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Post by chris on Mar 2, 2015 19:25:51 GMT
chris: back to a question I raised on my original post. With all this churning (intra day on same loans) what is the score w.r.t. recognition for interest ? Is it based on net holding at end of each day ? Want to be sure that the constant sell/buy of loan parts of the same loan multiple times a day is not impacting negatively on the interest received. [Note:I currently have only a trival £80 holding in GEIA and am not minded to put any more in until I understand its operation more]. It's currently based on net holdings at each midnight throughout the repayment period. We can easily calculate holdings to the second throughout the period but felt that was too complex a change from the old platform at the time we set the current system live. There's a refactoring of the code in the works that will help stop the churning. My understanding is that it's caused by two competing bits of code trying to rebalance people's accounts but with the current limited supply of loans it's not working optimally causing the churn.
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bugs4me
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Post by bugs4me on Mar 2, 2015 19:39:34 GMT
chris: back to a question I raised on my original post. With all this churning (intra day on same loans) what is the score w.r.t. recognition for interest ? Is it based on net holding at end of each day ? Want to be sure that the constant sell/buy of loan parts of the same loan multiple times a day is not impacting negatively on the interest received. [Note:I currently have only a trival £80 holding in GEIA and am not minded to put any more in until I understand its operation more]. It's currently based on net holdings at each midnight throughout the repayment period. We can easily calculate holdings to the second throughout the period but felt that was too complex a change from the old platform at the time we set the current system live. There's a refactoring of the code in the works that will help stop the churning. My understanding is that it's caused by two competing bits of code trying to rebalance people's accounts but with the current limited supply of loans it's not working optimally causing the churn. And the 20% rule chris - surely this must be having an impact unless there are at least 5 x WT's available for purchase. If I invest say £100 and there are only 2 WT's then it follows that only £40 on my GEIA will be funded to earn the projected 7%. Is there not a way this can be relaxed during a WT famine?
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Post by chris on Mar 2, 2015 19:44:32 GMT
It's currently based on net holdings at each midnight throughout the repayment period. We can easily calculate holdings to the second throughout the period but felt that was too complex a change from the old platform at the time we set the current system live. There's a refactoring of the code in the works that will help stop the churning. My understanding is that it's caused by two competing bits of code trying to rebalance people's accounts but with the current limited supply of loans it's not working optimally causing the churn. And the 20% rule chris - surely this must be having an impact unless there are at least 5 x WT's available for purchase. If I invest say £100 and there are only 2 WT's then it follows that only £40 on my GEIA will be funded to earn the projected 7%. Is there not a way this can be relaxed during a WT famine? Still being debated internally - we could relax the rule on individual accounts but still apply it at the provision fund level to make sure there isn't over exposure there. We can then rebalance lender accounts within the account so all lenders end up with roughly the same split in each loan (already an active project currently being tested). This would allow for temporarily exceeding the 20% rule before then returning to a diversified state. But this needs a fair bit of work internally to make sure it's compliant, enact the change to the terms, etc. It could also see us close the GEIA series 1 to new investment and create a series 2 account. So there's a lot to discuss before we can take action. I've been promised there are more green loans coming through the pipeline and that the current famine will be address shortly which will help regardless of the technical solution.
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bugs4me
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Post by bugs4me on Mar 2, 2015 20:28:32 GMT
And the 20% rule chris - surely this must be having an impact unless there are at least 5 x WT's available for purchase. If I invest say £100 and there are only 2 WT's then it follows that only £40 on my GEIA will be funded to earn the projected 7%. Is there not a way this can be relaxed during a WT famine? Still being debated internally - we could relax the rule on individual accounts but still apply it at the provision fund level to make sure there isn't over exposure there. We can then rebalance lender accounts within the account so all lenders end up with roughly the same split in each loan (already an active project currently being tested). This would allow for temporarily exceeding the 20% rule before then returning to a diversified state. But this needs a fair bit of work internally to make sure it's compliant, enact the change to the terms, etc. It could also see us close the GEIA series 1 to new investment and create a series 2 account. So there's a lot to discuss before we can take action. I've been promised there are more green loans coming through the pipeline and that the current famine will be address shortly which will help regardless of the technical solution. Thanks for the reply chris. I did try out the GEIA mk1 and it did breach the 20% rule. Achieved 69% with three loans and then bailed out as I was never going to get my 1k fully invested to achieve the projected 7%. I'll wait until or if AC relax the 20% rule so it becomes worthwhile. I'm sure if I had jumped in earlier when the SM was 'flooded' with WT's then it wouldn't have been a problem. On the positive side, at least the SM is no longer awash with WT loan parts so the GEIA mk1 has done it's job.
