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Post by oppsididitagain on Oct 23, 2022 13:13:28 GMT
With interest rates going up and many FSCS protected bank accounts now offering 2.5%+ for Instant access , 3.5% for 6month and 4.5% for 1year What do you think is a good 'fair' Risk/Reward % for the AA ?
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Post by Ace on Oct 23, 2022 14:51:41 GMT
With interest rates going up and many FSCS protected bank accounts now offering 2.5%+ for Instant access , 3.5% for 6month and 4.5% for 1year What do you think is a good Risk/Reward % for the AA ? Which Access Account, Quick, 30-day or 90-day.
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Post by oppsididitagain on Oct 23, 2022 15:00:49 GMT
Just the Quick Access, as I relate this to instant access (even though it shouldn't be).
Just want to know what people see as a 'fair' R/R considering how the AA operates in normal market conditions.
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ashtondav
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Post by ashtondav on Oct 23, 2022 15:38:12 GMT
About double the risk free rate seems reasonable, given long term reliable returns (in Access Accounts.) But I wouldn’t ever rely on it being “easy access”.
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Post by df on Oct 23, 2022 17:32:23 GMT
About double the risk free rate seems reasonable, given long term reliable returns (in Access Accounts.) But I wouldn’t ever rely on it being “easy access”. Yes, the "easy access" part of the deal can change at any time. I keep a very small amount in QAA to fund new 7%+ loans for convenience to avoid bank transactions, but for a more substantial investment I'd want to see 5% on QAA, 6% on 30-days and 7% on 90-days.
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jlend
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Post by jlend on Oct 24, 2022 14:25:41 GMT
A rate that keeps the PF strong.
Without a sufficient PF in each of the access accounts there are no access accounts. They would stop being access accounts.
Without the access accounts, personally i would question whether AC had the appetite to continue any retail lending via the MLA alone at any scale. But i have never asked them.
I have no idea what AC could currently afford given the mix of loans in the access accounts. Perhaps someone has attempted to work this out, allowing for sufficient build up of the PF.
I don't have any money in the qaa, but there appears to be demand at the current rates.
What is the maximum delta we have seen in the past between the QAA and 90DAA?
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ashtondav
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Post by ashtondav on Oct 24, 2022 17:58:15 GMT
Well the reults are insight free rubbish. "As much as possible" or >7% would probably have scored higher!
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Post by df on Oct 24, 2022 20:11:52 GMT
A rate that keeps the PF strong. Without a sufficient PF in each of the access accounts there are no access accounts. They would stop being access accounts. Without the access accounts, personally i would question whether AC had the appetite to continue any retail lending via the MLA alone at any scale. But i have never asked them. I have no idea what AC could currently afford given the mix of loans in the access accounts. Perhaps someone has attempted to work this out, allowing for sufficient build up of the PF. I don't have any money in the qaa, but there appears to be demand at the current rates. What is the maximum delta we have seen in the past between the QAA and 90DAA? They got £200m funding two months ago, may be that somehow helps AC to get through this "very difficult time". At the peak my 90DAA was 5.75%. I can't be sure that I remember correctly, but I think at the same time 30DAA was 5.1 and QAA was 4.1% at the time.
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ilmoro
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Post by ilmoro on Oct 24, 2022 22:04:52 GMT
A rate that keeps the PF strong. Without a sufficient PF in each of the access accounts there are no access accounts. They would stop being access accounts. Without the access accounts, personally i would question whether AC had the appetite to continue any retail lending via the MLA alone at any scale. But i have never asked them. I have no idea what AC could currently afford given the mix of loans in the access accounts. Perhaps someone has attempted to work this out, allowing for sufficient build up of the PF. I don't have any money in the qaa, but there appears to be demand at the current rates. What is the maximum delta we have seen in the past between the QAA and 90DAA? They got £200m funding two months ago, may be that somehow helps AC to get through this "very difficult time". At the peak my 90DAA was 5.75%. I can't be sure that I remember correctly, but I think at the same time 30DAA was 5.1 and QAA was 4.1% at the time. Not to mention the £1bn coming from Aros over the next 3 yrs, the continued involvement of Varengold (bumper profits just announced) et al. Your recollection is correct, those were the rates in 2019
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Post by oppsididitagain on Oct 24, 2022 22:30:23 GMT
Well the reults are insight free rubbish. "As much as possible" or >7% would probably have scored higher! Thats why I used the term 'fair'. Personally I think ATM 4.25% is fair for QAA, 4.75% for 30AA and 5.5% for 90AA in these times. However as someone stated, back 2019 AC rates were 4.1, 5.1 and 5.75 but with the a BOE base rate of 0.75 BOE stated rates going up next week so it will be interesting to see how the FSCS instant access rates adjust and will AC up their rates. ?
