j
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Penguins are very misunderstood!
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Post by j on Apr 27, 2014 17:04:00 GMT
I wonder how much of Ippy & Eppy loans will be picked over the next few days before the cash back offer ends. Looking at how 'Ackney quickly disappeared over the last few days, those two might soon follow suit. Unless AC get a few loans up very quickly with attractive security/terms
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spockie
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Post by spockie on Apr 27, 2014 17:17:08 GMT
Andrew did say there will be two more loans that count, even if they don't make it onto the site before 30th April...
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j
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Penguins are very misunderstood!
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Post by j on Apr 27, 2014 17:23:02 GMT
It's a balancing act between waiting possibly till after 30th Apr (if that turns out to be the case) to see if the new loans are on a par or better than what's listed on AM currently or, taking the plunge & buying some units from AM as is to take advantage of cashback.
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mikes1531
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Post by mikes1531 on Apr 28, 2014 1:08:33 GMT
It's a balancing act between waiting possibly till after 30th Apr (if that turns out to be the case) to see if the new loans are on a par or better than what's listed on AM currently or, taking the plunge & buying some units from AM as is to take advantage of cashback. I suspect this might have provided some of the impetus to the H****ey sellout, as some lenders may have bought into that loan thinking that, since the underwriters soon would be out of the picture, it should be easier to sell parts of that loan in the near future when diversification opportunities present themselves. With the underwriters stilll having large holdings of Ip****h and Ep***g, it may be some considerable time before parts of those loans can be sold on the AM at any significant speed. Anyone buying those now to take advantage of the cashback offer needs to be prepared to hold those parts for a while.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Apr 28, 2014 8:30:01 GMT
I was wondering whether loan parts from normal lenders were actually prioritised over underwriters' parts being sold on the AM now that you can't choose because one day last week when I decided to buy 5 parts from one of the AM loans that have many thousands of underwriter funds for sale, one of the 5 parts I was offered belonged to a normal lender.
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Post by Ton ⓉⓞⓃ on Apr 28, 2014 8:46:35 GMT
I was wondering whether loan parts from normal lenders were actually prioritised over underwriters' parts being sold on the AM now that you can't choose because one day last week when I decided to buy 5 parts from one of the AM loans that have many thousands of underwriter funds for sale, one of the 5 parts I was offered belonged to a normal lender. No, AC try to give them equal chance of being bought. Apparently this is part of the agreement that AC has with the u/wers. Though obviously the chance depends on how many parts you're selling on the AM and how many others there are from the u/wers, I'm sure you're well aware of how chance will work. The system used to be that you could see who was who and decide who to buy from, that changed about a month ago I think.
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markr
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Post by markr on Apr 28, 2014 12:19:22 GMT
It seems like the AM has just become a place where I can sell and not buy. Is anyone else finding that auto-invest has killed the AM for them? No, quite the opposite, in fact. I've picked up parts in loans I'd never have expected to get by watching for them to appear on the AM manually. When AI was launched, I spent a bit of time setting up mandates for any past loans that I liked the look of (including, in my enthusiasm, some that had long since been paid off, but I think that "feature" has been disabled now) and AI has been steadily collecting them for me.
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mike
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Post by mike on Apr 28, 2014 12:40:33 GMT
I set up seven mandates for loans one week ago. Since then one has filled.
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Post by yorkshireman on Apr 28, 2014 13:10:03 GMT
Is anyone else finding that auto-invest has killed the AM for them? In a word, yes.
I have had several mandates set up since auto invest launched, or at least my account says I have, with cash always available and have bought precisely nothing.
Perhaps I have set it up incorrectly despite making two enquiries as to how to go about this, in which case could it be too complicated if, like me, you are not a computer geek?
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Post by mrclondon on Apr 28, 2014 13:28:50 GMT
I was wondering whether loan parts from normal lenders were actually prioritised over underwriters' parts being sold on the AM now that you can't choose because one day last week when I decided to buy 5 parts from one of the AM loans that have many thousands of underwriter funds for sale, one of the 5 parts I was offered belonged to a normal lender. No, AC try to give them equal chance of being bought. Apparently this is part of the agreement that AC has with the u/wers. Though obviously the chance depends on how many parts you're selling on the AM and how many others there are from the u/wers, I'm sure you're well aware of how chance will work. The system used to be that you could see who was who and decide who to buy from, that changed about a month ago I think. AFAIK the AM list is in time order of when the sell request was made. So manually selecting loan parts from the end of the list is more likely to feed funds back to normal lenders. Last week I selected c. 20 parts from the Hackney loan this way, and none of them were underwriter parts.