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Post by crabbyoldgit on Mar 5, 2015 20:29:12 GMT
Hi I joined the geia about a month ago,the type of risk adverse,hands off type it's built to attract.However apart for a very short period I have been unable to get more than about 95 per cent invested.So in a flash of stupidity I took out the uninvested money and invested it in a wind turbine in the manual market, all monies now invested.No the geia instantly sold off parts to return it to 95 percent.So it seems we all share the same portion of the available loan book, modified a bit by the 20 per cent rule ,regardless of our history in the geia.This means I think if a large manual loan comes to term and repays it's capital and the investers dump the funds into the geia as a temporary holding pot the loan parts will be stripped off the long term members.They will then pay the cost in lost interest to the new temporary members,fine for some but feels a little unfair.We need more New loans but with the NI loan going west can not see it.I was going to put 10000 in but in this position what is the point
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bugs4me
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Post by bugs4me on Mar 5, 2015 20:44:04 GMT
Hi I joined the geia about a month ago,the type of risk adverse,hands off type it's built to attract.However apart for a very short period I have been unable to get more than about 95 per cent invested.So in a flash of stupidity I took out the uninvested money and invested it in a wind turbine in the manual market, all monies now invested.No the geia instantly sold off parts to return it to 95 percent.So it seems we all share the same portion of the available loan book, modified a bit by the 20 per cent rule ,regardless of our history in the geia.This means I think if a large manual loan comes to term and repays it's capital and the investers dump the funds into the geia as a temporary holding pot the loan parts will be stripped off the long term members.They will then pay the cost in lost interest to the new temporary members,fine for some but feels a little unfair.We need more New loans but with the NI loan going west can not see it.I was going to put 10000 in but in this position what is the point I don't believe it does work ATM in order to achieve the 7% projected. Unless AC can allow flexibility on the 20% rule or until there are at least 5 WT's available then I cannot see how you can get 100% investment. It follows that the 7% projected only applies to invested funds and not all funds deposited. If/when a mk2 is released which allows more flexibility then it's not for me. I tried and bailed out - still got 21p left to be sold so no big deal. What it did manage to do though when first launched was mop up the surplus WT loans available on the AM - no doubt mostly being offloaded by underwriters.
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Post by phoenix on Mar 6, 2015 11:09:21 GMT
About 20% of my GEIA total (a four figure sum) is currently uninvested about a week after doubling my stake in it.
I've been struggling timewise recently and haven't followed the discussion, but looking at the GEIA statement, the four most recent substantial (£100) transactions have all been sales, and £300 of one loan was bought and then sold again within the space of two minutes on Monday, which is very puzzling.
I don't suppose anybody really understands it, but can some kind soul give me an "educated" guesstimate on whether I can expect that 20% figure to reduce significantly over, say, the next week or two?
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bugs4me
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Post by bugs4me on Mar 6, 2015 12:09:07 GMT
About 20% of my GEIA total (a four figure sum) is currently uninvested about a week after doubling my stake in it. I've been struggling timewise recently and haven't followed the discussion, but looking at the GEIA statement, the four most recent substantial (£100) transactions have all been sales, and £300 of one loan was bought and then sold again within the space of two minutes on Monday, which is very puzzling. I don't suppose anybody really understands it, but can some kind soul give me an "educated" guesstimate on whether I can expect that 20% figure to reduce significantly over, say, the next week or two? I have no idea as when I looked at my statement it was selling pennies of loans one minute then buying back an identical amount for the same loans the next. It all seemed to be a bit frantic in the background so no doubt the algorithm was on double pay overtime rate. Not much help but chris may be able to explain things if he's around.
