p2pfan
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Post by p2pfan on Mar 23, 2021 20:00:15 GMT
I haven't been able to get hold of anyone at Assetz Capital as usual, so am still none the wiser in terms of the now-closed "Great British Business Account (Series 2)" accounts. I've still got quite a sum of money invested/trapped in it and I'm sure quite a few other lenders have.
On what basis are AC paying back lenders? The account still advertises "6.25% Target Capped Rate" but when I view transactions, they seem to be interest and principal payments from specific loans? So is it along the lines of Manual Lending Account loans?
Is there any way to exit from this account?
My concern is that if I simply have to wait to get my money back (a) it'll maybe take years and years to get even half my loaned sum back and (b) the loans left in the account will be the worst ones, those that have defaulted etc. (e.g. my largest holding in this account is the highly problematic, defaulting Black**** Long***** one).
Thanks.
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dave4
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Post by dave4 on Mar 23, 2021 20:16:21 GMT
Ur stuck in them, till hell freezes over / loan resolves / finishes/ recovery is finished.  In no perpendicular order. |
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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 Mar 23, 2021 20:31:31 GMT
I haven't been able to get hold of anyone at Assetz Capital as usual, so am still none the wiser in terms of the now-closed "Great British Business Account (Series 2)" accounts. I've still got quite a sum of money invested/trapped in it and I'm sure quite a few other lenders have. On what basis are AC paying back lenders? The account still advertises "6.25% Target Capped Rate" but when I view transactions, they seem to be interest and principal payments from specific loans? So is it along the lines of Manual Lending Account loans? Is there any way to exit from this account? My concern is that if I simply have to wait to get my money back (a) it'll maybe take years and years to get even half my loaned sum back and (b) the loans left in the account will be the worst ones, those that have defaulted etc. (e.g. my largest holding in this account is the highly problematic, defaulting Black**** Long***** one). Thanks. Did you try live chat? GBBA has always paid on the basis of individual loan payments so you get payments the same as you would in the MLA though with interest subject to the cap plus on sales any the SM. Exit is only by loans redeeming, selling on the SM where permitted or ultimately through PF covering defaults once recovery efforts have reached a trigger point. Im afraid your concerns are correct, you will have to wait to get your money back, loan recoveries could take years to fully complete, though you should get chunks back when the security is sold, and yes ultimately you will be left with a legacy of defaulted loan remnants until the PF pays out (if it has any money to do so) or they are written off. The specific loan is currently going to take at least a year to hopefully return investors capital & some interest.
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p2pfan
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Post by p2pfan on Mar 23, 2021 20:56:52 GMT
Thanks guys. Appreciate the insights... ...but I am feeling disillusioned now that our money will be trapped in this account forever more, with, as the years go by, an ever-increasing ratio of holdings in problematic loans that will be nigh on worthless. ilmoro "selling on the SM where permitted" - I'm not sure I understood that bit: is there any option at all of selling one's share of GBBA2 or the loans held within it? |
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dave4
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Post by dave4 on Mar 23, 2021 21:07:11 GMT
Currently NO,Historically since they were closed No, in the future  ?.....doubtful.
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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 Mar 23, 2021 21:08:29 GMT
Thanks guys. Appreciate the insights... ...but I am feeling disillusioned now that our money will be trapped in this account forever more, with, as the years go by, an ever-increasing ratio of holdings in problematic loans that will be nigh on worthless. ilmoro "selling on the SM where permitted" - I'm not sure I understood that bit: is there any option at all of selling one's share of GBBA2 or the loans held within it? AIUI AC will seek to sell loans that arent suspended on the SM to MLA investors, maybe the AA, in order to facilitate the return of funds as part of the account winddown process. There is no option for investors to manually 'sell out' of the account or the loans held.
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dead-money
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Post by dead-money on Mar 23, 2021 21:31:37 GMT
At this juncture does anyone have PSA / GBBA2 holdings still in their allocation which aren't suspended and / or defaulted ? (Ignoring non-tradeable micro penny amounts)
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Post by Ace on Mar 23, 2021 22:00:10 GMT
Just loan 508 (McK****n) for me, same in PSA (other than the femto-pence shrap).
