jonah
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Post by jonah on Dec 12, 2015 9:50:57 GMT
Assuming that 199 does go live today, added to the above that would give over a million to get into the QAA. It could be that it doesn't fill all of that until tomorrow! #199 did go live Friday, but the amount in the QAA doesn't seem to have dropped at all. In fact, at £3.49M right now, it's up nearly £200k in the past 15 hours. Very little of the #199 loan seems to have been funded by lenders' swept QAA money. You are correct. The infamous £40 loan debacle. Apparently another £250k will be released for MLIA buyers soon. Some of which will be bought be cash in QAA. Of more interest, at least to me, is that the QAA holds at least a quarter of this loan. Around 7% of the QAA total is in one loan. I know it has to get its interest and provision fund from somewhere but that level seems higher than I would have guessed.
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Post by chris on Dec 12, 2015 10:15:41 GMT
Could AC give us an indication at what max limit they have in mind for the QAA. I appreciate that AC has to fund the QAA to be able to pay the base rate but think perhaps a slower expansion of the QAA would not have disadvantaged lenders to the extent seen in the past 2 months since QAA went live. My income is seriously down each month as repaid loans are unable to be reinvested at previous rates. Whilst I think the QAA is great for sweeping up idle funds or as a lesser risk fund I personally believe the QAA should be used for the short term between old loans maturing/being repaid and (hopefully) new loans being launched. To my way of thinking the result has been that whereas previously I was receiving 100% of my investment instructions in loans going live I am now only getting 20-35% of requests as loans appear to being channeled into QAA rather than to individual investors - the 2% received in the Galash***** loan today makes me think it is not worth putting up requests for any new loans until business as normal is resumed. We aim to raise the cap to £4m in the next couple of weeks and again in January but plans beyond then are still being finalised. QAA is necessarily holding some loan units which could otherwise have been released to other channels of investing and I accept that this increases the short term strain in the constricted market we have had these last few months. However the QAA is one of the tools we have for changing market conditions to allow us to originate more loans which will start filtering through in Q1 next year, so any short term pain will be outweighed by the long term improvements to deal flow and the resulting opportunities that will bring to lenders.
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SteveT
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Post by SteveT on Dec 12, 2015 10:34:02 GMT
I find it quite remarkable that AC arbitrarily determine how much of a new loan to allocate to which investor account to suit their own ends, and especially eye-opening that a large part of an attractive 11% loan can be passed to an account paying just 3.75%, leaving those in the MLIA (and bearing full risk of default) with next to nothing.
We're told how big the QAA is but are there any statistics that show the relative sizes of the MLIA, GBBA and GEIA to the QAA (ideally also how much uninvested cash is sitting in each)? I've tried to look in the obvious places but cannot find any figures.
Surely the oft-spouted mantra of "Fairer. Growth. Together" should imply that allocation of new loans across different investor accounts should take account of relative investor demand in each? Currently, as an MLIA-only investor, I'm struggling to work out which (if any) of "Fairer", "Growth" and "Together" is applicable to the MLIA?
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bigfoot12
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Post by bigfoot12 on Dec 12, 2015 12:31:31 GMT
I find it quite remarkable that AC arbitrarily determine how much of a new loan to allocate to which investor account to suit their own ends, and especially eye-opening that a large part of an attractive 11% loan can be passed to an account paying just 3.75%, leaving those in the MLIA (and bearing full risk of default) with next to nothing. We're told how big the QAA is but are there any statistics that show the relative sizes of the MLIA, GBBA and GEIA to the QAA (ideally also how much uninvested cash is sitting in each)? I've tried to look in the obvious places but cannot find any figures. Surely the oft-spouted mantra of "Fairer. Growth. Together" should imply that allocation of new loans across different investor accounts should take account of relative investor demand in each? Currently, as an MLIA-only investor, I'm struggling to work out which (if any) of "Fairer", "Growth" and "Together" is applicable to the MLIA? I don't find it remarkable at all. They are free to do what they want. There aren't enough loans so somebody is going to be unhappy. Maybe they know that there is going to be so much arriving on the platform in January that they want to make sure they don't lose any cash from the platform over Christmas. chris I would like statistics on the provision fund. I think that these are quite important. Without that information I will assume that the provision fund is a promise from AC. I would like to know, the size of the provision fund, the size of holdings in accounts covered by it (so excluding cash) and the largest holdings (summed across all accounts). I would have thought the largest 5 holdings would be an appropriate number.
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Post by chris on Dec 12, 2015 12:49:14 GMT
I find it quite remarkable that AC arbitrarily determine how much of a new loan to allocate to which investor account to suit their own ends, and especially eye-opening that a large part of an attractive 11% loan can be passed to an account paying just 3.75%, leaving those in the MLIA (and bearing full risk of default) with next to nothing. We're told how big the QAA is but are there any statistics that show the relative sizes of the MLIA, GBBA and GEIA to the QAA (ideally also how much uninvested cash is sitting in each)? I've tried to look in the obvious places but cannot find any figures. Surely the oft-spouted mantra of "Fairer. Growth. Together" should imply that allocation of new loans across different investor accounts should take account of relative investor demand in each? Currently, as an MLIA-only investor, I'm struggling to work out which (if any) of "Fairer", "Growth" and "Together" is applicable to the MLIA? I don't find it remarkable at all. They are free to do what they want. There aren't enough loans so somebody is going to be unhappy. Maybe they know that there is going to be so much arriving on the platform in January that they want to make sure they don't lose any cash from the platform over Christmas. chris I would like statistics on the provision fund. I think that these are quite important. Without that information I will assume that the provision fund is a promise from AC. I would like to know, the size of the provision fund, the size of holdings in accounts covered by it (so excluding cash) and the largest holdings (summed across all accounts). I would have thought the largest 5 holdings would be an appropriate number. Could you direct that one at the lender support team please for accurate figures? I believe the QAA and GBBA are around 2% currently due to the account growth, so they'll either be topped up or will fill up over time. GEIA is around 3% currently. The target for all is 5% but it lags growth at the current pot size and rate of growth.
