bg
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Post by bg on Sept 11, 2015 21:41:16 GMT
Now that the supreme technical challenge of making the same money go round and round in ever decreasing circles has been cracked, could AC please focus management attention back onto the core objective of writing some new loans? I'm struggling to remember when the last new loan draw-down took place (sometime in the late 1980s was it?) but I've got all my fingers and toes crossed that there might be another before Xmas Yes there are lots of drawdowns due over the next 30 days and ever increasing numbers after that There were lots of drawdowns due over the last 30 days just none of them ever happened!
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Sept 12, 2015 0:06:31 GMT
Yes there are lots of drawdowns due over the next 30 days and ever increasing numbers after that I would like to believe that but the numbers aren't really stacking up. I see only around £12mm of total loans drawn since Apr 2015. The current underwritten loans only add another £5mm. So six months into FY15/16 you will be at £17mm in drawn loans. In the Seedrs pitch you mentioned a forecast for FY15/16 of about £250mm, leaving AC £230mm short with six months to go. Is the huge undershoot a function of doing a massive amount of whole loans for institutions like VPC or were the forecasts hopelessly optimistic? Do you have new forecasts? As an underwriter I've sort of given up with the idea of increasing my position further and invested elsewhere. There has also been several loans repaid in 2015. I make it just over £9M and that doesn't include monthly repayment of amortising loans. When you also consider that around £3M of interest has been collected this year, it means only £5M of new money has arrived in 8 months. Right now, P2P lenders have an insatiable demand for property bridging loans at 12%. We love them because we understand them. All we need are genuine valuations, upfront interest, first charge LTV's at 70% or less, and a credible default recovery procedure. stuartassetzcapital, I'm surprised AC don't offer more of these.
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Post by chris on Sept 12, 2015 7:12:28 GMT
This QAA seems like a really phenomenal idea!! Although I am curious to know if this has this been approved by Assetz professional advisors? Have they checked that the model works as it says on the tin? We have a full time compliance officer, credit officer, operations director, legal counsel, lender relations director, etc. All have approved the model and agreed that it's legal, complies with FCA regulation, and will work as described.
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SteveT
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Post by SteveT on Sept 12, 2015 7:49:37 GMT
Chris - thanks that is reassuring but where can we find details of who these individuals are and therefore what their credibility is? If you don't trust AC enough to employ capable, professional, qualified people in their key executive roles, I wonder if you should be investing with them?
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Post by chris on Sept 12, 2015 8:48:35 GMT
Chris - thanks that is reassuring but where can we find details of who these individuals are and therefore what their credibility is? Most of those involved are listed on the about us page. You can also pick up the phone and call our lender relations team who will be happy to discuss matters and can then escalate anything they aren't sure of directly. Can I ask what your specific concerns are?
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Post by oldnick on Sept 12, 2015 8:49:09 GMT
Now this has the makings of an interesting debate. How much privacy can we claim, whilst also expecting trust, when performing a paid service for people who don't know us?
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caesium
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Post by caesium on Sept 12, 2015 9:07:09 GMT
chris, still not seeing my idle funds in the QAA despite the fix yesterday. Are my funds progressing up the queue, am I just being too impatient? (has the churn on the QAA settled?)
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bg
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Post by bg on Sept 12, 2015 10:21:16 GMT
What sort of diversification is this account going to have? My concern is that it will basically just mop up the unpopular loans on the platform which is all well and good until there is some sort of problem. My understanding is that you get an amount, say £1m invested into the account (and i'm sure you'll get the £1m maximum), a portion of this is retained in cash (i estimate 30%, but i'm sure you will vary this depending on various factors) and the balance (£700k say) is used to buy whatever units are available on the platform (average rate c10%, so less the cash not invested it gives a return of 7%. 3.75% is paid to investors, some is paid to a PF and AC make some profit). As things stand, most of this 700k will flow into the unpopular trade finance loans. What happens if next week these loans go under? I would say on that basis it kills the platform. Credibility would be shot How would the loss be apportioned? Which investors hold the loan element and the cash element? We don't wish to publish the full strategy as it's a competitive advantage but what we do publish must be true and we want to be as transparent as possible. Bottom line is we most certainly will not be investing in larger/ less popular loans as we want high certainty of sale, secondly we don't want to have to sell any longer term hold loans unless all the cash is expended on liquidity, thirdly we want cash liquidity available to be typically well over half the account size. Give it a try and see and watch the performance that we will publish (along the lines of "X% of all access requests were fulfilled in 1 minute or less in the last 7 days") Stuart, coming back on this, can you explain what the QAA has invested in if not in the larger / less popular loans? When the account went live there was only really the trade finance and Mersey care home loans with units available. These are most certainly the least popular and biggest loans (respectively) on the site. What exactly has the QAA invested in if not these loans?
