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Post by honeybadger on Mar 26, 2021 9:33:45 GMT
Hello,
I've read pages and pages of threads below; I hope I can ask a couple of basic questions and get a couple of short opinions. Sorry if this comes out as laziness but I am so confused by what I've been reading and i am in circles, I'm just hoping to get a bit of shape around my own thoughts.
1. Is the reason why people are suggesting putting no new money in because it feels like Assetz have been stacking losses that they will eventually have to offset on some poor bagholders which are probably those in the capped accounts?
2. Is it fair losses are stacked if so? They should be realised when they become losses right? Or at least there should be disclosure that they exist? That's the p2p risk we all signed up to isn't it?
3. I've noted there's no discount being offered in the last month or so putting money in (I've put money in the box but not executed just to see if discounts on offer), is that a sign of things being better, or have they just changed strategy?
4. Some of you guys have amazing figures re transparency but for the life of me I can't find that sort of data on assetz, whearas on loanpad for example it is so easy to find. Anyone mind sharing a link or a nav path on how to find it?
Full disclosure, I've got money in the capped accounts both ISA and non-ISA. Just trying to get my head around what sensible decision to make next. The thing that concerns me most is having seen no losses, yet having people talk about losses, makes me wonder if my sh$t parade is just being deferred. Although I should add it's a bit of cash but it won't make me destitute and I am pretty diversified so, if I have screwed up my diligence I own it, but assetz has been the one I've always found it hardest to do with hence less money than other places. They say nothing, but mainly act like nothing is wrong (withdrawal queues aside, which you have to expect in a pandemic, along with some losses...which is what I am finding confusing).
Slap me if I deserve it but generally, the mood and any insight into the points above and I'd be grateful.
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iRobot
Member of DD Central
Posts: 1,680
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Post by iRobot on Mar 26, 2021 10:40:14 GMT
Hello, I've read pages and pages of threads below; I hope I can ask a couple of basic questions and get a couple of short opinions. Sorry if this comes out as laziness but I am so confused by what I've been reading and i am in circles, I'm just hoping to get a bit of shape around my own thoughts. <snip> Keeping a firm eye on this request (hopefully others will, too!  ), here's my short(ish) opinion. I am still withdrawing using the existing mechanism. I don't (currently) feel the need to accelerate the process using the SM / offering a discount. (Although reserve the 'right' to do so, should my view change - assuming that option remains available.) There are two catalysts to my re-introducing funds into AC's AA accounts. 1) The sustained commencement of new lending. 2) How the wider economic outlook evolves. Both have - to my way of thinking - a minimum 6 months timeframe before they prove themselves. In that time I'm divesting in all my P2P activities - some more proactively than others. This is a reflection of my personal opinions on P2P and the economic outlook rather than a specific view on AC. (And those views are - as you say - amply discussed elsewhere and need not be repeated here.) I may be being overly pessimistic and proven to have be incorrect in my current line of thought... time will tell...
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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 Mar 26, 2021 11:27:20 GMT
Hello, I've read pages and pages of threads below; I hope I can ask a couple of basic questions and get a couple of short opinions. Sorry if this comes out as laziness but I am so confused by what I've been reading and i am in circles, I'm just hoping to get a bit of shape around my own thoughts. 1. Is the reason why people are suggesting putting no new money in because it feels like Assetz have been stacking losses that they will eventually have to offset on some poor bagholders which are probably those in the capped accounts? 2. Is it fair losses are stacked if so? They should be realised when they become losses right? Or at least there should be disclosure that they exist? That's the p2p risk we all signed up to isn't it? 3. I've noted there's no discount being offered in the last month or so putting money in (I've put money in the box but not executed just to see if discounts on offer), is that a sign of things being better, or have they just changed strategy? 4. Some of you guys have amazing figures re transparency but for the life of me I can't find that sort of data on assetz, whearas on loanpad for example it is so easy to find. Anyone mind sharing a link or a nav path on how to find it? Full disclosure, I've got money in the capped accounts both ISA and non-ISA. Just trying to get my head around what sensible decision to make next. The thing that concerns me most is having seen no losses, yet having people talk about losses, makes me wonder if my sh$t parade is just being deferred. Although I should add it's a bit of cash but it won't make me destitute and I am pretty diversified so, if I have screwed up my diligence I own it, but assetz has been the one I've always found it hardest to do with hence less money than other places. They say nothing, but mainly act like nothing is wrong (withdrawal queues aside, which you have to expect in a pandemic, along with some losses...which is what I am finding confusing). Slap me if I deserve it but generally, the mood and any insight into the points above and I'd be grateful. 1. Possibly. However, the predicted losses on bad debt are covered by ringfenced sums from the PF. The capped accounts therefore shouldnt be the bagholders, that will be the manual investors who dont have the PF. 2. The alternative is that all investors in the capped accounts are unable to withdraw sums in bad loans. In theory, the PF is there to prevent that. It is they disclosed that they exist and the amount the PF is covering though not on a loan by loan basis. 3. Better, it means that there is no rush to the exit and the accounts can move towards normality. A little change in strategy with more cash being released to fulfil withdrawal requests. 4. Depends on what transparency you are looking from. Most of it comes from downloading your loan holdings into excel & then doing maths to ascertain information like cash components. AC provides info on PF etc on the Key Account Info page for the account. Personally I am maintaining my position in the AA now on the basis of new lending beginning which should allow a normalisation of the accounts but the option to exit at a low discount if required. Obviously more optimistic than some, and Im usually wrong.
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tjtl
Posts: 232
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Post by tjtl on Mar 26, 2021 11:36:30 GMT
Your post was a good one, no need for a slapping!
It is hard to answer without just giving personal opinions.
Like you I sometimes struggle with Assetz transparency, bt even on sites where there has been good transparency it hasn't protected me from unexpected upsets.
I had significant investments spread over several platforms, and idiotically thought that gave diversity: of course it didn't. It just magnified risk.
For the last months I have been withdrawing cash from every platform, and will continue to do so.
For me the biggest risk is platform failure, and there just isn't enough information on individual platforms to be entirely comfortable they will survive (here speaks someone who got shafted by Wellesley).
The next biggest risk is the economy- something outside platforms' control- and probably outside Government's too- can we be comfortable that the economy will rebound, or is a 4th wave, or a further stomach churning fall in GDP likely- no one knows.
I am putting all my cash in boring FSCS schemes, and will do for at least other quarter. I am giving up 1% to 2% interest (assuming a 4% to 8% annual rate) and gaining several worry-free nights' sleep.
I wouldn't apologise in your post for being unsure of the way forward- anyone who is certain about the next months is someone I would be cautious of. For me safety has become paramount (or at least giving up a couple of per cent of profit)
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Post by honeybadger on Mar 26, 2021 12:09:48 GMT
Thanks very much to the above. My gut tells me to trim the ifisa with them and maybe transfer half if allowed to ground I feel more positive about.
The points about macroeconomic risk regardless of platform are also well received; my own thoughts are hopefully the government realise they will create a cliff edge without the requisite help; yet if they recognise it, regardless, we might be in an environment where loans in general can't charge the rates they used to for a while. But it's mere prognostication.
I'm glad to know I'm not the only one feeling clueless about assetz. I didn't think that level of detail was available to me in a capped/auto account so will attempt to re-approach.
One point about Assetz that does annoy - they should have absolutely stated more clearly than in there FAQ that the auto accounts were not being used to write new loans. It should have been front and centre. That fact in itself is not one that should be buried under clicks and has annoyed me somewhat.
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), here's my short(ish) opinion.
