mikes1531
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Post by mikes1531 on Apr 28, 2014 16:28:17 GMT
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 statement seems at odds with a statement AC made earlier regarding underwriter participation in Auction 87. IIRC, AC said then that they had shown Auction 87 to a number of underwriters and some had declined to join in supporting that loan. That suggests that AC do not have complete discretion over the use of U/W funds. I wonder if andrewholgate -- or anyone else at AC -- would care to shed a bit light on this issue. Was Auction 87 a special case where AC chose not to use the discretion they have?
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Post by chris on Apr 28, 2014 16:32:54 GMT
I can only speak with arms length experience but I believe that general criteria are laid down but discretion remains with the underwriter on a case by case basis, I don't know if / what the penalty would be should an U/W continually refuse to invest. The last figure I heard was £250k as a minimum investment amount. There are financial benefits but I don't know what they are, nor would I expect them to be openly disclosed. If anyone is genuinely interested then please talk to either Dom or Martin - phone numbers are available on our website.
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Post by oldnick on Apr 28, 2014 16:46:42 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. , I nominate you for the Wisdom of Solomon Award. OK so I just made it up, I'm still nominating you for it.
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agent69
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Post by agent69 on Apr 28, 2014 18:03:11 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? I set up auto invest when it first became available and topped up my account in anticipation. Still waiting for my first nibble. If things don't improve this week I'll be moving the money in the opposite direction.
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j
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Post by j on Apr 28, 2014 21:49:45 GMT
Despite having a large number of mandates set up, I haven't been able to buy a single thing on the AM since the auto-invest process was launched. I've always had some cash in the account but I get nothing. Obviously I can buy some of the larger underwritten stuff but I often have enough of that. 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? My experiences are similar. With the old system at least I had the odd opportunity to buy the odd unit here & there whereas it's been zilch since the new system arrived despite having many AI orders set up in loans I have no presence in! Alas the old system is gone forever. You never know, I might get lucky one day & have a change of heart
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walktall7
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Post by walktall7 on Apr 29, 2014 10:05:05 GMT
There is some Re****** Com***** Pr******
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agent69
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Post by agent69 on Apr 29, 2014 17:22:28 GMT
3 L to L's and No 53 available,
I assume the midlands property is showing because nobody wants it on auto invest?
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mikes1531
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Post by mikes1531 on Apr 29, 2014 18:19:29 GMT
3 L to L's and No 53 available, I assume the midlands property is showing because nobody wants it on auto invest? Only one LtL left now. There was a lot of No. 53 released today by underwriters. Nearly all of that has gone. People may have used AutoInvest to set a target slightly above their existing level of holdings and bought the difference as soon as the parts were put up for sale. Now that's happened, they might push their target up a bit more and buy more. Or perhaps there wasn't enough free cash available in their account, so AI had to stop buying before reaching the target. In that case, as soon as more money is deposited AI will spring into action again -- if any parts are left for sale by then.
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j
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Penguins are very misunderstood!
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Post by j on Apr 29, 2014 18:48:33 GMT
People must have had their fill of ltl1 with 5 units still available for the last hour or so! Picked a couple myself for once to diversify
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mikes1531
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Post by mikes1531 on Apr 29, 2014 18:55:29 GMT
People must have had their fill of ltl1 with 5 units still available for the last hour or so! Picked a couple myself for once to diversify
Compared to more recent offerings, 6.5% interest doesn't look particularly attractive. But those parts do come to market occasionally, and they do seem to sell -- surprisingly quickly, in my view. I wonder what sort of reaction would result if a loan on those terms was offered as a new lending opportunity today?
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agent69
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Post by agent69 on Apr 29, 2014 18:58:57 GMT
People must have had their fill of ltl1 with 5 units still available for the last hour or so! Picked a couple myself for once to diversify
Compare to more recent offerings, 6.5% interest doesn't look particularly attractive. But those parts do come to market occasionally, and they do seem to sell -- surprisingly quickly, in my view. I wonder what sort of reaction would result if a loan on those terms was offered as a new lending opportunity today? Think I would prefer the 5yr Ratesetter offering at about 5.9% with the provision fund.
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j
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Penguins are very misunderstood!
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Post by j on Apr 29, 2014 19:01:00 GMT
Compare to more recent offerings, 6.5% interest doesn't look particularly attractive. But those parts do come to market occasionally, and they do seem to sell -- surprisingly quickly, in my view. I wonder what sort of reaction would result if a loan on those terms was offered as a new lending opportunity today? Think I would prefer the 5yr Ratesetter offering at about 5.9% with the provision fund. The loan is still backed by assets (the property itself) & offers a good diversification option, albeit at a much lower rate than current offerings
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andy2001
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Post by andy2001 on Apr 29, 2014 19:02:50 GMT
Compare to more recent offerings, 6.5% interest doesn't look particularly attractive. But those parts do come to market occasionally, and they do seem to sell -- surprisingly quickly, in my view. I wonder what sort of reaction would result if a loan on those terms was offered as a new lending opportunity today? Think I would prefer the 5yr Ratesetter offering at about 5.9% with the provision fund. Ratesetter 5yr is no good if you want all the money back before 5 years, as they screw you if you want it back early.
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mikes1531
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Post by mikes1531 on Apr 29, 2014 19:57:20 GMT
Think I would prefer the 5yr Ratesetter offering at about 5.9% with the provision fund. Ratesetter 5yr is no good if you want all the money back before 5 years, as they screw you if you want it back early. That may be a bit harsh on RS inasmuch as their fees for early exit are known at the time of investment, but the fees do seem rather steep.
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mikes1531
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Post by mikes1531 on Apr 30, 2014 15:40:37 GMT
Just for the record, autoinvest seems to be working as expected on the AM for me - perhaps it depends on the popularity of the particular loans you mandate? I have 7 loans mandated but autoinvest has only picked up parts in 4 of them. A little over £7k in the past few weeks. I suspect it all depends on whether you want more of the same loans that everyone else wants more of -- and those who have it want to keep -- or vice versa.
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