AC - QAA a staggering 3.75%

I've not done a "direct" investment in QAA (there doesn't seem much point!), so mine just shows an amount "Lent from idle funds", with no indication anywhere I can see how much of that is REALLY invested, and how much is held as cash.

I know what "Backdoor Bob" did, if that helps.

No, not that...

He used to use VNC to remotely visit people's machines and remotely administer (tinker) with them. Sometimes freaking them out, as they were using the machine at the time

"Just call me Backdoor Bob" he said. Despite the fact his name was Tony

sl75:  AIUI, the problem AC were trying to solve with the QAA was that lenders weren't leaving much idle funds in their accounts so that they could increase their holdings to their targets when parts became available -- either because other lenders selling or because underwriters releasing parts immediately after drawdown.  I expect many were doing that because idle funds reduce lenders returns and most 'active' investors try very hard to avoid that.  Since the QAA allows lenders to earn 3.75% on what would have been idle funds, AC might have expected more funds to be made available, which would help uptake of newly drawndown loans and Aftermarket liquidity.  As an extra bonus, AC could use a goodly proportion of the additional funds provided to sop up parts of their loans, and contribute to their bottom line the difference between the interest rate on the loans in the QAA and the amount paid out on QAA holdings plus any contributions to the Protection Fund.

The problem I -- and others -- are trying to fix with limit suggestions, is that the 3.75% QAA rate is sufficiently attractive to expect that some people will use it to park money they otherwise might have put in banks and building societies.  With the current overall QAA limit of £1M, all it would take is for 40 people to 'park' £25k each in the QAA for the new account to stop functioning as designed for active AC investors since their idle funds would become truly idle again, always queued for the QAA but never getting in.

If AC were to be able to increase the overall QAA limit to the point where it isn't actually limiting then, yes, the problem would go away.  And while a modest increase might achieve that right now, once the word spreads about the QAA and it starts showing up in the Best Buy tables of comparison websites I'd expect the punters to come flooding in and swamp the original purpose of the QAA.  IMHO, AC need to be planning now what they're going to do to deal with the deluge.

Noooo - surely the problem that AC were trying to solve with the QAA is that AC have near zero marketing exposure.   Several years ago I was seeing FC adverts on tube trains - the only AC advert I've seen was cookie based (so great, they know I already invest - useless).   AC need exposure.   Personally I'd have made it £10k to begin with as 100 people is a better sample size than 40.   Either way, the idea is great - instant access (my account said 0 seconds!).   As you say at the end, AC need to learn in the next few weeks how the account works, increase the £1m to £10m and then to £100m and then they'll get newspaper coverage and all aspects of their business will take off.   The 3.75% will lead into people committing for longer and getting 7% which will lead to general education where you can get 10% - magic.

I have to say that as a top seedrs investor I was worried for the last few months, but if AC can execute on rapidly growing the QAA pot (as they should given the data they have and some quant skills) then they should be playing with the big boys.   But FC are now switching to fixed interest auctions so they've got to execute as the QAA is a great idea but now it's live the cat is out of the bag.

Perhaps it's just me and the websites I visit, but I seem to have seen a lot of AC ads lately.  But OTOH they all seem to be aimed at SMEs needing to borrow money.  There's nothing wrong with that, as AC need to increase their deal flow, but those ads have nothing to do with the QAA.

You're right. There are now loans on the aftermarket from only two borrowers, the MTFP and the Expat L2L, and it appears we're about to see one of the tranches of the MTFP sell out for the first time: there's only a sliver of tranche 2 left.


AC can't market the QAA to lenders as there's nothing to market. I've had money queued since the day after launch that hasn't entered. No one in their right mind would spend money marketing a product they don't have: all they would achieve is to alienate investors who might come on board later when product is available.