scooter
Member of DD Central
Posts: 363
Likes: 346
|
Post by scooter on Mar 2, 2024 15:47:52 GMT
I think the points you made in relation to tier 2 lenders not having a clue where thy sit in the capital stack were important. To me it looks like lenders cant have a clue on what the risk of this loan is (unless there are direct updates not provided on the platfrom. The key point is if the interest starts accruing rather than being retained then the Tier 2 risk becomes dynamic, changing on a daily basis as Tier 1 interest moves ahead of Tier 2 capital. I cant see anywhere that Kuflink spells out this additional risk other than in general terms. ie T2 more risky than T1 Agreed. They should also put the important points of that knowledge article in the T&Cs; particularly that Tranches rank equally before applying Tier priorities. I just searched them now (last updated 28/2/24) and the word "tranche" doesn't even appear. Is it legal to keep updating the T&Cs without informing lenders as to what they've added/deleted/changed? There seems to be some new sections added since I last read them. They seem to have had a stab at defining how the auto accounts work, Section 23. "Investment Recovery Process in Auto Pool". I can't say that I fully understood it on a first reading, but I only have a very small chunk in Auto, so not overly bothered. Hi, I am not in the auto lend, but i am interested to know if the rates in the auto lend, particularly the last tranches on a loan are the same level of risk and interest as the first tranches. They do not yet accept that they are braking any guidelines by not showing the valuations carried out on Auto lend tranches and i would like to know if the issue is only the really bad sate of the project as highlighted by the valuation report, or is it also to do with risks and rates. Have you ever looked?
|
|
|
Post by Ace on Mar 2, 2024 17:38:42 GMT
Agreed. They should also put the important points of that knowledge article in the T&Cs; particularly that Tranches rank equally before applying Tier priorities. I just searched them now (last updated 28/2/24) and the word "tranche" doesn't even appear. Is it legal to keep updating the T&Cs without informing lenders as to what they've added/deleted/changed? There seems to be some new sections added since I last read them. They seem to have had a stab at defining how the auto accounts work, Section 23. "Investment Recovery Process in Auto Pool". I can't say that I fully understood it on a first reading, but I only have a very small chunk in Auto, so not overly bothered. Hi, I am not in the auto lend, but i am interested to know if the rates in the auto lend, particularly the last tranches on a loan are the same level of risk and interest as the first tranches. They do not yet accept that they are braking any guidelines by not showing the valuations carried out on Auto lend tranches and i would like to know if the issue is only the really bad sate of the project as highlighted by the valuation report, or is it also to do with risks and rates. Have you ever looked? The rates paid on investments in the autolend are set by the autolend rates at the time that the autolend investment was made. They are not dependent directly on the rates of the underlying investments. There is no more info provided to autolend investors than that available via the self select loans; no access to any valuation reports via autolend. The same updates are provided for the autolend only tranches as for the self select tranches. If I've misunderstood your question, feel free to try again.
|
|
scooter
Member of DD Central
Posts: 363
Likes: 346
|
Post by scooter on Mar 2, 2024 18:27:36 GMT
Hi, I am not in the auto lend, but i am interested to know if the rates in the auto lend, particularly the last tranches on a loan are the same level of risk and interest as the first tranches. They do not yet accept that they are braking any guidelines by not showing the valuations carried out on Auto lend tranches and i would like to know if the issue is only the really bad sate of the project as highlighted by the valuation report, or is it also to do with risks and rates. Have you ever looked? The rates paid on investments in the autolend are set by the autolend rates at the time that the autolend investment was made. They are not dependent directly on the rates of the underlying investments. There is no more info provided to autolend investors than that available via the self select loans; no access to any valuation reports via autolend. The same updates are provided for the autolend only tranches as for the self select tranches. If I've misunderstood your question, feel free to try again. Yes, that makes sense. So if tranche 25 for example, on a loan which is not going to plan, with a high chance of not finishing without extra money etc gets filled via the autolend, investors might get 9%, but the risk of that particular loan going bad is huge and worth much more in interest to investors. So just like Assetz and when the music stops, the bad debt is yours? And they could be putting alot more money to these loans via auto lend and no one can verify whether they have or not? So actually, they may not even have valuations for all the tranches on autolend.
