min
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Post by min on Sept 8, 2015 14:30:04 GMT
So does anybody know if auto bid will start buying the best discounted parts available or simply any random part above the threshold set by granny? Is this the death of property parts selling at par? (it's been in the hospice for months) I sold a property loan at par today but it was an A+ at 10%. Won't put any more of those up for now - was just reducing my exposure.
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Post by GSV3MIaC on Sept 8, 2015 14:44:43 GMT
So does anybody know if auto bid will start buying the best discounted parts available or simply any random part above the threshold set by granny? Is this the death of property parts selling at par? (it's been in the hospice for months) Obviously FC does, but they have studiously avoided answering that question - see my comment about lack of transparency in the black box that is autobuy/bid/bodge.
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blender
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Post by blender on Sept 8, 2015 15:18:52 GMT
My guess is that the huge change to Autobid is simply that in selecting parts to be offered to each purchasing Autobidder only the parts at a premium are excluded, whereas before parts at a premium or at a discount were excluding. I would expect that Autobid simply looks at the buyer rate (which before was equal to the interest rate - or almost) and takes no account of the level of discount. That would be the simple fix, and it seems that Autobid has not changed to the Mk II in any other respects.
I have just sold my first 8% property loan part at par after 25 at a discount. Since that same loan is available at 0.6% discount, it seems that my part met an Autobidder's target rate and was not rejected in favour of another with a discount.
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arbster
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Post by arbster on Sept 8, 2015 15:26:38 GMT
Autobid will make no preference towards whether a part is being sold at par, premium or discount. Ooh!
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sl75
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Post by sl75 on Sept 8, 2015 18:36:21 GMT
... Is this the death of property parts selling at par? (it's been in the hospice for months) I suspect the answer to that will largely depend on FC's future approach to cashback incentives. Cashback on new loans, unless used very sparingly, tends to lead to discounts being offered on existing ones (so that people can recycle funds into new cashback-enabled loans). It is possible that, when all other short-term A+ loans are fixed at 6.0%, the 8.0% for short-term property loans will be seen as highly attractive by comparison, and so no cashback will be required. There would then be only a finite supply of existing A+ loans being offered with buyer rates above 8%.
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blender
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Post by blender on Sept 8, 2015 21:38:20 GMT
... Is this the death of property parts selling at par? (it's been in the hospice for months) I suspect the answer to that will largely depend on FC's future approach to cashback incentives. Cashback on new loans, unless used very sparingly, tends to lead to discounts being offered on existing ones (so that people can recycle funds into new cashback-enabled loans). It is possible that, when all other short-term A+ loans are fixed at 6.0%, the 8.0% for short-term property loans will be seen as highly attractive by comparison, and so no cashback will be required. There would then be only a finite supply of existing A+ loans being offered with buyer rates above 8%. This could be true, and part of the master plan. With my returns from FC reduced its look like I will have to seek work as a stand-up chameleon. 
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SteveT
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Post by SteveT on Sept 9, 2015 7:28:42 GMT
My guess is that the huge change to Autobid is simply that in selecting parts to be offered to each purchasing Autobidder only the parts at a premium are excluded, whereas before parts at a premium or at a discount were excluding. I would expect that Autobid simply looks at the buyer rate (which before was equal to the interest rate - or almost) and takes no account of the level of discount. That would be the simple fix, and it seems that Autobid has not changed to the Mk II in any other respects. I have just sold my first 8% property loan part at par after 25 at a discount. Since that same loan is available at 0.6% discount, it seems that my part met an Autobidder's target rate and was not rejected in favour of another with a discount. As stated by blender, it appears to go by the rate set by the buyer. According to an answer to one of my queries, FC said: "Providing a loan part fits an investor's criteria with regards to rate, risk band, % etc., Autobid will make no preference towards whether a part is being sold at par, premium or discount. Essentially Autobid scans an random allocation of loans to see if any parts fit the buyer's criteria, but won't funnell towards certain loans or type of parts over others."I too have sold 4 A+ 8% parts at par overnight (in loans that have plenty of discounted parts available). Whilst well down on recent levels, this shows that Autobid isn't buying the "best available" rate but simply anything that meets the lender's rate threshold. [Correction: one of the A+ 8% loans, 12965 "Short term property loan near Luton", now only has parts listed at par or better, despite originally enjoying 2%CB and being just 3 months old (of 12)]
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blender
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Post by blender on Sept 9, 2015 10:22:09 GMT
FC has yet to flick the second switch: increasing the maximum discount you can apply to 20%. I hope it's sufficiently safe so those like me with fat finger syndrome don't accidently select it. 30 options for a premium and 200 options for a discount; that's some pull down and down and down and down list. I hope the resolution is maintained at least up to 5% discount.
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Post by GSV3MIaC on Sept 9, 2015 13:23:26 GMT
What so we can play 'I can sell mine 0.0001% cheaper than yours, yah boo sux .. oh wait, now I need to move it again' ??
That's nearly as daft as the 100+ steps they had for bidding, before they decided to simplify it a bit .. to one. 8>.
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nick
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Post by nick on Sept 9, 2015 13:27:43 GMT
As stated by blender, it appears to go by the rate set by the buyer. According to an answer to one of my queries, FC said: "Providing a loan part fits an investor's criteria with regards to rate, risk band, % etc., Autobid will make no preference towards whether a part is being sold at par, premium or discount. Essentially Autobid scans an random allocation of loans to see if any parts fit the buyer's criteria, but won't funnell towards certain loans or type of parts over others."I too have sold 4 A+ 8% parts at par overnight (in loans that have plenty of discounted parts available). Whilst well down on recent levels, this shows that Autobid isn't buying the "best available" rate but simply anything that meets the lender's rate threshold. [Correction: one of the A+ 8% loans, 12965 "Short term property loan near Luton", now only has parts listed at par or better, despite originally enjoying 2%CB and being just 3 months old (of 12)] I believe that's always been the case.
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Post by GSV3MIaC on Sept 9, 2015 15:34:38 GMT
It used to be, but some folks had a faint hope Fortran Computing might by now have discovered the SORT facility in some modern programming languages. 8>.
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fasty
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Post by fasty on Sept 9, 2015 15:55:27 GMT
It used to be, but some folks had a faint hope Fortran Computing might by now have discovered the SORT facility in some modern programming languages. 8>. It feels like the Faulty Calculation IT department walked away en-masse shortly after the platform launched, and never got replaced. In particular, There are quite a few bugs on the web site that I really wouldn't expect to see from a reputable financial institution, and they seem to have remained substantially unchanged since I joined years ago.
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oldgrumpy
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Post by oldgrumpy on Sept 9, 2015 16:01:23 GMT
Didn't he *** off to AC (or was it RS he came from?) before the bugs were noticed .... nice chap .... but we still give him a hard time.  |
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grahamg
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Post by grahamg on Sept 9, 2015 16:03:06 GMT
It used to be, but some folks had a faint hope Fortran Computing might by now have discovered the SORT facility in some modern programming languages. 8>. You are old enough to remember FORTRAN ? How about Commercial Fortran ?
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fasty
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Post by fasty on Sept 9, 2015 16:05:10 GMT
Didn't he *** off to AC before the bugs were noticed .... nice chap .... but we still give him a hard time. Really? That would be very believable.
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