporary COVID-19 handouts and can buy time with reduced business rates etc., and both of those will very unfortunately lead to an increased ratios of defaults. As regards provision funds, they are of questionable value when one truly hits the buffers and unlikely to provide sufficient protection to be worth getting a few percent less p.a. than the same/similar loans one can invest in manually on both AC and other platforms. Anybody else got any insights into what direction the interest rate for the 90DAA could go over the medium term?
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iRobot
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Post by iRobot on Mar 15, 2021 22:57:28 GMT
Anybody else got any insights into what direction the interest rate for the 90DAA could go over the medium term? No insights, I'm afraid. I have an opinion but instead I'd ask you a question: Given the possible outlook you have outlined, what would the interest rate need to be to keep you invested? On to opinion ... The (£-weighted) average interest rate of the entire current loan book - warts and all - is 8.12% That average for the most recent 50 loans (gauged imperfectly, I think, by loan ID) is 7.08%. As far as I am aware, the 90DAA was launched at a rate of 5.75% on 22/02/2019 and the previous 50 loans (remaining on the on book so, again, imperfect) averaged 7.74% when £-weighted. If - and that's a big 'if', imo - rates were to increase medium term, then given the broader backdrop of falling interest rates it seems unlikely - to me, at least - that they'll return to 5.75%. Perhaps the best that might be hoped for is five or maybe 5.25%? Back to my question; would a 1.15% uplift in rates sufficiently offset the increasing risks as you perceive them? Each to their own, but my positioning on this one is that when the options are felt to be: a) make a mistake, withdraw and lose interest; or b) make a mistake, remain invested and lose capital -- I take the option which sees the capital back in my bank account and me living to play the game another day ....
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ton27
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Post by ton27 on Mar 18, 2021 10:36:52 GMT
Above post vote results in. 100% for “jam tomorrow “. Well that’s emphatic! I have given up on voting - the wording AC uses creates such a bias and the options are so unattractive that it not worth the effort of reading them.
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dave4
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Post by dave4 on Mar 18, 2021 10:53:03 GMT
That's just playing into there "do what we want" hands.
"note"
"Feel the same at times"
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ton27
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Post by ton27 on Mar 18, 2021 12:31:52 GMT
i know but it is just so frustrating putting up with the nonsensical way AC deal with investors - mostly in my view to protect themselves.
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dave4
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Post by dave4 on Mar 18, 2021 17:29:35 GMT
For half a token im sure someone would have told you Deees  .
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