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Post by redpete on Jan 16, 2024 20:48:26 GMT
Up to 16% idle cash today so time for a change! 9.65% for me.not hearing from many other so either they have no idle cash , accepted it and are being patient or bailed out to elsewhere. Third option - they haven't bothered to add to the thread because they don't see it as worthwhile. (Currently 6.25% cash, taken money out Oct & November, likely to withdraw more soon - probably into Lendwise.)
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firedog
Member of DD Central
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Post by firedog on Jan 16, 2024 21:18:39 GMT
Under 2% idle for me, though I expect my balance is lower than most.
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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: 10,881
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Post by ilmoro on Jan 16, 2024 21:36:15 GMT
0.001% ... you probably didnt want to know that ... only low 4 figures invested
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Post by df on Jan 16, 2024 22:21:15 GMT
I've made another withdrawal yesterday, so today my cash drag is 2.7%. I prefer to keep it at around this level, leaving enough for the usual £5-£10 allocations and a bit extra for the occasional larger loans. "Total portfolio value" is plummeting, but XIRR has been staying at 8.42% for a long time now.
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mogish
Member of DD Central
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Post by mogish on Jan 17, 2024 9:48:22 GMT
0.001% ... you probably didnt want to know that ... only low 4 figures invested How did you manage such low cash drag?
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Post by Ace on Jan 17, 2024 12:43:46 GMT
0.001% ... you probably didnt want to know that ... only low 4 figures invested How did you manage such low cash drag? Cash drag is less likely to be a problem on low 4 figure sums. See here for a brief explanation.
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firedog
Member of DD Central
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Likes: 385
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Post by firedog on Jan 17, 2024 13:51:45 GMT
Yeah my balance is a little over £2,400 Idle cash: <£50
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Post by df on Jan 17, 2024 23:16:46 GMT
How did you manage such low cash drag? Cash drag is less likely to be a problem on low 4 figure sums. See here for a brief explanation. I control mine by frequent transactions. It used to be mainly deposits, but in the past 8 months it's only withdrawals. Mine is currently mid 4 figure and auto-lend setting is £100. When it comes to larger loans it's a significant advantage to have more cash in waiting and high auto-lend settings, but larger loans seem to plummet. It used to be more of those and large loans that auto-lend couldn't fill. I think in current financial market position I'm better off using that bit of cash in FSCS accounts paying 5%+ than keeping it idle in UB.
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Post by drphil on Jan 22, 2024 18:27:27 GMT
How did you manage such low cash drag? Cash drag is less likely to be a problem on low 4 figure sums. See here for a brief explanation.Your explanation certainly seems to tie in with what I'm seeing at the moment for my two accounts (0.2% on a £1.9k balance and 12.7% for a £4k balance)
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Post by Ace on Jan 23, 2024 20:05:36 GMT
The cash drag has reduced on all of the accounts that I'm managing today following some large loan renewals on some manuscript loans. Cash drag on the 4 accounts is:
2.9% 2.9% 1.7% 3.7%
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Post by df on Jan 24, 2024 12:55:40 GMT
The cash drag has reduced on all of the accounts that I'm managing today following some large loan renewals on some manuscript loans. Cash drag on the 4 accounts is: 2.9% 2.9% 1.7% 3.7% Mine didn't reduce, but slightly increased. Repayments from these loans were higher then renewal allocations. In this situation having more idle cash (and high limit settings) is an advantage.
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mogish
Member of DD Central
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Post by mogish on Jan 24, 2024 16:31:48 GMT
The cash drag has reduced on all of the accounts that I'm managing today following some large loan renewals on some manuscript loans. Cash drag on the 4 accounts is: 2.9% 2.9% 1.7% 3.7% Mine didn't reduce, but slightly increased. Repayments from these loans were higher then renewal allocations. In this situation having more idle cash (and high limit settings) is an advantage. Recent couple of bigger loans have reduced my cash drag and I do agree with high idle funds and high loan settings seems to help. Now running at roughly 5% idle
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Post by drphil on Jan 25, 2024 15:36:43 GMT
Cash drag is less likely to be a problem on low 4 figure sums. See here for a brief explanation. I control mine by frequent transactions. It used to be mainly deposits, but in the past 8 months it's only withdrawals. Mine is currently mid 4 figure and auto-lend setting is £100. When it comes to larger loans it's a significant advantage to have more cash in waiting and high auto-lend settings, but larger loans seem to plummet. It used to be more of those and large loans that auto-lend couldn't fill. I think in current financial market position I'm better off using that bit of cash in FSCS accounts paying 5%+ than keeping it idle in UB. Yes it's a bit of a difficult call. And it's complicated more in ISA accounts because of the impracticality of moving cash in and out.
I think at the moment I'm ok with the risk/reward that a cash drag up to 12% brings, but I do need to start monitoring the situation more closely than I have been.
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Post by df on Jan 25, 2024 18:14:52 GMT
I control mine by frequent transactions. It used to be mainly deposits, but in the past 8 months it's only withdrawals. Mine is currently mid 4 figure and auto-lend setting is £100. When it comes to larger loans it's a significant advantage to have more cash in waiting and high auto-lend settings, but larger loans seem to plummet. It used to be more of those and large loans that auto-lend couldn't fill. I think in current financial market position I'm better off using that bit of cash in FSCS accounts paying 5%+ than keeping it idle in UB. Yes it's a bit of a difficult call. And it's complicated more in ISA accounts because of the impracticality of moving cash in and out.
I think at the moment I'm ok with the risk/reward that a cash drag up to 12% brings, but I do need to start monitoring the situation more closely than I have been.
Hard to say what strategy is better, it mainly depends on how often the large loans are originated/renewed and the pattern is very random.
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Post by Ace on Jan 25, 2024 20:40:08 GMT
I control mine by frequent transactions. It used to be mainly deposits, but in the past 8 months it's only withdrawals. Mine is currently mid 4 figure and auto-lend setting is £100. When it comes to larger loans it's a significant advantage to have more cash in waiting and high auto-lend settings, but larger loans seem to plummet. It used to be more of those and large loans that auto-lend couldn't fill. I think in current financial market position I'm better off using that bit of cash in FSCS accounts paying 5%+ than keeping it idle in UB. Yes it's a bit of a difficult call. And it's complicated more in ISA accounts because of the impracticality of moving cash in and out.
I think at the moment I'm ok with the risk/reward that a cash drag up to 12% brings, but I do need to start monitoring the situation more closely than I have been.
12% cash drag at Unbolted's current rate is equivalent to 9% pa with zero cash drag. Both of my accounts are down to 2.3% cash today. I've benefited from having very large maximum loan settings to get my cash drag down from 18% over the past couple of months. Obviously, this comes with the risk that I could be allocated single loans up to the size of that limit. However, over that time I received one allocation at 45% of that limit. All other allocations were below 15% of the limit.
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