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Post by df on Oct 25, 2022 20:35:21 GMT
Well the reults are insight free rubbish. "As much as possible" or >7% would probably have scored higher! Thats why I used the term 'fair'. Personally I think ATM 4.25% is fair for QAA, 4.75% for 30AA and 5.5% for 90AA in these times. However as someone stated, back 2019 AC rates were 4.1, 5.1 and 5.75 but with the a BOE base rate of 0.75 BOE stated rates going up next week so it will be interesting to see how the FSCS instant access rates adjust and will AC up their rates. ? BoE rates have an influence on savings accounts’ rates, but it’s banks’ offers that really matter. It’s not always proportional. At the time of 0.75% I had about 20 savings and current accounts that paid between 2.5% and 5% (limited amounts, but it adds up), the best IA with high limit was RCI paying 1.42%. Today’s balance between BoE rate and FSCS offers is different.
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bugs4me
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Post by bugs4me on Oct 26, 2022 12:21:29 GMT
Well the reults are insight free rubbish. "As much as possible" or >7% would probably have scored higher! Thats why I used the term 'fair'. Personally I think ATM 4.25% is fair for QAA, 4.75% for 30AA and 5.5% for 90AA in these times. However as someone stated, back 2019 AC rates were 4.1, 5.1 and 5.75 but with the a BOE base rate of 0.75 BOE stated rates going up next week so it will be interesting to see how the FSCS instant access rates adjust and will AC up their rates. ? Maybe these rates are fair but back in 2019, all lenders felt more 'secure' believing, well certainly myself anyway, that the PF would meet it's obligations albeit legally it had to be discretionary. Since 2019 and not in any particular order was there not a temporary block on withdrawals, was there a fee introduced for withdrawals, has the PF met it's obligations or are AC still can kicking those defaults to avoid payments.
There have been several posts about funds still being tied up in the old GBBA, etc. Frankly I think AC have lost interest in us private lenders/investors and are concentrating on institutional investors and maybe their hoped for IPO. It will take a rebuilding of trust on their part - assuming they are still interested.
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ashtondav
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Post by ashtondav on Oct 26, 2022 14:31:16 GMT
Maybe. But that's a beer But they will be hoping for an IPO.
If they were intending to ditch and de-prioritise retail punters i doubt they would have re-opened the AA...
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warn
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Post by warn on Oct 27, 2022 7:21:38 GMT
AC, LP and PL only now. Still have ZOPA shame options from 2005. Ah, that brave new world.... The demise of Zopa (as was) is indeed a shame -- I'd cash them in
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alender
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Post by alender on Oct 27, 2022 16:54:05 GMT
Maybe. But that's a beer But they will be hoping for an IPO.
If they were intending to ditch and de-prioritise retail punters i doubt they would have re-opened the AA...
Not much chance of an IPO now or probably for some time to come, too many good companies on high yields and many funds heavily discounted to NAV, very few IPOs at present, most of the decent companies wanting to go for an IPO are waiting for better times. Don't think AC give much thought to retail investors and just take them for granted otherwise they would have treated them better and got out of lock in much sooner, also rates are far too low for AAs. They will be happy to take the funds (if any are coming in) and pay a low rate as they do not worry about too much money being withdrawn as they will just have another lock in.
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