dead-money
Rocket to the Moon
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Post by dead-money on Apr 9, 2021 22:37:44 GMT
Can anyone make head or tail of the table and explanations ?
Even before the poor choice of font and image quality, they could have designed the layout better. Maybe a flowchart even!
The page seems to lack any explanation of how to know or calculate the maximum, higher, lower and minimum funding levels.
Is AC going to implement a sea-change from their usual opaqueness and give lenders this information? A four colour signal at least ?
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Post by Ton ⓉⓞⓃ on Apr 12, 2021 19:49:11 GMT
Caught me out too - at the bottom of the page it says it's launching end of month.
It's more info than banks give - but in p2p we need more info.
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sl75
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Post by sl75 on Apr 12, 2021 21:05:43 GMT
It looks to be an exceptionally complicated way of saying that they need to keep a certain level of uninvested cash in the accounts for operational reasons. Too much, and they'll bring in measures to stop new investment; too little, and they'll bring in measures to restrict withdrawals and avoid the accounts investing in new loans (the latter being what we currently have).
It doesn't explicitly mention the other measures they traditionally used to manage the levels of uninvested cash - as I recall they originally claimed that the access accounts only held the most liquid loans on the marketplace, which could be sold on short notice to generate as much liquidity as would ever be needed, and their secret clever algorithm would automatically make sure this remained the case - oh how we laugh now at the naivety back then... hopefully AC have now learned their lesson that they can't fix a fundamental structural problem with a market using a "clever algorithm".
For myself, I've been waiting for new loans to emerge for some time now, and despite increasing my per-loan maximum investment amounts and/or minimum acceptable interest rates for MLA several times, I still can't keep all the money invested, so I've now parked a sizeable chunk in the 30DAA, with a couple of times as much again in an external bank account. With the loans pipeline essentially completely empty (except for one still allegedly hanging on from last year), I can't see them picking up the new loans volume anything like in time to prevent it swinging very rapidly from "under-funded" to "over-funded".
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