mogish
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Post by mogish on Oct 20, 2022 19:34:18 GMT
I note that the lowest new loan interest rate since 1607 is 6.50%
Fortune favours the brave and there is also a thin line between brave and stupid. Every loan which isn't defaulted or suspended has available units now. Apart from my train crash loans in the business accounts protected by a provision fund I only have a few loans left that AC can't cock up, I'm confident.
I wish i was confident in getting anything back fron gbba. £300 odd been sitting doing nothing for ages. To be fair out of about 14 defaulted loans, 2 make up most of the outstanding sum.
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Post by Ton ⓉⓞⓃ on Oct 20, 2022 22:32:46 GMT
There are 13 under 6.5% in the pipeline. What’s the betting the will not draw down or have their rate increased?
Interesting point. I'm not certain, but I wonder if AC has an agreement to issue the loans at the rates stated, no idea how or if they can back out of it. I noticed a few days ago (on the 6th) that the number of loans sitting in the Pipeline suddenly drop by four* or so. They may come back when they're closer to drawing, but I suspect they might've gone over to Institutional Lenders as so much is up for sale already
*It unusual for the Pipeline Total to decrease by more than just one loan at a time, the last time we had more than one "going", was during lockdown. Having said that it (Pipeline Total) has gone down by one today.
29.11.22 Update on the above - I'm fairly sure that when proposed loans disappear from the pipeline when/if, they do or can re-appear with higher or lower rates of interest
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trevor
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Post by trevor on Nov 28, 2022 21:30:29 GMT
I have concerns about the future for AC retail investors particularly the IA account. Currently AC instant access is paying 3.75%. Rising base interest rates means that fairly soon FSCS qualifying accounts will be nearly par with AC IA. Ordinarily you would expect AC to raise the IA interest rate. But with a large proportion of the lender rates being 5% there is very little room for manoeuvre to increase AC IA rate. As a consequence lenders will start withdrawing from the AC IA and AC will declare non normal market conditions and block withdrawals. Since the base rate may well stay above recent trend for several years this may mean that the AC declared non normal market condition may stay in place for several years. The only way AC can prevent this is to raise the rate to lenders but the majority of pipeline loans are 5%. Agree or disagree? You’ll not be surprised to know that I am close to emptying my IA. As I predicted, AC have declared non normal conditions and you can only withdraw if it’s matched by someone’s deposit.
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trevor
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Post by trevor on Nov 28, 2022 21:33:33 GMT
The last paragraph of the email is ridiculous. They are asking us for ideas!!!!! AC is is a farce.
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Post by gobuchul on Nov 28, 2022 21:37:33 GMT
I have now totally lost faith in them and put my entire investment on withdrawal. A day too late it seems. Your post was very prophetic.
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dh1
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Post by dh1 on Nov 28, 2022 21:45:46 GMT
I have had AC investments for a while now and have reduced them fairly steadily. Complete exit is now underway. Frankly, this is due to the apparent complexity of the product along with the ability (and apparent eagerness) of AC to take dramatic action to limit my options. The email sent out to investors tonight is a classic example of this.
If AC modified its approach, it might well have a happier time of it; there are examples out there of platforms who are managing interest rate rises, etc with apparent ease. AC, by its actions, is evidencing that it can't. Interesting.
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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 Nov 28, 2022 21:46:36 GMT
The last paragraph of the email is ridiculous. They are asking us for ideas!!!!! AC is is a farce. Are they? Seems to me they have an idea and are canvassing opinion on it.
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easynow
Member of DD Central
Popcorn anyone?
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Post by easynow on Nov 28, 2022 21:47:13 GMT
A good idea would have been to stop offering cheap money to borrowers when it was clear risk levels were increasing rapidly and the BOE base rate was also predicted to climb, meanwhile they quite happily continued to offer 5% to lenders, even renewing some loans 18-19 months early just to lock in the low rates for the borrower (934, 975, 1014)
AC would have done well to try and address problems earlier, they are at least 4 months too late.
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p2pfan
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Full-Time Investor
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Post by p2pfan on Nov 28, 2022 21:57:46 GMT
A good idea would have been to stop offering cheap money to borrowers when it was clear risk levels were increasing rapidly and the BOE base rate was also predicted to climb, meanwhile they quite happily continued to offer 5% to lenders, even renewing some loans 18-19 months early just to lock in the low rates for the borrower (934, 975, 1014) AC would have done well to try and address problems earlier, they are at least 4 months too late. You're spot on. AC were gleefully advertising rock-bottom interest rates to borrowers until recently. Why? Because they saw us lenders as gullible mugs, who would hand over our money to any high-risk borrower under the sun, even at measly 4% or 5% rates. It's not commented on these forums, but AC have often bragged when trying to lure money from crowdfunding investors that they pocket a higher share of income for themselves on loans than other P2P platforms. Therefore their margins and profits are higher. These high margins are used to give generous perks to Assetz Capital staff. Nothing is stopping them from tightening their belts to offer higher rates to lenders. But, of course, they wouldn't do that. Their solution, as they've done previously, is to simply ban lenders from being able to get their money back. Geniuses.