|
|
|
Post by Ace on Mar 2, 2024 18:49:12 GMT
The rates paid on investments in the autolend are set by the autolend rates at the time that the autolend investment was made. They are not dependent directly on the rates of the underlying investments. There is no more info provided to autolend investors than that available via the self select loans; no access to any valuation reports via autolend. The same updates are provided for the autolend only tranches as for the self select tranches. If I've misunderstood your question, feel free to try again. Yes, that makes sense. So if tranche 25 for example, on a loan which is not going to plan, with a high chance of not finishing without extra money etc gets filled via the autolend, investors might get 9%, but the risk of that particular loan going bad is huge and worth much more in interest to investors. So just like Assetz and when the music stops, the bad debt is yours? And they could be putting alot more money to these loans via auto lend and no one can verify whether they have or not? So actually, they may not even have valuations for all the tranches on autolend. Yes, one of the reasons that I don't invest in autolend (beyond the minimum stake I've taken to be able to monitor what's happening from the inside) is that there is an obvious "temptation" for Kuflink to dump any investments that wouldn't get funded via self select into the autolend pool. This could be an advantage to self select lenders, as it would allow later tranches of projects in difficulty to get the funding that they need, but might otherwise be difficult to raise! All supposition, but this particular project is in difficulty and all of the latter tranches have been filed by autolend only, and is not the only one by a long shot. It is possible to see exactly how much of one's autolend investment is allocated to each loan. E.g. I currently have just 1.4% of my autolend investment spread over 13 tranches of this loan. It's also possible to see how much of one's autolend investment is in default. Though this is currently showing as £0.00 for me, which I find hard to believe. Perhaps I'm misunderstanding something.
|
|
|
Post by overthehill on Mar 2, 2024 19:18:25 GMT
I suppose P2P platforms thought Autolend was more succinct and punchy than TheGiftThatKeepsGiving.
|
|
scooter
Member of DD Central
Posts: 363
Likes: 346
|
Post by scooter on Mar 3, 2024 0:04:02 GMT
Yes, that makes sense. So if tranche 25 for example, on a loan which is not going to plan, with a high chance of not finishing without extra money etc gets filled via the autolend, investors might get 9%, but the risk of that particular loan going bad is huge and worth much more in interest to investors. So just like Assetz and when the music stops, the bad debt is yours? And they could be putting alot more money to these loans via auto lend and no one can verify whether they have or not? So actually, they may not even have valuations for all the tranches on autolend. Yes, one of the reasons that I don't invest in autolend (beyond the minimum stake I've taken to be able to monitor what's happening from the inside) is that there is an obvious "temptation" for Kuflink to dump any investments that wouldn't get funded via self select into the autolend pool. This could be an advantage to self select lenders, as it would allow later tranches of projects in difficulty to get the funding that they need, but might otherwise be difficult to raise! All supposition, but this particular project is in difficulty and all of the latter tranches have been filed by autolend only, and is not the only one by a long shot. It is possible to see exactly how much of one's autolend investment is allocated to each loan. E.g. I currently have just 1.4% of my autolend investment spread over 13 tranches of this loan. It's also possible to see how much of one's autolend investment is in default. Though this is currently showing as £0.00 for me, which I find hard to believe. Perhaps I'm misunderstanding something. " It's also possible to see how much of one's autolend investment is in default. Though this is currently showing as £0.00 for me, which I find hard to believe. Perhaps I'm misunderstanding something." That's interesting in itself. I would be keen to know if anyone in autolend has defaulted loans, because if they are in there i would have thought they would be spread as thinly as possible. There is certainly tranches fulfilled by auto loan (so we are led to believe) which are in default. All I know is that they plan to make a "business decision" on whether to let investors of select loans see valuations on tranches from auto loans in the "near future".
