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Post by batchoy on Jan 18, 2015 8:47:09 GMT
I agree that selling parts of loans with no other units available typically happens within minutes. But I don't agree with the last sentence suggesting that parts in loans with large amounts available are likely to sell within a day or two. AIUI, when someone buys a part, the person who gets to sell is chosen at random. So if you offer a £100 part for sale and there are £2000 other parts for sale, then when someone decides to buy £100 worth you have a 1-in-20 chance of being the chosen seller. If there are £200k of parts available, your chance of being the seller is 1-in-2000. So it is likely to take a lot of buyers before your number comes up and your part is the one that's sold. This isn't right. It splits the amount between the number of sellers (it doesn't apportion the actual amount). For example, if there is £300k up for sale on a loan from one seller and you put £100 up for sale....if someone buys £200 of that loan then you will sell your £100 (and the other guy will also sell £100). For this reason it's actually much easier to sell down smaller (up to a few grand say) of the loans that have larger availability than people think. Typically the loans with a lot for sale will be a handful (maybe even one) underwriters selling down so you will sell quite quickly. If if you aren't sure, try buying £100 of the care home that's available and put it straight up for sale. I would wager you would have sold it within 24 hours despite there being £350k sitting there. If that is correct why have I not seen s single sale of a WT loan in either my MLIA or GEIA since 17th December both of loans where there are significant amounts of loan available and none? The WT loans are the worst but I have had other loans sit for weeks with no movement not even a penny when there have been sales of units (unless it is a case of units being withdrawn). I would therefore concur with mikes1531
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agent69
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Post by agent69 on Jan 18, 2015 9:57:51 GMT
This isn't right. It splits the amount between the number of sellers (it doesn't apportion the actual amount). For example, if there is £300k up for sale on a loan from one seller and you put £100 up for sale....if someone buys £200 of that loan then you will sell your £100 (and the other guy will also sell £100). For this reason it's actually much easier to sell down smaller (up to a few grand say) of the loans that have larger availability than people think. Typically the loans with a lot for sale will be a handful (maybe even one) underwriters selling down so you will sell quite quickly. If if you aren't sure, try buying £100 of the care home that's available and put it straight up for sale. I would wager you would have sold it within 24 hours despite there being £350k sitting there. in the interest of science I've just put £100 of my holding in the care home up for sale. We shall see... Taking one for the team. What a star
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pikestaff
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Post by pikestaff on Jan 18, 2015 10:23:06 GMT
in the interest of science I've just put £100 of my holding in the care home up for sale. We shall see... Taking one for the team. What a star It's no big deal! In the unlikely event that it sells the system will immediately buy me £100 of one of the WT loans, then I will put my target back to where it was and it should be re-filled within a week from reinvested repayments. batchoy I don't know if Ton's refinement of the "random" view is correct, but it might be worth experimenting with trying to sell only small amounts to see if that makes a difference. Unless you've tried this already?
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Post by pepperpot on Jan 18, 2015 12:33:31 GMT
Breaking news... I set the £100 care home test up myself last night just after midnight, good call bg, it sold in one go at 07:49 this morning. Did I just get lucky pikestaff, or have you had the same fortune? Edit: my understanding of the SM is the same as Ton ⓉⓞⓃ, i.e. if an underwriter has a £100k up for sale and a retail investor puts up £100, then if some one buys £200 they will have £100 from each seller. I've just bought my £100 back but increased slightly to an order of £120, it was two purchases, one of £100 and one of £20. To make sense of that we'd need to know how many individual sellers of loan #101 there are... chris, is that too much to ask? |
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pikestaff
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Post by pikestaff on Jan 18, 2015 14:51:34 GMT
Breaking news... I set the £100 care home test up myself last night just after midnight, good call bg, it sold in one go at 07:49 this morning. Did I just get lucky pikestaff, or have you had the same fortune? Edit: my understanding of the SM is the same as Ton ⓉⓞⓃ, i.e. if an underwriter has a £100k up for sale and a retail investor puts up £100, then if some one buys £200 they will have £100 from each seller. I've just bought my £100 back but increased slightly to an order of £120, it was two purchases, one of £100 and one of £20. To make sense of that we'd need to know how many individual sellers of loan #101 there are... chris, is that too much to ask? It seems you were not just lucky! Mine sold in one go at 11:53 (and the proceeds were instantly invested in £100 of WT#112). If I've understood Ton correctly, the algorithm discriminates in favour of smaller sellers. If I adjust your scenario so an underwriter has £100k up for sale and two retail investors each have £100 up for sale, then: - if someone buys £100 it would come from one of the retail investors at random; - if someone then buys another £150, £100 would come from the remaining retail investor and £50 from the underwriter. Ton ⓉⓞⓃ/ chris, have I got this right? Edit: pepperpot, was your £100 purchase at 11:53 by any chance?
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Post by pepperpot on Jan 18, 2015 15:36:23 GMT
Edit: pepperpot, was your £100 purchase at 11:53 by any chance? No, 12:23
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mikes1531
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Post by mikes1531 on Jan 18, 2015 20:26:36 GMT
I tried the experiment as well, buying £100 at 2340 Saturday night, and reducing my target by £100 after 0100 on Sunday. My result also supports bg's theory, with £100 sold at 0749. I'm glad I didn't take up his offer of a wager! I suppose another experiment to try would be to see if selling parts £20 at a time produces sales any faster than selling in larger amounts, but it would be difficult to do a properly controlled experiment. And if £100 parts can be sold within 24 hours there's really no point in trying to sell shrapnel. Finally, I can report that, as an extra bonus, I earned nearly thruppence of interest on the £100 part during the eight hours that I owned it!  |
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