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Post by gterr on Aug 5, 2015 18:54:48 GMT
Hi,
I've had the email but not sure how to interpret it. Should I be trying to pull out, or investing more? Can anyone help this newbie? Cheers.
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pikestaff
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Post by pikestaff on Aug 5, 2015 21:35:19 GMT
...The other I'm guessing; house building/L2L Which implies you don't think these are in the GBBA. Why not? I will ask a question about this on the GBBA thread.
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Post by mitosan on Aug 5, 2015 21:54:02 GMT
Hi,
I've had the email but not sure how to interpret it. Should I be trying to pull out, or investing more? Can anyone help this newbie? Cheers. Don't invest in things you don't understand  For what it's worth I've just pulled out of it, I've been thinking about it for a few weeks as I think I can do better than 7% (including on the MLIA) and the email just gave me the push I needed to do it. Following my own advice too, I don't understand the risks enough now and it feels like it's at the whim of the Chancellor.
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pikestaff
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Post by pikestaff on Aug 5, 2015 23:00:45 GMT
I don't think there is any direct threat to existing projects. I am confident that the government will not renege on existing commitments (including pre-accreditations already given), and that if it were to try to do so it would be defeated in court. What the giovernment will do is change the rules for new projects - initially by removing pre-accreditation. This will make funding for those projects more difficult and expensive, with the result that fewer go ahead.
There should still be an opportunity for AC lenders, albeit a smaller opportunity because there will be fewer projects to fund. However, I would expect the gross rates demanded (outside of the GEIA) for projects that are not pre-accredited to be significantly higher and I would also expect to see more caution on LTVs.
Some relevant extracts from the consultation document (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447314/FITs_pre-accreditation.pdf):
1.10 We propose to remove pre-accreditation and pre-registration from the FIT scheme. This will have the effect of removing the link to the tariff guarantee for installations currently able to pre-accredit under the FIT, such that installations will only receive the tariff rate as at the date they apply for full accreditation...
1.16. By removing the possibility for projects to pre-accredit, there is less certainty on offer to developers. When they begin to develop a project, they will not be certain as to what tariff they will receive, as there may be tariff degressions between then and the point of accreditation...
1.17. Such a change is likely to affect medium-scale commercial stakeholders and larger developers’ ability to secure funding, and to secure it under similar terms as are currently available in the market.
1.18. ...It is likely ... that funding providers will apply higher discount rates to expected project cash flows, making funding more expensive. This change may also mean that projects will either be able to raise less debt (assuming that debt providers will size their loans on the worst possible tariff scenario) or have to be equity-funded for longer, with debt (or cheaper equity) only coming in at a later stage of construction, when the risk of a tariff change is seen as lower...
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caesium
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Post by caesium on Aug 27, 2015 13:53:46 GMT
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 27, 2015 14:01:32 GMT
No, theyre aernt any solar power loans on the platform at all TMK. The one that was got pulled before drawdown because of the govt policy changes. (Not including ET)
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Post by phlitb on Sept 7, 2015 19:36:42 GMT
chris, my GEIA has gone crazy and at the time of writing thinks it has 3K+ more in it than it should. Unfortunately for me my dashboard somehow knows that this windfall isn't real and my total investment remains unaffected
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jo
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Post by jo on Oct 9, 2015 14:26:08 GMT
As an aside, today I calculated the standalone XIRR on the GEIA component of an account I operate: Opened account in early Jan 2015, fairly regular trickle deposits, current XIRR 6.4%. 4 months on from the above, my XIRR on GEIA has dropped to a rather lacklustre 5.55%. Not really sure exactly why - it's been (mostly) fully invested since Jun....with a few delays on small amounts.
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mikes1531
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Post by mikes1531 on Oct 9, 2015 15:05:56 GMT
As an aside, today I calculated the standalone XIRR on the GEIA component of an account I operate: Opened account in early Jan 2015, fairly regular trickle deposits, current XIRR 6.4%. 4 months on from the above, my XIRR on GEIA has dropped to a rather lacklustre 5.55%. Not really sure exactly why - it's been (mostly) fully invested since Jun....with a few delays on small amounts. I really don't understand what's happening in my GEIA. It was fully invested for a while. Then it stopped making purchases. The last purchase was over a month ago, on 2/Sep. I've had numerous capital and interest credits since then, but they're just collecting dust rather than being reinvested. My cash balance is now up to about 1% of my account, so my hoped-for 7% return is being diluted by idle funds. What's particularly odd is that I know there have been numerous parts of GEIA-eligible loans traded in the last month because my MLIA has bought and sold quite a variety of them. There's a chance that some of those loans are not appropriate for my GEIA to buy because it already holds 20% of my funds in one or more of those loans -- and I can't check that because the system doesn't tell me what my GEIA is holding -- but that can't be the case for all the parts that have been traded in the past month because there have been more than five different loans traded. chris: Is this behaviour something that you would expect to happen? Or is it an indication that something isn't working as it should be?
