mikes1531
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Post by mikes1531 on Sept 13, 2015 17:01:46 GMT
I'm sure that when the account has been running for a while AC will be able to select better limits. ... If everyone is a lender then when a large loan draws down there will be a significant demand on the QAA; surprisingly often two or more draw down on the same day. The above could be taken as a good reason for keeping a low overall limit. If there's a queue waiting to get into the QAA, then any money taken out in order to buy freshly drawndown parts would be replaced immediately by the queued money -- and there'd be no need for the QAA to liquidate any of its holdings. (This presumes that the QAA investment algorithm is smart enough to know that money being withdrawn is going to be replaced immediately. I'd hate to think it might look at each transaction individually, liquidating holdings to cover withdrawals and then immediately acquiring holdings to cover the new 'replacement' money coming into the QAA.)
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Post by chris on Sept 13, 2015 17:20:42 GMT
I'm sure that when the account has been running for a while AC will be able to select better limits. ... If everyone is a lender then when a large loan draws down there will be a significant demand on the QAA; surprisingly often two or more draw down on the same day. The above could be taken as a good reason for keeping a low overall limit. If there's a queue waiting to get into the QAA, then any money taken out in order to buy freshly drawndown parts would be replaced immediately by the queued money -- and there'd be no need for the QAA to liquidate any of its holdings. (This presumes that the QAA investment algorithm is smart enough to know that money being withdrawn is going to be replaced immediately. I'd hate to think it might look at each transaction individually, liquidating holdings to cover withdrawals and then immediately acquiring holdings to cover the new 'replacement' money coming into the QAA.) There's several complex strategies used to ensure liquidity is maintained. The most taxing time will be at the point a loan is drawn down and lots of lenders invest otherwise idle funds held by the QAA in that loan. Here we do things like reorder the trades so that anyone selling a loan unit whose idle funds are QAA invested are processed first, thus recycling their sale straight back into the QAA. There are several other tricks and tactics used to mitigate the risks but we're deep into proprietary information the other platforms would love to have  But you have given me an idea for a new warning on the admin site showing estimated QAA liquidity vs estimated funds that will need to be freed to execute sales upon loan draw down.
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mikes1531
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Post by mikes1531 on Sept 13, 2015 17:32:44 GMT
The most taxing time will be at the point a loan is drawn down and lots of lenders invest otherwise idle funds held by the QAA in that loan. Here we do things like reorder the trades so that anyone selling a loan unit whose idle funds are QAA invested are processed first, thus recycling their sale straight back into the QAA. This sounds an awful lot like queue jumping -- but perhaps it's not done if there's a backlog of money trying to get into the QAA.
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duck
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Post by duck on Sept 13, 2015 17:40:10 GMT
First time I have seen the level below 1 million, currently £999,998.
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Post by chris on Sept 13, 2015 17:42:14 GMT
The most taxing time will be at the point a loan is drawn down and lots of lenders invest otherwise idle funds held by the QAA in that loan. Here we do things like reorder the trades so that anyone selling a loan unit whose idle funds are QAA invested are processed first, thus recycling their sale straight back into the QAA. This sounds an awful lot like queue jumping -- but perhaps it's not done if there's a backlog of money trying to get into the QAA. Sorry, perhaps didn't explain it very well. Those trades are processed first but are added back to the queue. It's instantaneous only if the queue is empty, otherwise the first investment(s) are taken from the queue to make up the total.
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Post by Come_on_Grandad on Sept 13, 2015 17:42:45 GMT
chris I notice that when my available MLIA cash (queued for sweeping into the QAA) is sufficient to make a purchase, then the purchase is indeed made from that cash. But when my queuing cash (currently 20 pence) is insufficient, the the whole purchase is made from QAA swept cash and my 20p remains queued. What will happen when the next loan draws down if my circumstances are a buy order for £500 and: a) QAA £500 and queued for sweeping £499 b) QAA £250 and queued for sweeping £250
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Post by chris on Sept 13, 2015 17:44:48 GMT
First time I have seen the level below 1 million, currently £999,998. That'll be a bug. It's actually been a huge pain working out precisely when to trigger accepting funds from the queue within the code base as there's a lot of potential for infinite recursion if you get it wrong. Presumably I've missed a spot and someone's managed to find a way to pull some funds from the QAA without it triggering a topping up exercise. I'll track it down when I get back from holiday.
