coop
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Post by coop on May 15, 2015 17:25:30 GMT
That is essentially my thinking.
If autobid is being made more intelligent then in the long run I think it's good news as demand for the current 8% CB loans will diminish as people realise theyre not flippable.FC will potentially have to increase their offering, as we are seeing with the 11+1% offering, where over 10% Aer is achievable even if holding to term.
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Post by GSV3MIaC on May 15, 2015 17:41:00 GMT
I'm all for more intelligent autobuy, but Furry Critters ought tell us what they plan to do and when (IMO). Making it buy the best parts available is fine by me, as long as that includes making (or 'letting', pick your own terminology) it buy discounted parts (with a high buyer rate as a result), else it really damages liquidity. Like much of FC, their transparency (as quoted) is awfully opaque a lot of the time. If autobuy has stopped buying 8% A+ property parts at par, it ought at least have been rejigged to buy them at a discount (pick your own) or else they become unsaleable except to bots and bored humans. (I'm talking about ones where there is no primary market auction now, or even soon .. i.e. historic loans).
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SteveT
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Post by SteveT on May 16, 2015 6:39:38 GMT
Odd. I've had 3 property loan-parts sell at par since midnight, the first in more than 3 weeks. All 3 were 8%+2%CB loans with very large discounts available. 2 were to the same buyer but in different loans, so still could be Autobid. Anyone else seen a pick-up?
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blender
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Post by blender on May 16, 2015 7:15:06 GMT
Yes, I have sold two such parts in different loans to one person - pretty sure it was Autobid.
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registerme
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Post by registerme on May 16, 2015 10:09:53 GMT
How sensitive would the SM be to one new investor rocking up with x thousand using auto-bid to get invested and diversified?
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fasty
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Post by fasty on May 17, 2015 9:12:08 GMT
Sold several loan parts at par last night; albeit not quite up to "normal" expected quantities. Almost as if someone flicked a switch and turned SM back on.
I wonder why?
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Post by GSV3MIaC on May 17, 2015 10:00:01 GMT
Likewise .. sold a few, not as many as before. Maybe someone has set the switch to the middle position. 'Transparently', of course. 8>.
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SteveT
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Post by SteveT on May 17, 2015 10:09:52 GMT
I had another couple sell last night too. Perhaps it's dawned on Feeling Confused that closing off all existing property loans to Autobid in the SM had a direct impact on lenders' propensity to invest in the new ones, especially anything longer than 12 months. Will be interesting to watch whether liquidity picks up further or they try to keep Autobid demand "choked" at a low level (which won't really change anything).
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blender
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Post by blender on May 17, 2015 12:02:16 GMT
Same experience here. I agree with above analysis, and it all looks too devious. Transparency and trust issues with Fiddling Covertly.
I am now working on the assumption that they can list loans which Autobid will ignore.
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adrianc
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Post by adrianc on May 17, 2015 14:18:52 GMT
5% of outstanding parts-for-sale sold in the last 24hrs here, too.
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markr
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Post by markr on May 17, 2015 18:30:57 GMT
I've sold a load overnight too. Hopefully the handle has broken off the switch and it stays where it is.
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min
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Post by min on May 17, 2015 18:37:42 GMT
I've sold a load overnight too. Hopefully the handle has broken off the switch and it stays where it is. Only sold one but 1st for over a month.
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sl75
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Post by sl75 on May 17, 2015 23:20:55 GMT
Sold several loan parts at par last night; albeit not quite up to "normal" expected quantities. Almost as if someone flicked a switch and turned SM back on. I wonder why? Probably the effects related to the £650k loan that was repaid on Friday - huge piles of autobid money working back through the system.
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Post by GSV3MIaC on May 18, 2015 20:41:49 GMT
Guess that could also explain why they chose to list 26 (?) new loans on Friday, knowing the wave of cash was about to appear. Still not convinced that is all the explanation though - that should have been a one-time Friday/Saturday shock, whereas sales at par seem to be up for the last 2-3 days (unless of course autobuy is being really slow about deploying it).
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registerme
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Post by registerme on May 18, 2015 20:47:37 GMT
Equally, if they did use their own balance sheet to get some loans across the line, presumably they'd want to reduce their own exposure / risk. If they can't repackage PL parts as a WL to somebody, they should be using the SM. If they're using the SM without rigging it in their favour (my assumption is that they are not), then they are as reliant on auto-bid as we are...... To get that working they should reduce new loan offerings.
Something doesn't add up in my analysis though  .
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