Ace
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Post by Ace on Feb 13, 2023 19:47:50 GMT
| LISTING DATE | LATEST FUNDING DATE | | 13/2/23 | 15/10/22 | | 23/1/23 | 29/10/22 | | 19/1/23 | 22/11/22 | | 12/12/22 | 13/10/22 |
Thanks, though the first row should have 15/11/2022. Are the other dates correct? Ah, yes, my mistake. Yes, the others are correct.
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dave4
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Cynical is a hobby not a lifestyle
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Post by dave4 on Feb 13, 2023 20:11:53 GMT
new loan announced auto suck lend invest date now 15 nov 2022  . |
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Post by Penny Pincher on Feb 14, 2023 10:28:10 GMT
Blend's auto lend is back to the "it sucks" state. They've just announced a new loan at 8% pa for 19 months. There's no mention of the fact that the effective rate is 6.9% pa at best owing to the forced cash drag of at least 3 months. Utter madness. It is frustrating when trying to get cash deployed for the first time but, providing you keep the auto lend topped up and loans are reasonably frequent, the massively reduced rate should only be suffered once. An optimist may look at this as a reward for loyal frequent investors. Personally, I feel it adds a unfair pressure to participate in every loan. Or is there a way of skipping loans whilst retaining your place in the queue?
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Ace
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Post by Ace on Feb 14, 2023 10:37:46 GMT
Unfortunately, it's not true that you only suffer the cash drag once. You have to suffer it for every loan, except for SM purchases or very large loans that have enough for manual selection.
For instance, if you wanted to put £5k in every loan...
To have invested in this loan you would need to have had that cash on the platform for at least 3 months. As soon as the announcement was made (yesterday) you would need to put another £5k in your account. Otherwise you would be kicked out of Autolend when your first £5k was allocated to the loan today. That new £5k would have to sit there suffering from cash drag until the next loan is announced. Even then, if the next loan is small you may not get an allocation.
BN think that the solution is to get more loans, but the real solution is to fix the ridiculous Autolend mechanics that require you to suffer massive cash drag.
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matt64
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Post by matt64 on Feb 14, 2023 11:43:37 GMT
Once an investor is at the front of the queue then the funds should be invested more quickly with less cash drag for amounts deposited afterwards. It's just tricky to ensure deposits are made before the autolend is switched off. An extra £1k can be deposited to avoid falling out of the queue after a single investment though that increases cash drag to some degree.
Perhaps they should apply the queue per each £1k deposited to make it fairer on those who've only just switched autolend on, as currently there is an advantage to those who've drip-fed money over a longer period of time. They could reduce the maximum amount for autolend down to only £1k if necessary. Those with larger amounts to invest can always invest elsewhere if needed.
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Ace
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Post by Ace on Feb 14, 2023 12:05:06 GMT
Once an investor is at the front of the queue then the funds should be invested more quickly with less cash drag for amounts deposited afterwards. It's just tricky to ensure deposits are made before the autolend is switched off. An extra £1k can be deposited to avoid falling out of the queue after a single investment though that increases cash drag to some degree.
Perhaps they should apply the queue per each £1k deposited to make it fairer on those who've only just switched autolend on, as currently there is an advantage to those who've drip-fed money over a longer period of time. They could reduce the maximum amount for autolend down to only £1k if necessary. Those with larger amounts to invest can always invest elsewhere if needed.
That's only true if your requested autolend amount is £1k. As soon as your balance drops below your requested autolend amount you are removed from the queue. So, in the example above you would need to deposit the full £5k and suffer cash drag until the next loan to avoid dropping to the back of the queue.
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Post by Penny Pincher on Feb 14, 2023 17:03:21 GMT
| LISTING DATE | LATEST FUNDING DATE | | 13/2/23 | 15/11/22 | | 23/1/23 | 29/10/22 | | 19/1/23 | 22/11/22 | | 12/12/22 | 13/10/22 |
Using these dates for the last four loans, let us assume that; - the loan in December was the first you participated in and that it suffered a 90 day cash drag
- you top up your chosen auto lend amount the day before each loan
- you receive a full allocation each time
then the second loan suffers a disappointing 39 days drag, the third loan suffers an acceptable 5 days drag and the fourth an uncomfortable 21 days. Clearly this is less than ideal but it would take a dearth of loans to repeat the initial 90 day drag. Perhaps a better way of looking at it is that the annual cost of auto-lend is equal to the return you might otherwise get from your chosen auto-lend amount, were it not sitting idle in the queue.
