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Post by clarcombe on Feb 8, 2015 18:17:34 GMT
Having read/skimmed all of the threads, I have gleaned this
1) Assetz seem to be one of the best if not the best P2P operator in terms of DD and recovery
2) Very few deals in the pipeline leading to frustration as investors can't invest
3) The deals that are announced take a long time to draw down (presumably due to the DD and other factors)
4) A reasonable? amount of defaults but so far no capital lost (what about interest though)
5) A less than perfect set of business rules to apply accrued interest
6) Only a few loans available for current investment (12?)
I have been looking as an investor and a borrower (for another property business I am involved in). Could anyone give me some feedback as to interest repayments and things generally going right ?
My guess is that each loan must be seriously examined in its own right before investing? I was hoping that Assetz had done most of the legwork to ensure that it is a good reliable investment.
Many Thanks
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Post by mrclondon on Feb 8, 2015 18:50:40 GMT
Picking up a few of your points:
4)
No interest lost to date as far as I am aware.
2) and 6)
The loanbook currently has 77 live loans (a few of which are multiple tranches, I think 4 extra to Midland Finance, and 1 extra to London Retail) so I think its 72 borrowers. 14 loans are currenlty "investments paused" (but some of those are due to payments due this weekend not having being processed yet).
So I make it 58 borrowers who have loans available for investment this Sunday evening. If you set an investment target in all those loans, and have cash in your MLIA, you WILL be allocated a share of those loans as soon as a sale transaction is initiated. A significant propertion of those 58 loans have availability each and every week. I am re-investing repayments of £££ per day normally within 2 or 3 hours into a wide variety of loans - yes its frequently only a few quid into each of a dozen plus loans.
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Post by clarcombe on Feb 8, 2015 18:53:34 GMT
I got the 12 figure by downloading the CSV file and then filtering on the Units available column (greater than 0). Does this mean other units are available in other loans but not shown in the CSV ?
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Post by batchoy on Feb 8, 2015 18:59:41 GMT
Picking up a few of your points:
4) No interest lost to date as far as I am aware.
No actual interest lost but consequential losses due to administrative errors by AC staff. I had holdings in loans which had the interest posted to the wrong month where I had sold the capital just before the borrower's repayment only for it to be applied to the following month so I received nothing and had to wait a further month for money which had been paid by the borrower but was incorrectly handled by AC, and no interest was paid by AC on the interest that they had failed to pay.
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Post by chris on Feb 8, 2015 19:00:38 GMT
Having read/skimmed all of the threads, I have gleaned this 1) Assetz seem to be one of the best if not the best P2P operator in terms of DD and recovery 2) Very few deals in the pipeline leading to frustration as investors can't invest 3) The deals that are announced take a long time to draw down (presumably due to the DD and other factors) 4) A reasonable? amount of defaults but so far no capital lost (what about interest though) 5) A less than perfect set of business rules to apply accrued interest 6) Only a few loans available for current investment (12?) I have been looking as an investor and a borrower (for another property business I am involved in). Could anyone give me some feedback as to interest repayments and things generally going right ? My guess is that each loan must be seriously examined in its own right before investing? I was hoping that Assetz had done most of the legwork to ensure that it is a good reliable investment. Many Thanks Welcome to the forum! 1) Yes, this is one of our main focuses and differentiators from our peers. 2) Our pipeline is very very healthy but there is a long lead time from a deal hitting our desks through to it being available for retail investors. December and January have been particularly quiet on that front, February and March are looking far far busier. 3) Drawdown times are directly related to the security we take although we are making steady improvements with this. Draw down times should no longer affect most of our investors though as they do not participate in pre-drawdown auctions, instead buying loan units on what used to be the secondary market after a loan has drawn down. 4) The primary example is FF where capital and normal interest have been recovered but we are still working on reclaiming the default interest and our fees. Our goal is to recover everything owed to investors however interest is slightly less likely to be recovered than capital and there will be losses at some point. 5) Not sure what you mean by this? The background process for accrued interest periodically fails and needs a kick due to "congestion" within the database, for want of a better phrase. This is easily fixed by giving it a kick and I'm working on a more efficient method of storing the accrued interest that won't be subject to the deadlock issues. 6) Edited out as already covered by MRCLondon.
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Post by batchoy on Feb 8, 2015 19:01:13 GMT
I got the 12 figure by downloading the CSV file and then filtering on the Units available column (greater than 0). Does this mean other units are available in other loans but not shown in the CSV ? All the current loans are available to trade unless they have problems in which case they are shown as being paused.
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Post by mrclondon on Feb 8, 2015 19:01:18 GMT
I got the 12 figure by downloading the CSV file and then filtering on the Units available column (greater than 0). Does this mean other units are available in other loans but not shown in the CSV ? The csv (or indeed the 'units available' tab) ONLY shows units for which there is no current demand from lenders (i.e. no targets with headroom and available cash). Generally the less popular loans including some that are VERY high risk. All the other loans when put up for sale will be split immediately between lenders who have a target set above the current holding and spare cash in the MLIA. These loan units will never appear as available in teh csv / units available tab because they are sold immediately. You're not the only one that seems to find this model confusing. (Which probably explains why I find it so easy to buy loan parts across the whole loan book)
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Post by bengilbert on Feb 8, 2015 19:02:57 GMT
To see which loans have units available, you can also click on 'units available' on the browse loans page (just below the black header, url is www.assetzcapital.co.uk/loans/available-parts?view=table)I make it 8 loans right now, plus 5 more which are later tranches of loans to existing borrowers. |
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sl75
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Post by sl75 on Feb 8, 2015 19:29:36 GMT
There does seem to be a common theme of newbies misinterpreting the "units available" section, apparently thinking these are the only loans they can invest in.