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Post by chris on Mar 6, 2015 13:21:58 GMT
About 20% of my GEIA total (a four figure sum) is currently uninvested about a week after doubling my stake in it. I've been struggling timewise recently and haven't followed the discussion, but looking at the GEIA statement, the four most recent substantial (£100) transactions have all been sales, and £300 of one loan was bought and then sold again within the space of two minutes on Monday, which is very puzzling. I don't suppose anybody really understands it, but can some kind soul give me an "educated" guesstimate on whether I can expect that 20% figure to reduce significantly over, say, the next week or two? I have no idea as when I looked at my statement it was selling pennies of loans one minute then buying back an identical amount for the same loans the next. It all seemed to be a bit frantic in the background so no doubt the algorithm was on double pay overtime rate. Not much help but chris may be able to explain things if he's around. The system will put up for sale any loan units that exceed the diversification rules even if there's nothing else to invest in. So if you withdraw some cash it needs to sell loan units to rebalance your account. The oscillation in buying and selling is a result of the way our system is currently structured where it's trying to diversify your portfolio more evenly but makes a small miscalculation as to absolute availability in other loans and ends up buying back into the same loan in order to deploy cash. I'm half way through a major refactoring of the code that controls all of this in order to make the whole process far more elegant and logical and to carry out diversification without buying and selling. I'll post an update on Monday with more detail.
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mikes1531
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Post by mikes1531 on Mar 6, 2015 19:10:17 GMT
It all seemed to be a bit frantic in the background so no doubt the algorithm was on double pay overtime rate. I don't know about overtime, but I must say it looks like the algorithm is being paid on a piecework basis. 
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Post by crabbyoldgit on Mar 7, 2015 19:28:54 GMT
Hi Phoenix I got to about 95 per cent in 4 weeks since then it just goes up and down a bit.I think at present there is more investment moneys than total loan available maybe because of a lack of loans in the manual market and people parking cash in the geia until opportunities appear.Maybe people will need to sell soon to raise cash to put in the assetz equity raise and things will improve I hope so as I would like to put more in myself
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mikes1531
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Post by mikes1531 on Mar 7, 2015 22:00:11 GMT
Maybe people will need to sell soon to raise cash to put in the assetz equity raise and things will improve...
I suspect most of the money for the AC fundraising has been transferred to Seedrs already. It was due last weekend, and they've been sending emails to investors this week warning them that AC could close the offer at any time without warning and if they did that the potential investors would lose the opportunity to get AC shares. I know AC have said they're willing to accept £3M from the Seedrs investors, but if their negotiations with institutional investors reaches the point where sufficient money is available then they'd probably be smart to take the money and run. Besides why offer more discounted shares to the Seedrs investors than they have to?
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gt94sss2
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Post by gt94sss2 on Mar 8, 2015 3:50:20 GMT
I wonder what impact this will have on AC and the GEIA if Labour come to power at the election? |
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koba
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Post by koba on Mar 8, 2015 8:15:20 GMT
I have been off this forum and off the platform for a while so forgive me if this question has already been asked and answered but I am unsure as to why individual GEIA accounts are buying and selling the underlying DOs directly. The obvious thing to do would be to 'unitize' the account with investors buying a share of a changing pool of loans. Does anyone know why this was not done? I suspect there is some regulatory angle here.
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Post by mrclondon on Mar 8, 2015 11:25:10 GMT
I wonder what impact this will have on AC and the GEIA if Labour come to power at the election? Thanks for the link, an interesting idea for sure. As regards AC, they haven't been very successful in the recent past of landing the CU sponsored wind turbines, with both Relendex and Funding Knight having loans live in February, and Funding Knight have a loan live currently - 9.75% partially amortizing so similiar terms. Edit: FK loans are ready to draw down at the conclusion of the auction, so just like AC there is no deadtime.
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