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Post by GSV3MIaC on Jun 20, 2015 21:41:41 GMT
But can't money still be stranded at MR, if it isn't matched that day, and MR for subsequent days is lower? The change may fix the stranding of uplifted YR money, but not stranding in general, unless I misunderstood. What it really needs surely is for MR money which failed to get matched to be repriced along with new MR money each time MR changes (ideally at the front of the queue). That'd fix stranding in general, and could have also worked with uolifted YR money (don't reprice if the new MR is lower than the specified YR). Or maybe that's what they plan (but that's not how I read it).
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Post by westonkevRS on Jun 21, 2015 7:52:17 GMT
Money at MR tracks the MR, and so if it isn't lent on day one it'll go at the next days MR nearer the front of the queue. In theory this could be lower, but as money in MR is usually the predominant money used if it hasn't all been lent then the MR is usually the same. But as old grumpy says, nobody's money will get stranded at a rate higher than they originally chose, which is the current crazy situation. @ westonkevRS.
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Post by GSV3MIaC on Jun 21, 2015 8:15:22 GMT
Thanks, that's what I would hope/expect. So the issue with YR Money was just that it didn't track down, if necessary (but no lower than the set YR)? In that case a/the fix seems obvious
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Post by yorkman on Jun 21, 2015 17:20:56 GMT
Sorry to appear stupid, but can someone translate the last three posts into English? Or at least in a language that newbies can understand. Thanks.
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Post by uncletone on Jun 21, 2015 17:51:16 GMT
The thing is... most people on these boards are very keen on TOTLAs (Two or Three Letter Acronyms. Or five in the case of TOTLA.). You get used to it after a while. If it helps: "MR" is "Market Rate" and "YR" is "YourRate". Start from there and read everything you can find. Other phrases may need further research. If you're embarassed, imagine how I feel....
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sl75
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Post by sl75 on Jun 21, 2015 23:12:55 GMT
Thanks, that's what I would hope/expect. So the issue with YR Money was just that it didn't track down, if necessary (but no lower than the set YR)? In that case a/the fix seems obvious Obvious to everyone except RateSetter it would seem - who are doing the opposite, and removing the opportunity to use a "floor" rate rather than fixing it.
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warn
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Post by warn on Jun 22, 2015 6:37:11 GMT
The only reason I can think of (other than sheer cussedness) for not changing the software to do what the website said it did, is that it would not be as easy as all that -- and would probably involve a change to the database schema. For example, suppose that each lending offer record did not actually contain a "Rate" field, but instead was merely part of a particular collection, and the collection "header" contained the (fixed) rate. The collections are queued in rate order (and the offers in timestamp order within their collection). There would also be one special collection of MR loans, which was slotted into the queue (and if necessary moved to a different place in the queue) as appropriate. That would mean that any individual offer could only be part either of its designated fixed rate collection, or of the MR collection. For the system to work the way the man on the Southwark omnibus might expect, every loan record would instead have to have its own rate field and a floor mechanism built in. There would also be huge performance issues, such as the work needed to calculate exactly where any particular offer sat in the overall queue at a given moment in time. In other words, I fancy that a floor is currently designed out of the system, rather than into it. But that's all guesswork. Maybe it is just cussedness...
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Post by p2plender on Jun 22, 2015 6:46:44 GMT
desired effect? Rate in 5yr crashed down with a shedload available at a measly 6.2%.....
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oldgrumpy
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Post by oldgrumpy on Jun 22, 2015 7:21:49 GMT
desired effect? Rate in 5yr crashed down with a shedload available at a measly 6.2%..... No, it doesn't happen until Wednesday. Today's rate plummet probablity was speculated upon in the other thread.
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Post by westonkevRS on Jun 22, 2015 8:11:11 GMT
desired effect? Rate in 5yr crashed down with a shedload available at a measly 6.2%..... Actually the reverse. The new SONIA style calculation of MR hasn't gone in yet, due 24th. This lower MR wouldn't have happened if it was based on actual average loan rates, rather than a large outlier order at 6.2%... westonkevRS
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Post by mellbreak on Jun 22, 2015 8:31:28 GMT
It would be useful if RS displayed the current "Market rate" on their web page, with an indication of when it was last updated and when it will next be updated.
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oldgrumpy
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Post by oldgrumpy on Jun 22, 2015 8:39:10 GMT
It would be useful if RS displayed the current "Market rate" on their web page, with an indication of when it was last updated and when it will next be updated. Yes. Supposing a new lender comes on this afternoon when 5yr money is being lent out at 6.7% (say), the last match being displayed at that rate, and the new lender thinks, "that's nice; I'll choose "market rate" - not being aware that today's market rate is 6.2%. Does the prevailing market rate display when they opt for that? (I don't think I can replicate it on my settings).
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warn
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Post by warn on Jun 22, 2015 9:49:30 GMT
the new lender thinks, "that's nice; I'll choose "market rate" - not being aware that today's market rate is 6.2% They can't though, can they? You can't choose to lend new money at MR, you have to choose a specific rate. MR is only for reinvestments (and possibly, if you believe the documentation, for direct-debit monthly deposits).
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oldgrumpy
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Post by oldgrumpy on Jun 22, 2015 9:54:26 GMT
the new lender thinks, "that's nice; I'll choose "market rate" - not being aware that today's market rate is 6.2% They can't though, can they? You can't choose to lend new money at MR, you have to choose a specific rate. MR is only for reinvestments (and possibly, if you believe the documentation, for standing-order regular deposits). Oh! That's probably why I couldn't replicate it.
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Post by brokenbiscuits on Jun 24, 2015 17:35:40 GMT
I was expecting todays changes to drop the rate down. Perhaps it has for the borrowers with the best timing?
Personally, about 11am I put on just over £100 at 6.8% and now about 7 hours later its all matched.
will keep adding more funds if rates stay at around 6.5% but will definitely consider my options if rates (as i expect) slip closer to 6% with the new changes.
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