|
|
|
Post by Ace on Mar 4, 2024 17:08:50 GMT
Yes, one of the reasons that I don't invest in autolend (beyond the minimum stake I've taken to be able to monitor what's happening from the inside) is that there is an obvious "temptation" for Kuflink to dump any investments that wouldn't get funded via self select into the autolend pool. This could be an advantage to self select lenders, as it would allow later tranches of projects in difficulty to get the funding that they need, but might otherwise be difficult to raise! All supposition, but this particular project is in difficulty and all of the latter tranches have been filed by autolend only, and is not the only one by a long shot. It is possible to see exactly how much of one's autolend investment is allocated to each loan. E.g. I currently have just 1.4% of my autolend investment spread over 13 tranches of this loan. It's also possible to see how much of one's autolend investment is in default. Though this is currently showing as £0.00 for me, which I find hard to believe. Perhaps I'm misunderstanding something. " It's also possible to see how much of one's autolend investment is in default. Though this is currently showing as £0.00 for me, which I find hard to believe. Perhaps I'm misunderstanding something." That's interesting in itself. I would be keen to know if anyone in autolend has defaulted loans, because if they are in there i would have thought they would be spread as thinly as possible. There is certainly tranches fulfilled by auto loan (so we are led to believe) which are in default. All I know is that they plan to make a "business decision" on whether to let investors of select loans see valuations on tranches from auto loans in the "near future". Having had time to look a little deeper: Although the summary of my auto investment shows £0.00 in default, if I click on the BREAKDOWN and select the ALL LOANS tab it shows that I have 420 loan parts, of which, 52 loan parts have status In Default totalling 15.19% of the invested capital. If I click the DEFAULT LOANS tab in the BREAKDOWN, it shows a Default Amount of £0.00 with an empty list of defaulted loans!!! In the ALL LOANS tab there is a Total Loan Amount field showing £57,331,793.55. In the DEFAULT LOANS tab there is a Total Loan Amount field showing £8,770,999.42, which equates to 15.30% of the amount in the ALL LOANS tab. So, it looks like 15.3% of the auto pool is in default (the 15.19% above being affected by rounding/truncation errors over the 52 loan parts in a small investment).
|
|
scooter
Member of DD Central
Posts: 363
Likes: 346
|
Post by scooter on Mar 4, 2024 19:33:47 GMT
" It's also possible to see how much of one's autolend investment is in default. Though this is currently showing as £0.00 for me, which I find hard to believe. Perhaps I'm misunderstanding something." That's interesting in itself. I would be keen to know if anyone in autolend has defaulted loans, because if they are in there i would have thought they would be spread as thinly as possible. There is certainly tranches fulfilled by auto loan (so we are led to believe) which are in default. All I know is that they plan to make a "business decision" on whether to let investors of select loans see valuations on tranches from auto loans in the "near future". Having had time to look a little deeper: Although the summary of my auto investment shows £0.00 in default, if I click on the BREAKDOWN and select the ALL LOANS tab it shows that I have 420 loan parts, of which, 52 loan parts have status In Default totalling 15.19% of the invested capital. If I click the DEFAULT LOANS tab in the BREAKDOWN, it shows a Default Amount of £0.00 with an empty list of defaulted loans!!! In the ALL LOANS tab there is a Total Loan Amount field showing £57,331,793.55. In the DEFAULT LOANS tab there is a Total Loan Amount field showing £8,770,999.42, which equates to 15.30% of the amount in the ALL LOANS tab. So, it looks like 15.3% of the auto pool is in default (the 15.19% above being affected by rounding/truncation errors over the 52 loan parts in a small investment). The default criteria is an odd one. If the borrower doesn't pay for only one month they are in default which sounds really tight, but Kuf don't pay upfront and mainly retain interest. So no borrower is repaying them on a monthly basis and will never default during the initial term. When the borrower goes over the term, they still don't necessarily default them, as per this loan. I don't understand that.
|
|
|
Post by jono75 on Mar 28, 2024 1:46:47 GMT
Although the summary of my auto investment shows £0.00 in default, if I click on the BREAKDOWN and select the ALL LOANS tab it shows that I have 420 loan parts, of which, 52 loan parts have status In Default totalling 15.19% of the invested capital. If I click the DEFAULT LOANS tab in the BREAKDOWN, it shows a Default Amount of £0.00 with an empty list of defaulted loans!!!
I have notified Kuflink about this who said they were passing it onto their developers, about a month ago, nothing since. It has been like this for years though. I have my first auto-invest ISA maturing on 3rd April so I'll see what happens then, I've set to repay. Still undecided if to re-invest after, I probably won't considering the general uneasy feeling on here and the system bugs etc.
I also asked them to confirm the ISA transfer out fee was dropped as it was still listed in the FAQs a few weeks back, it has been dropped, the FAQs have since been updated.
|
|