|
|
Post by bob2010 on Jul 2, 2024 10:31:15 GMT
Does anyone one know what the formula is or how the workings are done at AC to determine whether/how the total repayment comes to us as Interest or a cash withdrawal from the NOT QAA Im curious why we are only getting 3% return and not nearer 4% - APR and MAY were over 100% of interest received for QAA - I know it was only 83% in June but I received about 15 payments yesterday due to the EOM falling on the Weekend. (unless AC have taken this into account) and so wondering how things work Do they keep a bit of interest and use that to pay out more capital or Vice versa ? Or is it transparent - All interest repayments on loans coming into QAA are paid out as Interest and all Capital is paid out as Capital TIA I dont know for definite but I dont think the two are interconnected. The capital distribution is based on the amount of free cash available after they have deducted a sum to meet future funding requirements The interest is the amount paid on the loans held by the QAA during the month minus the fee due on those loans. Its the fee deduction that explains why we dont get 4% even if sufficient interest has been paid to cover the full amount. The fee is around £50-60k a month so the interest needs to be about 120% of the required sum to get full 4%. Hence the interest for April (about 123%) resulted in a 4% payment but for May (only 105%) didnt. Its certainly not transparent ... far too complicated as fee will be calculated daily, and subject to non-paying loans and catch up (which may be at a different fee rate) I dont think AC factor in delayed payments, they just boost the pot the following month
There is also the issue with delayed payments due to weekends and bank holidays. Due to the 4% cap, if there are catch-up payments in the following month that exceed the cap, we wouldn't receive that interest as it would go into the provision fund. This is essentially a timing issue, as Assetz seems to focuses on actual payments rather than accrued interest. If payments fall over a weekend, they are processed in the following month. However, the cap prevents these delayed payments from being paid out, and any excess goes into the provision fund. This approach seems unfair, as it does not account for accrued interest. I have raised a complaint with Assetz about this, as effectively the provision fund benefits at the expense of the investors, which is not in line with their provision policy.
According to the provision policy, the Provision Funds are intended to cover on a discretionary basis:
- Actual capital losses (following recovery work) arising from a defaulted loan.
|
|
|
|
Post by nbk on Jul 2, 2024 11:03:27 GMT
So I know this is slightly off topic, but do we have enough information at this point to estimate what our likely level of default will be at the end of the run-off process? So from our remaining capital (in Access Accounts) do we expect to eventually have to write off 10-20%, 20-30% or more ? Or are we still simply too early in the process / too many unknown variables that make any estimation a bit pointless.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329 
Likes: 11,549
|
Post by ilmoro on Jul 2, 2024 12:01:14 GMT
So I know this is slightly off topic, but do we have enough information at this point to estimate what our likely level of default will be at the end of the run-off process? So from our remaining capital (in Access Accounts) do we expect to eventually have to write off 10-20%, 20-30% or more ? Or are we still simply too early in the process / too many unknown variables that make any estimation a bit pointless. Too early - the defaults largely remained unchanged and there are too many loans being can kicked to get a true impression. The other question is how much of the defaults will the PF be able to cover ... currently predicted capital losses are covered but there are very limited funds in the PF to cover any variance in the predictions or future defaults, with no chance of it being boosted until the lender fee ends. AC have actually manged to resolve a few defaults recently so the situation hasnt worsened and some funds may have gone back into the PF
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
|
Post by ilmoro on Jul 31, 2024 21:58:48 GMT
As of 30 June Capital outstanding £93m Free Cash £3.3m - just under £2m paid out Outstanding funding commitments <£1m Loans 174 Default 35 (includes 4 with nominal amounts) - 16m Arrears £12.9m No June payment £10m Catch up £2m Repaid 10 (£1.7m) Interest received c268k representing approx 83% of sum needed to pay 4% before the lender fee. Interest paid 3.05% - actually better than expected due to payments falling due over weekend & increasing number of loans rolling interest up. As of 31 July Capital outstanding £89.7m Free Cash £5m - Outstanding funding commitments <£1m Loans 164 Default 35 (includes 4 with nominal amounts) - 16m Arrears £11.6m No June payment £18m Catch up £15m Repaid 10 (£3.2m) Interest received c423k representing approx 134% of sum needed to pay 4% before the lender fee. Full interest should be paid with surplus funds to top up PF c £60k
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
|
Post by ilmoro on Aug 1, 2024 11:55:48 GMT
4% interest paid & 3.7% distribution
|
|
|
|
Post by bob2010 on Aug 1, 2024 12:13:51 GMT
4% interest paid & 3.7% distribution We've nearly had a third of the capital returned, since the run-off commenced.