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Post by chris on Sept 13, 2015 17:45:56 GMT
chris I notice that when my available MLIA cash (queued for sweeping into the QAA) is sufficient to make a purchase, then the purchase is indeed made from that cash. But when my queuing cash (currently 20 pence) is insufficient, the the whole purchase is made from QAA swept cash and my 20p remains queued. What will happen when the next loan draws down if my circumstances are a buy order for £500 and: a) QAA £500 and queued for sweeping £499 b) QAA £250 and queued for sweeping £250 That'll need a tweak as that's not the intension. It should only pull those funds required from the QAA, preferring to use idle cash where it can. As that's a fairly important one I'll try and fix it this evening.
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Post by chris on Sept 13, 2015 17:52:23 GMT
chris I notice that when my available MLIA cash (queued for sweeping into the QAA) is sufficient to make a purchase, then the purchase is indeed made from that cash. But when my queuing cash (currently 20 pence) is insufficient, the the whole purchase is made from QAA swept cash and my 20p remains queued. What will happen when the next loan draws down if my circumstances are a buy order for £500 and: a) QAA £500 and queued for sweeping £499 b) QAA £250 and queued for sweeping £250 That'll need a tweak as that's not the intension. It should only pull those funds required from the QAA, preferring to use idle cash where it can. As that's a fairly important one I'll try and fix it this evening. Was a simple fix in the end, revised code is now live.
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bg
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Post by bg on Sept 13, 2015 18:12:34 GMT
chris how about direct investment in the QAA not being included in the 'Total Investment' on the Dashboard. Is that a known bug on the to do list?
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Post by chris on Sept 13, 2015 18:13:31 GMT
chris how about direct investment in the QAA not being included in the 'Total Investment' on the Dashboard. Is that a known bug on the to do list? Yes. One for the minions.
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webwiz
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Post by webwiz on Sept 13, 2015 18:43:55 GMT
First time I have seen the level below 1 million, currently £999,998. Gave me hope for a brief moment!
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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 13, 2015 18:45:01 GMT
First time I have seen the level below 1 million, currently £999,998. That'll be a bug. It's actually been a huge pain working out precisely when to trigger accepting funds from the queue within the code base as there's a lot of potential for infinite recursion if you get it wrong. Presumably I've missed a spot and someone's managed to find a way to pull some funds from the QAA without it triggering a topping up exercise. I'll track it down when I get back from holiday. . At 18:34 I sold £20 of loan #114, it sold as 12x £1.66. The QAA is £1.66 short of £1M. I suspect these events happened a the same time.
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mikeb
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Post by mikeb on Sept 13, 2015 19:03:09 GMT
Back to the QAA mechanics, how about setting individual limits at say 100% of the net funds lent (excluding via QAA) in the last 3 months, with a max of £25K? This should then benefit those who are actively adding money to the platform to invest in loans. ... and penalise those who haven't lent much over the past 3 months due to the lack of new stuff coming through!
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mikes1531
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Post by mikes1531 on Sept 13, 2015 20:39:28 GMT
Back to the QAA mechanics, how about setting individual limits at say 100% of the net funds lent (excluding via QAA) in the last 3 months, with a max of £25K? This should then benefit those who are actively adding money to the platform to invest in loans. ... and penalise those who haven't lent much over the past 3 months due to the lack of new stuff coming through! I'd prefer a limit related to the level of buying instructions an investor has -- encouraging investors to keep money available to cover those, which should be the principal raison d'être for the QAA -- though I'd worry about investors gaming the system. If AC find that the QAA is attracting a lot of 'static' money, and they're happy to raise the cap on the account to accommodate that and use that money to sop up loan parts that haven't been taken up by their other investors, then that's fine too. But they'd need to increase their deal flow for that to work, as most of the loans with parts available right now aren't suitable for investment by the QAA because of their very limited liquidity.
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