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bigfoot12
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Post by bigfoot12 on Dec 12, 2015 17:08:42 GMT
chris I would like statistics on the provision fund. I think that these are quite important. Without that information I will assume that the provision fund is a promise from AC. I would like to know, the size of the provision fund, the size of holdings in accounts covered by it (so excluding cash) and the largest holdings (summed across all accounts). I would have thought the largest 5 holdings would be an appropriate number. Could you direct that one at the lender support team please for accurate figures? I believe the QAA and GBBA are around 2% currently due to the account growth, so they'll either be topped up or will fill up over time. GEIA is around 3% currently. The target for all is 5% but it lags growth at the current pot size and rate of growth. Thanks for the quick reply. I think it would be good to have it on your website with at least a monthly number if not daily.
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Post by chris on Dec 12, 2015 17:56:48 GMT
Could you direct that one at the lender support team please for accurate figures? I believe the QAA and GBBA are around 2% currently due to the account growth, so they'll either be topped up or will fill up over time. GEIA is around 3% currently. The target for all is 5% but it lags growth at the current pot size and rate of growth. Thanks for the quick reply. I think it would be good to have it on your website with at least a monthly number if not daily. The figures are on the website, albeit tucked away somewhere. Think they're on the individual product pages somewhere. They could be more prominent.
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jonah
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Post by jonah on Dec 12, 2015 18:13:19 GMT
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Post by chris on Dec 12, 2015 18:17:52 GMT
Those are live figures. GBBA was well over 2% a week or so ago but we've had some loans draw and new funds deployed. It'll steadily rise as repayments come in in between each draw down which drops it down a bit. QAA is probably the most volatile for that reason.
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jonah
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Post by jonah on Dec 12, 2015 20:25:07 GMT
Those are live figures. GBBA was well over 2% a week or so ago but we've had some loans draw and new funds deployed. It'll steadily rise as repayments come in in between each draw down which drops it down a bit. QAA is probably the most volatile for that reason. Live as in a real time snapshot generated on the fly or a daily point in time?
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Post by chris on Dec 12, 2015 20:27:27 GMT
Those are live figures. GBBA was well over 2% a week or so ago but we've had some loans draw and new funds deployed. It'll steadily rise as repayments come in in between each draw down which drops it down a bit. QAA is probably the most volatile for that reason. Live as in a real time snapshot generated on the fly or a daily point in time? If memory serves they're live live. Every time any investment happens or changes they'll update.
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mikes1531
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Post by mikes1531 on Dec 12, 2015 20:59:38 GMT
#199 did go live Friday, but the amount in the QAA doesn't seem to have dropped at all. In fact, at £3.49M right now, it's up nearly £200k in the past 15 hours. Very little of the #199 loan seems to have been funded by lenders' swept QAA money. You are correct. The infamous £40 loan debacle. Apparently another £250k will be released for MLIA buyers soon. Some of which will be bought be cash in QAA. The allocations resulting from the release of the £250k today seem to suggest that only about £10k of #199 was allocated to MLIAs when the loan was first released. I can understand why AC need to skew distributions a bit when supply is scarce in order to keep the GEIA/GBBA/QAA operating as expected, and I had no big problem when we were told that 75% of the last WT loan (#218) was headed for GEIAs, but never in my wildest nightmares would I have expected the distribution to be as incredibly lopsided as it was for#199. I'm encouraged that AC have responded to the resulting furore by releasing some more of #199 promptly, and I do hope lessons have been learnt. A large enough chunk of today's £250k purchases came out of the QAA that all funds queued for the QAA were able to get into it. At the moment, there is £27k of spare QAA capacity. Of more interest, at least to me, is that the QAA holds at least a quarter of this loan. Around 7% of the QAA total is in one loan. I know it has to get its interest and provision fund from somewhere but that level seems higher than I would have guessed. My guess is that the plan had been to put that huge amount of #199 into the QAA for a relatively short period and then release it once it had done its job of generating some interest and PF contributions for the QAA. AC's mistake in this case was that the bias in the distribution was so huge that it was obvious to us that something funny had happened. Consider what would have happened if AC had released £125k to the MLIAs and put the rest into the QAA... The maximum MLIA allocation probably would have been over £500 -- it appears to have been £1426.88 when the £250k was released today. MLIA investors would have been very happy with a £500+ maximum allocation after the previous day's £54.56 maximum allocation for #209. And AC could have kept at least £125k of #199 in the QAA as long as they liked without anyone complaining -- or even being aware of what had happened.
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jonah
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Post by jonah on Dec 12, 2015 21:04:10 GMT
Live as in a real time snapshot generated on the fly or a daily point in time? If memory serves they're live live. Every time any investment happens or changes they'll update. Excellent stuff. Cheers.
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Post by chielamangus on Dec 14, 2015 8:48:51 GMT
MLIA investors would have been very happy with a £500+ maximum allocation after the previous day's £54.56 maximum allocation for #209. Speak for yourself!
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mikes1531
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Post by mikes1531 on Dec 14, 2015 14:54:43 GMT
MLIA investors would have been very happy with a £500+ maximum allocation after the previous day's £54.56 maximum allocation for #209. Speak for yourself! Point taken. I should have started my sentence quoted above with "Most".
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