spiral
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Post by spiral on Jan 15, 2015 11:08:02 GMT
pikestaff/sl75, very interesting discussion going on here. If I've understood correctly, I think we may now have the conclusive answer to the rather strange behaviour of what happened a couple of months back.
A borrower requested money at an APR that back calculated to 5.683%. This appears as a borrower request at 5.6% which for arguments sake was £5000. Joe Bloggs comes along with a large sum of money to match the 5.6% but has an amount above and beyond this that remains in the queue, apparantly at 5.6% but in reality at 5.683%. This surplus amount was sufficient that the following morning, when market rate was determined, it triggered a rate of 5.683% but appeared to join the queue of 5.6%. This lead to the bizzarre process that anyone manually adding money at 5.6% was jumping ahead of the market rate money in the queue.
This would explain why we've never seen it before because it requires a surplus of lender money matching an existing borrower request that is sufficient to trigger MR the following morning.
N.B I've used 5.6% in my summary is it equates to the figures pikestaff provided although the real issue occurred surrounding 5.9% offers.
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Post by GSV3MIaC on Jan 15, 2015 14:07:54 GMT
But how did Joe Bloggs manage to list his money at 5.683%when there is no such option on the 'offer up money for lending' screens? Or is there, somewhere I have never yet found, and option to offer money at exactly the rate required to match a borrower's request?
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oldgrumpy
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Post by oldgrumpy on Jan 15, 2015 14:16:32 GMT
I thought we said we'd give Kev an easier ride through 2015 Attachments:
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leonp
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Post by leonp on Jan 15, 2015 14:28:13 GMT
In case it adds anything to the discussion about rates, my offer at 4.5% was converted into a loan at 4.41% - a little misleading?
I'm surprised that my offer at 4.5% was matched to something lower than 4.5%. Am I missing something?
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sl75
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Post by sl75 on Jan 15, 2015 14:58:37 GMT
In case it adds anything to the discussion about rates, my offer at 4.5% was converted into a loan at 4.41% - a little misleading? I'm surprised that my offer at 4.5% was matched to something lower than 4.5%. Am I missing something? You're missing the conversion between "simple" and "annual equivalent" rates. (see the instances of pikestaff doing such conversions earlier on in this thread). A 4.41% "simple" interest rate is, to all intents and purposes, identical to a 4.50% "annual equivalent" rate.
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spiral
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Post by spiral on Jan 15, 2015 20:07:35 GMT
But how did Joe Bloggs manage to list his money at 5.683%when there is no such option on the 'offer up money for lending' screens? Or is there, somewhere I have never yet found, and option to offer money at exactly the rate required to match a borrower's request? Because he matched a pre existing borrowers offer at that rate even though it appears as 5.6% so the assumption here is: 1.existing borrower wishes to borrow £5000 at 5.683% but it appears as a request at 5.6% 2.Joe bloggs matches the existing request with a deposit of £20000. 3.£5000 immediately gets matched, the remaining £15000 goes on offer at what appears to be 5.6% but is really 5.683%. I've never placed an offer such that it matches an already queued offer so am unsure how it behaves but it is possible that all of the money gets offered such that it just matches the required rate which in this case is 5.683%. This would explain what happened last year. If this is how it works, usually there would not be sufficient left in the pot to affect MR in the way that it did last year.
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pikestaff
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Post by pikestaff on Jan 16, 2015 16:13:18 GMT
But how did Joe Bloggs manage to list his money at 5.683%when there is no such option on the 'offer up money for lending' screens? Or is there, somewhere I have never yet found, and option to offer money at exactly the rate required to match a borrower's request? Because he matched a pre existing borrowers offer at that rate even though it appears as 5.6% so the assumption here is: 1.existing borrower wishes to borrow £5000 at 5.683% but it appears as a request at 5.6% 2.Joe bloggs matches the existing request with a deposit of £20000. 3.£5000 immediately gets matched, the remaining £15000 goes on offer at what appears to be 5.6% but is really 5.683%. I've never placed an offer such that it matches an already queued offer so am unsure how it behaves but it is possible that all of the money gets offered such that it just matches the required rate which in this case is 5.683%. This would explain what happened last year. If this is how it works, usually there would not be sufficient left in the pot to affect MR in the way that it did last year. Very clever. This is the only credible explanation I've seen that does not involve a one-off error. If it's right, then it is IMO a bug. The software should put Joe Bloggs' excess funds on offer at 5.6% flat. It shouldn't be too hard to fix. Perhaps westonkevRS could put this to the developers.
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spiral
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Post by spiral on Jan 16, 2015 16:51:21 GMT
Very clever. This is the only credible explanation I've seen that does not involve a one-off error. If it's right, then it is IMO a bug. The software should put Joe Bloggs' excess funds on offer at 5.6% flat. It shouldn't be too hard to fix. Perhaps westonkevRS could put this to the developers. I agree that this would have to be a bug as it would not have intentionally been designed like this but at least I finally got to sleep last night.
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