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sl75
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Post by sl75 on Oct 12, 2015 12:38:01 GMT
What's particularly odd is that I know there have been numerous parts of GEIA-eligible loans traded in the last month because my MLIA has bought and sold quite a variety of them. There's a chance that some of those loans are not appropriate for my GEIA to buy because it already holds 20% of my funds in one or more of those loans ... There used to be a bug (or series of bugs?) that resulted in some kind of cross-over between targets in the MLIA and GEIA - some parts of the system paid attention to total exposure across all accounts when they "should" have been looking only at the exposure within the specific account. Maybe the GEIA is looking at your MLIA holdings, realising this is above 20% of GEIA funds and not buying any more? After some experimentation months ago, I decided to leave the GEIA alone, instead having higher targets in "green" loans than would otherwise have been the case, making a kind-of virtual GEIA without giving up part of the interest to AC via their PF.
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am
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Post by am on Oct 14, 2015 10:33:27 GMT
4 months on from the above, my XIRR on GEIA has dropped to a rather lacklustre 5.55%. Not really sure exactly why - it's been (mostly) fully invested since Jun....with a few delays on small amounts. I really don't understand what's happening in my GEIA. It was fully invested for a while. Then it stopped making purchases. The last purchase was over a month ago, on 2/Sep. I've had numerous capital and interest credits since then, but they're just collecting dust rather than being reinvested. My cash balance is now up to about 1% of my account, so my hoped-for 7% return is being diluted by idle funds. What's particularly odd is that I know there have been numerous parts of GEIA-eligible loans traded in the last month because my MLIA has bought and sold quite a variety of them. There's a chance that some of those loans are not appropriate for my GEIA to buy because it already holds 20% of my funds in one or more of those loans -- and I can't check that because the system doesn't tell me what my GEIA is holding -- but that can't be the case for all the parts that have been traded in the past month because there have been more than five different loans traded. chris: Is this behaviour something that you would expect to happen? Or is it an indication that something isn't working as it should be? I noted something similar. My MLIA bought several chunks of shrapnel in Cornwall recently, and my GEIA didn't. From the pittance of interest GEIA paid me from Cornwall I infer that Cornwall is nowhere near 20% of my GEIA. GEIA and GBBA have gone completely inactive buying wise recently, and MLIA isn't much better, but is pickup the occasional bit of shrapnel.
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jo
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Post by jo on Nov 3, 2015 9:15:44 GMT
As an aside, today I calculated the standalone XIRR on the GEIA component of an account I operate: Opened account in early Jan 2015, fairly regular trickle deposits, current XIRR 6.4%. 4 months on from the above, my XIRR on GEIA has dropped to a rather lacklustre 5.55%. Not really sure exactly why - it's been (mostly) fully invested since Jun....with a few delays on small amounts. 5 months on and XIRR on GEIA has dropped from 6.4% to 5%. Needs some of the 'Accrued Interest' converted into 'Interest' methinks.
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Bagman
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Post by Bagman on Nov 4, 2015 2:25:15 GMT
I am sure that the GEIA is not working at all as it should..
My last purchase in the account was on Sept 7th , that put me at nearly 100%
But then on 7th Oct it sold some Aberdeen WT , that dropped me below 95%
And no buys since then..
why would it do that after a month of being stable at near 100%
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mikes1531
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Post by mikes1531 on Nov 4, 2015 20:44:46 GMT
I am sure that the GEIA is not working at all as it should..
My last purchase in the account was on Sept 7th , that put me at nearly 100%
But then on 7th Oct it sold some Aberdeen WT , that dropped me below 95%
And no buys since then..
why would it do that after a month of being stable at near 100% I can't explain Bagman's GEIA behaviour, but my GEIA isn't doing a lot better. My last purchase was on 2/Sep. That effectively brought me up to 100% invested, leaving just some micropennies idle. Since then, I've had various interest and capital credits to my GEIA but no purchases, and I'm now about 3% uninvested. The thing that baffles me, and convinces me that there's something wrong with the way the GEIA is operating, is that my MLIA has made over 300 purchases and sales of GEIA-eligible loans in the intervening two months. Why haven't some of those transactions resulted in the topping up of my GEIA to 100% invested? Has the GEIA bought anything for anybody in the past two months? I've raised this issue before, asking whether chris thought what I was observing was expected GEIA behaviour, but I've not seen any response. The only good news I can report is that about 70% of my GEIA's idle funds are in the QAA, so at least they're earning something.
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jonah
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Post by jonah on Nov 4, 2015 21:29:01 GMT
Despite having cash (admittedly not much, mainly interest and principal repayments) pretty much throughout the period, my last buy in Geia was 16th of September. Same date as my last GBBA buy too. I have made some sales from GBBA.
Currently I'm moving parts mainly into MLIA.
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