mikes1531
Member of DD Central
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Post by mikes1531 on Feb 8, 2015 18:48:56 GMT
Thus the creation of investment products, of which the GEIA is the first to launch but there will be others, which allow people to invest without having to manage a portfolio of loans. Alongside this we are going to release the system we use to build products to all lenders so that they can use their own. We have also made a commitment to ensure that the APIs we are currently creating for use by institutional investors will all be released to the public, allowing any lender to access the same systems. : Can you give us any clues/hints of when any of these new developments might be released? Are we talking about next week? Next month? Next quarter? Latter half of the year? Or...?
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mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
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Post by mikes1531 on Feb 8, 2015 19:04:20 GMT
Also, people should probably only invest if they are willing to keep their money invested for the remaining duration of the loan (e.g. 24 months), as some parts are not selling at all on some loans (typically 10% interest rate or less), so it's impossible to get out (nor to discount the parts). It's probably good advice that people shouldn't invest expecting to retrieve their money before maturity. But interest rate is only one factor affecting the saleability of loan parts. There's nearly £300k of the 15% Hackney loan available at the moment and I can assure you it isn't selling very quickly at all. Yet there's none of the early 6.5% BtL loans (#6, #11, & #25) available now, and every time I've seen any of those appear for sale they've disappeared surprisingly quickly. The quality of the security seems to be a big factor as well, with first charges on moderately priced properties apparently being rated more highly than second charges on megapound properties. Business debentures based on stock and customer invoices that can be run down if a company borrower gets into financial difficulties don't appear to gain a lot of favour. And then there are the personal guarantees...
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Post by chris on Feb 8, 2015 19:09:37 GMT
Thus the creation of investment products, of which the GEIA is the first to launch but there will be others, which allow people to invest without having to manage a portfolio of loans. Alongside this we are going to release the system we use to build products to all lenders so that they can use their own. We have also made a commitment to ensure that the APIs we are currently creating for use by institutional investors will all be released to the public, allowing any lender to access the same systems. : Can you give us any clues/hints of when any of these new developments might be released? Are we talking about next week? Next month? Next quarter? Latter half of the year? Or...? The main blocker at the moment for the bespoke investment accounts is documentation and a little UI polish. Will hopefully be Feb but definitely Q1 as otherwise I'll be shouted at by stuartassetzcapital. More accounts created by us are awaiting loan stock before they can be released. API could be Q1 but may slip into Q2 as it's not our main priority at the moment but will be soon.
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Post by reeknralf on Feb 8, 2015 19:21:23 GMT
"expected losses across a diversified portfolio of loans to be circa 0.5%". If the definition of a diversified portfolio is at least across 100 loans (I don't know AC's definition), then my risk would be significantly higher than 0.5% for many months. Unless you're saying something subtle that I've missed, this is wrong. Diversification doesn't alter a portfolio's default rate, it instead decreases the chance that the default rate is either higher or lower than the average return for the platform.
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