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Post by chris on Sept 12, 2015 10:43:48 GMT
chris, still not seeing my idle funds in the QAA despite the fix yesterday. Are my funds progressing up the queue, am I just being too impatient? (has the churn on the QAA settled?) Queuing up and the churn has settled. There's around £400k sat in the queue of which somewhere around £250k is eligible (i.e. doesn't take lenders over their personal allowance of £25k). Now the aftermarket churn has settled it'll probably take a bit longer to work through.
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bigfoot12
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Post by bigfoot12 on Sept 12, 2015 11:09:38 GMT
We don't wish to publish the full strategy as it's a competitive advantage but what we do publish must be true and we want to be as transparent as possible. Bottom line is we most certainly will not be investing in larger/ less popular loans as we want high certainty of sale, secondly we don't want to have to sell any longer term hold loans unless all the cash is expended on liquidity, thirdly we want cash liquidity available to be typically well over half the account size. Give it a try and see and watch the performance that we will publish (along the lines of "X% of all access requests were fulfilled in 1 minute or less in the last 7 days") Stuart, coming back on this, can you explain what the QAA has invested in if not in the larger / less popular loans? When the account went live there was only really the trade finance and Mersey care home loans with units available. These are most certainly the least popular and biggest loans (respectively) on the site. What exactly has the QAA invested in if not these loans? I don't think that this is investing in the normal way from the secondary market. Before the QAA was released there were three loans available with a monitoring event 45, 68, and 123. I think that these are currently suspended. Apart from that I see the difference in the amount available on the aftermarket totalling £109k. 51k (165) Care Home 28k (180) Wind Turbine 28k (104-111 but not all in between) Trade Finance total 2k (173 and 169) 1k in each of the lend to let. That doesn't seem like enough. Of course some people have pulled money out of the Green Fund to put it into QAA which will have released wind turbines which the QAA might have purchased. Or perhaps the QAA underwrites small loans or invoice financing, or something else?
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Post by pepperpot on Sept 12, 2015 11:20:50 GMT
chris there seems to be a bit of Spondon stuck, could you give it a nudge? I hope in all the excitement this week you remembered to wash your Hawaiian shirt collection. Coupled with sandals and Ray Bans - Sensational!! (Pants optional) Edit; just remembered, it might be one of the 'not supposed to be for sale yet' ones (beyond original term), in which case it shouldn't be showing at all?
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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 Sept 12, 2015 11:45:38 GMT
chris there seems to be a bit of Spondon stuck, could you give it a nudge? I hope in all the excitement this week you remembered to wash your Hawaiian shirt collection. Coupled with sandals and Ray Bans - Sensational!! (Pants optional) Edit; just remembered, it might be one of the 'not supposed to be for sale yet' ones (beyond original term), in which case it shouldn't be showing at all? No, its not one of the distressed but tradeable. Never had the tick box. So would be a change if being treated like that.
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webwiz
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Post by webwiz on Sept 12, 2015 12:41:23 GMT
Stuart, coming back on this, can you explain what the QAA has invested in if not in the larger / less popular loans? When the account went live there was only really the trade finance and Mersey care home loans with units available. These are most certainly the least popular and biggest loans (respectively) on the site. What exactly has the QAA invested in if not these loans? I don't think that this is investing in the normal way from the secondary market. Before the QAA was released there were three loans available with a monitoring event 45, 68, and 123. I think that these are currently suspended. Apart from that I see the difference in the amount available on the aftermarket totalling £109k. 51k (165) Care Home 28k (180) Wind Turbine 28k (104-111 but not all in between) Trade Finance total 2k (173 and 169) 1k in each of the lend to let. That doesn't seem like enough. Of course some people have pulled money out of the Green Fund to put it into QAA which will have released wind turbines which the QAA might have purchased. Or perhaps the QAA underwrites small loans or invoice financing, or something else? I had supposed, perhaps naiively, that they were holding back a portfolio of loans specifically for the QAA launch.
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bigfoot12
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Post by bigfoot12 on Sept 12, 2015 12:58:50 GMT
I had supposed, perhaps naiively, that they were holding back a portfolio of loans specifically for the QAA launch. It sounds very plausible, but I haven't seen that AC would buy or sell loans as principal, which they would have had to do, and then they'd have to get their money back out of a client account which looks awkward. Don't know.
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webwiz
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Post by webwiz on Sept 12, 2015 14:17:19 GMT
I had supposed, perhaps naiively, that they were holding back a portfolio of loans specifically for the QAA launch. It sounds very plausible, but I haven't seen that AC would buy or sell loans as principal, which they would have had to do, and then they'd have to get their money back out of a client account which looks awkward. Don't know. I don't follow you. I supposed that they had a number of loan requests not drawn down and not disclosed on the site. They could then feed these into QAA as the cash pile grew. They might have to pay 3.75% interest on cash not loaned out for a few days. Wouldn't that work?
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