|
|
|
|
Post by oppsididitagain on Aug 5, 2024 9:32:57 GMT
Loan 1558. has paid an extra 425K in principle in the month of Aug. 200K today and 225K was applied on August 2nd
Is that enough to expect and extra withdraw from QAA this week, or will this be kept by AC until the EOM ?
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
|
Post by ilmoro on Aug 5, 2024 11:51:58 GMT
Loan 1558. has paid an extra 425K in principle in the month of Aug. 200K today and 225K was applied on August 2nd Is that enough to expect and extra withdraw from QAA this week, or will this be kept by AC until the EOM ? EOM, thats a small amount, less than .5%
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
|
Post by ilmoro on Aug 6, 2024 14:18:46 GMT
For those who keep an eye on such things (hopefully not just me) the PF figures have been belatedly updated to end of Apr.
Increase of £40k due to a corresponding decrease in ringfenced funds following redemption of defaulted loans (more than were defaulted). No additional interest contributions as would be expected due to target misses Feb/Mar/Apr.
|
|
|
|
Post by oppsididitagain on Aug 7, 2024 10:24:49 GMT
I dont know how they can distribute extra interest if its capped at 4%, I guess AC answer/argument would be , they will keep it for potential future losses..
Or to Fund other important business decisions.
can you provide a link where to monitor such PF activities please, I struggled to find the new Log in link a few weeks ago
TIA
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
|
Post by ilmoro on Aug 7, 2024 11:28:21 GMT
I dont know how they can distribute extra interest if its capped at 4%, I guess AC answer/argument would be , they will keep it for potential future losses.. Or to Fund other important business decisions. can you provide a link where to monitor such PF activities please, I struggled to find the new Log in link a few weeks ago TIA I meant additional interest contributions into the PF ie anything above the 4% retail.assetzcapital.co.uk/invest/our-accounts/quick-access-account/key-account-informationIf you are logged in, can also be found by clicking on menu in QAA box, about account, then key account info
|
|
|
|
Post by oppsididitagain on Aug 7, 2024 14:15:12 GMT
Thanks Loan 1584. just paid us in full - 800K+ So far thats an extra 1.2Mil this month we weren't expecting. over 1% of the total loans I believe (can you confirm my numbers)  As I have 6 figures in the not so QAA/IFISA , for me that would be an extra 1k released.. P.S would make sense for them to release it, as they would pay us less interest at EOM. |
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
|
Post by ilmoro on Aug 7, 2024 19:52:31 GMT
Thanks Loan 1584. just paid us in full - 800K+ So far thats an extra 1.2Mil this month we weren't expecting. over 1% of the total loans I believe (can you confirm my numbers) As I have 6 figures in the not so QAA/IFISA , for me that would be an extra 1k released.. P.S would make sense for them to release it, as they would pay us less interest at EOM. Actually a bit more for the AA nearly 1.4% of outstanding loan balance Werent expecting? We were but then we have been expecting £10m plus for most of the last 6 months, so unexpected that expected happened maybe. Only another £19m expected this month. That said, already today, £800k of the expected isnt now expected It would, and it has been mentioned to them. They tried it one month. They could actually release the funds as they are repaid ... there is nothing stopping them AIUI p2pindependentforum.com/post/478856
|
|
|
|
Post by oppsididitagain on Aug 13, 2024 12:46:45 GMT
Loan 1558. just paid off another 200K of principal - making it a total of 700K in extra capital payments since the last money released from the QAA
I guess we will be earning interest on this money, even though it would be nice to have it released.
|
|
|
|
Post by bob2010 on Aug 13, 2024 15:52:09 GMT
Loan 1558. just paid off another 200K of principal - making it a total of 700K in extra capital payments since the last money released from the QAA I guess we will be earning interest on this money, even though it would be nice to have it released. That's an interesting point. If loans are repaid then that means the borrower is paying less/no interest. Do Assetz pay interest on those repayments??
|
|