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Ace
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Post by Ace on Feb 14, 2023 17:14:03 GMT
| LISTING DATE | LATEST FUNDING DATE | | 13/2/23 | 15/11/22 | | 23/1/23 | 29/10/22 | | 19/1/23 | 22/11/22 | | 12/12/22 | 13/10/22 |
Using these dates for the last four loans, let us assume that; - the loan in December was the first you participated in and that it suffered a 90 day cash drag
- you top up your chosen auto lend amount the day before each loan
- you receive a full allocation each time
then the second loan suffers a disappointing 39 days drag, the third loan suffers an acceptable 5 days drag and the fourth an uncomfortable 21 days. Clearly this is less than ideal but it would take a dearth of loans to repeat the initial 90 day drag. Perhaps a better way of looking at it is that the annual cost of auto-lend is equal to the return you might otherwise get from your chosen auto-lend amount, were it not sitting idle in the queue.Yes, if you play the game perfectly (don't miss out on getting funds credited within the day of the new loan listings) that's as good as you can do. The impact on your returns will depend on how many loans you fund. The more loans the less the impact.
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Ace
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Post by Ace on Feb 14, 2023 17:39:42 GMT
Using these dates for the last four loans, let us assume that; - the loan in December was the first you participated in and that it suffered a 90 day cash drag
- you top up your chosen auto lend amount the day before each loan
- you receive a full allocation each time
then the second loan suffers a disappointing 39 days drag, the third loan suffers an acceptable 5 days drag and the fourth an uncomfortable 21 days. Clearly this is less than ideal but it would take a dearth of loans to repeat the initial 90 day drag. Perhaps a better way of looking at it is that the annual cost of auto-lend is equal to the return you might otherwise get from your chosen auto-lend amount, were it not sitting idle in the queue.Yes, if you play the game perfectly (don't miss out on getting funds credited within the day of the new loan listings) that's as good as you can do. The impact on your returns will depend on how many loans you fund. The more loans the less the impact. To add a bit more colour to this. Assuming average annual rates of 8%. If you had 20 active loans it would reduce your average annual return to about 7.6%; if you had 3 active loans it would reduce your average return to about 6%.
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Ace
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Post by Ace on Feb 20, 2023 13:00:50 GMT
Just as I'd decided to give up on Blend they announce a reasonable looking loan (I haven't looked in detail) that's large enough to have no autolend limits, which usually means there will be some available for manual selection if you're quick. It will probably take out a fair bit of the auto queue, so should put anyone switching on Autolend now unusually nearer the front. I think I'll stick to my guns and move my funds to an IFISA, but have to admit to being tempted.
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Post by Penny Pincher on Feb 20, 2023 13:14:52 GMT
I'm persevering with them on the grounds of platform diversification only.
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a0010402
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Post by a0010402 on Feb 20, 2023 22:32:43 GMT
Personally not liking the H******** loan about to go on sale right now... so turning AI off, and it will be back of the queue for me when [if] I turn it back on.
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Ace
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Post by Ace on Aug 14, 2023 19:39:07 GMT
Another new loan tomorrow for anyone who's been happy to have their funds suffering cash drag for the last 5 months. Effectively reducing a 9.5% 12 month loan to a 6.7% 17 month loan.
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dave4
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Post by dave4 on Oct 17, 2023 16:32:42 GMT
There is still a slice of this weeks offering, was offered open auto and manual. Is this the end of the autolend cash mountain sized, 6 month drag?. Or just the slightly disappointing 10% returns.?
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Ace
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Post by Ace on Oct 17, 2023 16:54:32 GMT
There is still a slice of this weeks offering, was offered open auto and manual. Is this the end of the autolend cash mountain sized, 6 month drag?. Or just the slightly disappointing 10% returns.? More likely due to the larger loan size.
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