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Post by mrclondon on Apr 28, 2014 13:35:14 GMT
Is anyone else finding that auto-invest has killed the AM for them? In a word, yes.
I have had several mandates set up since auto invest launched, or at least my account says I have, with cash always available and have bought precisely nothing.
Perhaps I have set it up incorrectly despite making two enquiries as to how to go about this, in which case could it be too complicated if, like me, you are not a computer geek?
AI hasn't bought much for me other than parts in Bolton on several days. But AIUI it favours those with low amounts already in the loan, so I wasn't really expecting it to buy much as I already have 4 figure sums in most loans. I initially skipped on Bolton though as I couldn't face the initial bidding war when it listed.
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Post by chris on Apr 28, 2014 14:11:07 GMT
It is currently weighted in that way but is almost certain to change to a hopefully more balanced approach in the next few weeks. I'm still collecting data so that I can test out various theories as to how to approach making it as fair as possible to lenders of all sizes.
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Post by yorkshireman on Apr 28, 2014 15:08:00 GMT
When I suggested that AI could be too complicated I was referring specifically to buying loan parts on the aftermarket.
I would have thought that most buyers know how much they wish to buy of a particular loan be that £100 or £10k therefore why complicate the process by having facilities for target investment, pre bid and bid, surely it would be more straightforward and logical to ask AI to buy £X worth of parts in loan Y than the current method?
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Post by Ton ⓉⓞⓃ on Apr 28, 2014 15:35:13 GMT
When I suggested that AI could be too complicated I was referring specifically to buying loan parts on the aftermarket.
I would have thought that most buyers know how much they wish to buy of a particular loan be that £100 or £10k therefore why complicate the process by having facilities for target investment, pre bid and bid, surely it would be more straightforward and logical to ask AI to buy £X worth of parts in loan Y than the current method?
I think AC said that the "% Target" part might not make a lot of sense now but in the next step (or upgrade) it will make much more sense. I didn't notice at first but the old bid button is still there you just need to click on it to bring it forward. AI has bought a few items of stock that I didn't have and one I think where I already had a little. I'm talking about a couple of hundred pounds in total for everything. At the moment I think the Cashback is making people more cautious of selling. As mikes1531 was saying a few hours ago, when the 8 odd loans drawdown this will presumably push something on to the AM as people pay for shadow bids and others try to spread the risk. And there'll be a similar effect when we hit the 1st of May and the cashback ends. I'm holding some cash in reserve for that opportunity.
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Post by chris on Apr 28, 2014 16:10:57 GMT
I get AC says they want to favor small investors. However, an AM system that discriminates against medium sized retail investors results in an AM I can't really use. Since I refuse to become an underwriter (since I won't give AC discretion to deploy my capital in loans I wouldn't touch with a bargepole) this does leave me slightly in no man's land. There's a lot of things I like about AC but I don't totally understand why their vision of a lender seems to be either a person investing £100 or somebody investing £100k in a loan, with nothing much in between. That's the one thing TC does have over AC (and that might be the only thing but ...). We absolutely want to support investors of all sizes but that is a very complicated and nuanced goal that we will need to constantly balance. For example if a hypothetical institutional investor looking to invest £1m in a £1.5m loan on the aftermarket made their way to the front of the queue should their order be fulfilled before anyone else gets a look in? Equally if there is a flood of small investors all with £10 to stick in should the diversification of their portfolio take priority over those with more to invest by spreading loan units over the widest number of people possible? Those may be extreme examples but we need to find a way to balance the needs of all size of lender, helping everyone deploy their cash. The problem for all lenders is that there will always be someone with more money than them just round the corner, and if we bias things in favour of those with more money then even those with hundreds of thousands of pounds to invest could lose out to larger investors down the road. It is very important to us as a platform to keep the crowd in crowd lending so we need to be proactive in stopping this from happening, but as we grow we will need the large investors just as much as our smaller lenders. I have a variety of ideas from using a weighted randomised strategy that biases towards those who have been in the queue the longest as well as those with the smallest amounts invested, but still gives a reasonable probability of any lender being able to snatch a loan unit; through to varying the strategy on a loan unit by loan unit basis so all user groups get a shot at some loan units. But I need to model all these solutions using the real world data we're now able to gather to work out which is going to work the best. Edit: I should add that this does only affect our aftermarket. Our primary markets are still open to all investors on a first come first served basis.
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