(in a very short-term sense, yes these are the only ones you can be sure to invest in within the space of a few minutes, but there are many other loans that have an almost continuous supply of newly-available units that get bought up as soon as they're made available, and a new investor can get exposure to plenty more loans within the space of a few days if they set targets on them).
Perhaps Assetz need to do more to avoid this common misunderstanding?
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Post by mrclondon on Feb 8, 2015 19:43:12 GMT
There does seem to be a common theme of newbies misinterpreting the "units available" section, apparently thinking these are the only loans they can invest in. (in a very short-term sense, yes these are the only ones you can be sure to invest in within the space of a few minutes, but there are many other loans that have an almost continuous supply of newly-available units that get bought up as soon as they're made available, and a new investor can get exposure to plenty more loans within the space of a few days if they set targets on them). Perhaps Assetz need to do more to avoid this common misunderstanding? Agreed. One thing that has been suggested periodically over recent months is a summary of sales by loan over a rolling period (e.g. the last 28 days). As well as helping newbies understand the way AC works, it would also IMO help with overall liquidity as I would be more willing to bring new funds into AC (as opposed to say TC or SS) if I could see the typical availability of particular loans I would like to increase my exposure to. Flagging this post to catch andrewholgate's attention.
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Post by clarcombe on Feb 8, 2015 20:31:22 GMT
The mist is slowly clearing but the plot thickens!
Thanks for your comments. I shall reread and digest
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am
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Post by am on Feb 8, 2015 20:53:48 GMT
I got the 12 figure by downloading the CSV file and then filtering on the Units available column (greater than 0). Does this mean other units are available in other loans but not shown in the CSV ? That's where the Assetz Capital website can be misleading. It caused me to delay signing up. The Units available filter selects loans for which parts are *immediately available*, which is primarily loans for which the underwriters are offloading their stock. There is a trickle of parts (commonly referred to as shrapnel) becoming available on other loans. These rarely become visible as they are snapped up by lenders who have set an investment target on those loans. Once I had understood how the system works it took me about a month to reach an investment of nearly £100 in one of the wind turbine loans (as opposed to 3 others which had visible Units available, which took hours). On the other hand so far I only have £4.85 in W*** D*** Loan, after more than a week. You might consider it a problem that you have money sitting there waiting for units to become available. But the unsatisfied sum of your investment targets can exceed the amount of money you have in your account, so you can add money in stages as a smaller float is soaked up. Now that the liquidity problem with the GEIA has been fixed it might even be possible to use that as a temporary interest earning home for your money. (Not having experimented with this myself I can't say whether the timescale to get money out and available for investment elsewhere is hours or days; I doubt that it is as long as weeks. It might well be quicker than getting money from your bank account to your AC account, which is quite slow.)
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mikeb
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Post by mikeb on Feb 8, 2015 21:23:15 GMT
5) A less than perfect set of business rules to apply accrued interest 5) Not sure what you mean by this? The background process for accrued interest periodically fails and needs a kick due to "congestion" within the database, for want of a better phrase. This is easily fixed by giving it a kick and I'm working on a more efficient method of storing the accrued interest that won't be subject to the deadlock issues. I'll prefix this with a comment to say a lot of this has improved since last year, but not entirely gone away ... I think what you're referring to is ... 5a) Some loans have interest apparently accruing at one rate, but are in fact accruing at a higher (default) rate. There seems to be no clear way to show a loan in default due to a reversible situation, e.g. very late payment (Wood****, CC L***) -- the default interest is calculated off the books and handled separately. 5b) Some loans will spontaneous revert to £0.00 accrued for no reason. Not due to a payment. Bonus: Earlier this week they ALL did this (as reported to MW, are you aware?) -- usually reappears correctly. 5c) Some loans will show interest still accrued for up to a day AFTER the payment has been made successfully. It should go to £0.00 when payment is made, but usually fixes overnight. 5d) Sometimes accrued interest on a loan will go backwards. I have no explanation or defence for that. It can't be a rounding error, and if there is tinkering behind the scenes, it would be good to know why. That's just on the accrued interest/rates 
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mikeb
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Post by mikeb on Feb 8, 2015 21:27:59 GMT
There is a trickle of parts (commonly referred to as shrapnel) becoming available on other loans. These rarely become visible as they are snapped up by lenders who have set an investment target on those loans. I suspect you will find that when some new loans come through, not only will you be able to pick up chunks of the new ones (obviously), but some of the older ones will become available. This is because some people will be spreading across from older loans (by selling them) into the new ones. In the process, they will generate parts that new investors will pick up. But only if you set some targets for them! Otherwise you will never see them -- the speed of the aftermarket matching is too high.
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Post by Deleted on Feb 9, 2015 10:33:06 GMT
All the newbies seem to be asking the same question regarding which loans are actually available to purchase parts from.
I was confused the same way, when I only looked at the units available and upcoming loans.
Maybe AC should do a splash screen or a small doc on some basic tips for new investors. I think some user education may be required, to avoid that recurring question.
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