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dead-money
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Post by dead-money on Mar 23, 2021 22:15:22 GMT
Yep #508 & #336 two classic case studies in AC's approach to recoveries 
So femto-pennies and suspended defaulted loans is the stinky residual left of PSA / GBBA
I look forward to the IPO documents and their spin on AC's track record of failed account types
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cb25
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Post by cb25 on Mar 23, 2021 22:28:24 GMT
GBBA2: #573 (and PSA), #680, #711, #807 - all show 'A monitoring event has taken place on this loan' within loan but not 'Trading suspended' on loan list.
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dead-money
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Post by dead-money on Mar 23, 2021 22:58:48 GMT
Interesting. Wonder why those loans haven't being mopped up by MLA or AA demand ? ( AAs do hold some amounts already.)
They are tradeable, are making repayments, albeit with some performance concerns and a Med-High risk rating.
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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 Mar 23, 2021 23:22:19 GMT
Yep #508 & #336 two classic case studies in AC's approach to recoveries
You mean defaulted fairly prompted, called in at lenders request and then placed into the hands of Insolvency Practitioners at which point it is largely out of ACs hands and the recovery runs it course, with occasional votes if the IP needs agreement to a proposed course of action (subject to the usual IP back us or sack us caveat). Seem to be fairly model recoveries, though protracted as ever. What would you expect to be done differently?
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dead-money
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Post by dead-money on Mar 24, 2021 8:38:04 GMT
Yep #508 & #336 two classic case studies in AC's approach to recoveries
You mean defaulted fairly prompted, called in at lenders request and then placed into the hands of Insolvency Practitioners at which point it is largely out of ACs hands and the recovery runs it course, with occasional votes if the IP needs agreement to a proposed course of action (subject to the usual IP back us or sack us caveat). Seem to be fairly model recoveries, though protracted as ever. What would you expect to be done differently? Not to be so protracted; seems like these things are drawn out just to stuck all the money out with administrator's fees.
Not to sell properties well below valuation; why does AC defend their valuers so vigourously when nothing ever seems to achieve the supposed security value?
It doesn't seem to be in AC's DNA to admit error.
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dead-money
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Post by dead-money on Mar 24, 2021 8:42:45 GMT
Interesting. Wonder why those loans haven't being mopped up by MLA or AA demand ? ( AAs do hold some amounts already.)
They are tradeable, are making repayments, albeit with some performance concerns and a Med-High risk rating.
MLAs will have had yonks to pick up any of those loans and some at a discount from other MLAers. I’d imagine any MLAer who wanted some have plenty already. As time passes if redemptions continue and nothing much new comes onto the SM some MLAers might increase their exposure further but I’d imagine that’ll be at the margin. As far as I can tell AAs have not been buying anything recently as they’ve prioritised development tranches and returning cash to AA queuers. If ISA money comes in fast and it’s more than required to allow queuers to exit and more than what will probably be only a trickle of new loans then AAs might sweep up the MLA. With only about £4.25m listed on the SM it wouldn’t take much overflow new money to clear out the SM shelves faster than toilet rolls at the start of a pandemic. Yes, but given the pent up demand I'm somewhat bemused as to why these loans haven't already gone. That said, they're not on my buy list and since I can only get a trickle of what is, I'm now reducing my MLA acct size and transferring to another provider. (Out of the frying pan and into the fire!)
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dead-money
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Post by dead-money on Mar 24, 2021 20:29:51 GMT
Hospitality business, so no cash flow and late payments - credit event.
I also notice that AC is now pasting the following text on any capital value downgrades.
"Please note that a discounted capital value is only an estimate of a loan’s capital value based on a perceived higher risk of loss. It will not be enforced on the secondary market for trading in loan holdings between selling and buying Lenders who are free to trade at a price agreed between them. However, it is expected that trades which do occur are most likely to be at the discounted capital value.
If trading in this loan is reactivated, Lenders will be asked to confirm that they have read and understand the information in relation to a capital value discount before they can complete a sale or purchase of any holding in the loan.
We do not accept any responsibility or liability to Lenders for any loss they may incur as a result of holding, buying or selling any holding after they are notified of any potential or actual capital value discount on a loan.
Further information on capital values and risk categories can be found on the Credit Risk Assessment page of our website."
Is this something new? Can one infer that more suspended and defaulted loans might be allowed to be tradeable in the future ? Or is it just arse covering for those downgraded loans which remain tradeable?
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In no perpendicular order.
?.....doubtful. 