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Post by overthehill on Nov 28, 2022 22:03:02 GMT
I have had AC investments for a while now and have reduced them fairly steadily. Complete exit is now underway. Frankly, this is due to the apparent complexity of the product along with the ability (and apparent eagerness) of AC to take dramatic action to limit my options. The email sent out to investors tonight is a classic example of this.
If AC modified its approach, it might well have a happier time of it; there are examples out there of platforms who are managing interest rate rises, etc with apparent ease. AC, by its actions, is evidencing that it can't. Interesting.
I saw the email, reading every 20th word I could tell it was the next level of shaft the lenders. Good luck to all the AC defenders in the forum, I'm almost out but guess what I can't sell my loans unlike other platforms.
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Post by overthehill on Nov 28, 2022 22:06:37 GMT
A good idea would have been to stop offering cheap money to borrowers when it was clear risk levels were increasing rapidly and the BOE base rate was also predicted to climb, meanwhile they quite happily continued to offer 5% to lenders, even renewing some loans 18-19 months early just to lock in the low rates for the borrower (934, 975, 1014) AC would have done well to try and address problems earlier, they are at least 4 months too late. You're spot on. AC were gleefully advertising rock-bottom interest rates to borrowers until recently. Why? Because they saw us lenders as gullible mugs, who would hand over our money to any high-risk borrower under the sun, even at measly 4% or 5% rates. It's not commented on these forums, but AC have often bragged when trying to lure money from crowdfunding investors that they pocket a higher share of income for themselves on loans than other P2P platforms. Therefore their margins are higher. These high margins are used to give generous perks to Assetz Capital staff. Nothing is stopping them from tightening their belts to offer higher rates to lenders. But, of course, they wouldn't do that. Their solution, as they've done previously, is to simply ban lenders from being able to get their money back. Geniuses.
Plenty comments in the forum about AC doing exactly what you state going back a long time and the requisite warnings !
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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
Posts: 10,840
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Post by ilmoro on Nov 28, 2022 22:24:15 GMT
A good idea would have been to stop offering cheap money to borrowers when it was clear risk levels were increasing rapidly and the BOE base rate was also predicted to climb, meanwhile they quite happily continued to offer 5% to lenders, even renewing some loans 18-19 months early just to lock in the low rates for the borrower (934, 975, 1014) AC would have done well to try and address problems earlier, they are at least 4 months too late. You're spot on. AC were gleefully advertising rock-bottom borrowing rates recently. Why? Because they saw us lenders as gullible mugs, who would hand over our money to any high-risk borrower under the sun, even at measly 4% or 5% rates. It's not commented on these forums, but AC have often bragged when trying to lure money from crowdfunding investors that they pocket a higher share of income for themselves on loans than other P2P platforms. Therefore their margins are higher. These high margins are used to give generous perks to Assetz Capital staff. Nothing is stopping them from tightening their belts to offer higher rates to lenders. But, of course, they wouldn't do that. Their solution, as they've done previously, is to simply ban lenders from being able to get their money back. Geniuses. Have they? It isnt true though ... most platforms have comparable or larger spreads eg LP is about 30%, CP 20-30%, Easy 60%, Somo c40-50%, PL at 10% is the outlier, AC only goes that low very rarely. (2 weeks ago - 8% spread) You are however right they could drop their margins ... not necessarily the wisest business plan
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alender
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Post by alender on Nov 28, 2022 22:26:03 GMT
The last paragraph of the email is ridiculous. They are asking us for ideas!!!!! AC is is a farce. Here's an idea get rid of the directors and use their salaries to increase liquidity, it is obvious they are not capable of reading the financial signs as the rest of us are so they are not competent for this role. Fortunately for myself I would not touch these accounts or AC with a barge pole after getting my money out after first lock in. This must finally end these accounts and perhaps AC as who would want to be invest now and play the AC lock in Hockey Cocky.
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alender
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Post by alender on Nov 28, 2022 22:35:25 GMT
The last paragraph of the email is ridiculous. They are asking us for ideas!!!!! AC is is a farce. How about a second secondary market, anyone think this will work again? not me!
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mrk
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Post by mrk on Nov 28, 2022 22:52:06 GMT
I'm not sure the risks with this kind of multiple-tranche loans were ever properly highlighted. (And not just on AC.)
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