oldgrumpy
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Post by oldgrumpy on Jan 4, 2016 19:02:52 GMT
I was asked when I joined AC what kind of figure I would be investing. I eventually got there, but have struggled due to AC's unfulfilled loan flow of 2015. Future cutting back of the MLIA availability to further AC's ends is well within their rights, but merely means I cannot put more money in, so it goes elsewhere. OK. I'm small fry.
(and don't go prattling on about it's not all about me.... AC either wants my cash or it doesn't)
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Post by chris on Jan 4, 2016 19:10:30 GMT
I was asked when I joined AC what kind of figure I would be investing. I eventually got there, but have struggled due to AC's unfulfilled loan flow of 2015. Future cutting back of the MLIA availability to further AC's ends is well within their rights, but merely means I cannot put more money in, so it goes elsewhere. OK. I'm small fry. (and don't go prattling on about it's not all about me.... AC either wants my cash or it doesn't) QAA is being leveraged to create more opportunity for all, including the MLIA. Our growth in origination from October should start being felt this month even if it's Feb / Mar before it really starts to feed through. December's origination matched October and November if you account for the short month so our new strategy is still working nicely. All down to conversion rates whilst continuing with this uptick in origination, which have the board's full attention.
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ablender
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Post by ablender on Jan 4, 2016 19:16:10 GMT
Is there really someone with so many millions earning 3.5%? Is this what is meant by big pockets? I wonder - I thought they would be looking for more.
Edit: Now I understand it better. The £5m limit is not per lender but a cumulative limit for everyone. Considering that there are already £4,490,320 invested (not all mine unfortunately), an increase to £5m makes more sense.
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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 Jan 4, 2016 19:27:37 GMT
I was asked when I joined AC what kind of figure I would be investing. I eventually got there, but have struggled due to AC's unfulfilled loan flow of 2015. Future cutting back of the MLIA availability to further AC's ends is well within their rights, but merely means I cannot put more money in, so it goes elsewhere. OK. I'm small fry. (and don't go prattling on about it's not all about me.... AC either wants my cash or it doesn't) And, according to Stuarts latest post on Seedrs, the institutional money hasnt actually come through in any big way yet. Thats £525mil
Oh and apparently they estimate there's about 200million of retail lenders cash as well AC youre gonna need a bigger QAA  
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ben
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Post by ben on Jan 4, 2016 19:51:52 GMT
at 50,000 max thats a lot of lenders with spare cash just sat around
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j
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Post by j on Jan 4, 2016 20:52:04 GMT
Am I the only one wondering why the QAA needs to be so big? I thought it was suppose to be somewhere to park spare cash until the next loan arrived. The bigger it gets the more I wonder what they are doing with our cash. Putting it on SavingStream at 12% ? The fiends 
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tonyr
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Post by tonyr on Jan 4, 2016 21:10:39 GMT
at 50,000 max thats a lot of lenders with spare cash just sat around Eh? At £50k max a £5m fund is 100 lenders - my earlier google suggested there are 50m adults in the UK. 100 is not a lot out of 50m, it's two in a million. As Chris as alluded to, what's limiting the growth of the QAA is mostly the desire not to starve the other investors in AC. You can't just bump the QAA up by 10x or even 2x, it would certainly become full (by word of mouth or a teansy weansy bit of marketting) almost straight away but it really has to deliver 3.75% so it can't hold everything in cash and needs loans to invest in. It doesn't need to be fully invested by far, so liquidity is not really a concern. The 3.75% comes from being high enough to beat anything else on the market and being low enough to so that the remainder of the returns build up the provision fund. Now the hungry QAA just needs feeding.
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Post by chris on Jan 6, 2016 14:18:22 GMT
QAA cap has been raised to £5.5m
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ben
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Post by ben on Jan 6, 2016 15:27:09 GMT
why does it keep raising ? what size do you expect it to go to in total?
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littleoldlady
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Post by littleoldlady on Jan 7, 2016 9:22:04 GMT
I pulled all my cash out of AC last year because at that time ISTM that money in the QAA was buying loans on which I had zero information and also if one of those loans went bad AC could or would not say which investors would take the loss. I have not trawled through every comment on this forum but can somebody tell me if this is still the case or is it now safe for me to return?
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ben
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Post by ben on Jan 7, 2016 9:35:00 GMT
I think the way it set up it does not matter who has the bad loan if the provision fund was not enough to cover it then everyone would take an equal hit, so I do not understand why in the other accounts it tells you what your account has got as that is just leaving them open to people saying there GBBA account never had any of that loan so why should they lose out because of it
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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 Jan 7, 2016 9:43:06 GMT
I pulled all my cash out of AC last year because at that time ISTM that money in the QAA was buying loans on which I had zero information and also if one of those loans went bad AC could or would not say which investors would take the loss. I have not trawled through every comment on this forum but can somebody tell me if this is still the case or is it now safe for me to return? Still the case, though Chris has said might be some change shortly here
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ilmoro
Member of DD Central
'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 Jan 7, 2016 10:02:25 GMT
I think the way it set up it does not matter who has the bad loan if the provision fund was not enough to cover it then everyone would take an equal hit, so I do not understand why in the other accounts it tells you what your account has got as that is just leaving them open to people saying there GBBA account never had any of that loan so why should they lose out because of it Not technically true AIUI as there is a differnce between the two accounts. The GEIA/GBBA have to be invested in loans in order for you to receive interest and these loans have to be identified for compliance reasons. The QAA pays interest on cash & loans. It holds a substantial part of funds in cash alongside investments in loans, so your money could be cash, or loans, or both and not sure it is proportional to total investment (or even delinated who has what) Therefore in an extreme case where loans fail & PF is exhausted it has not been made clear if last out would end up holding the baby.
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littleoldlady
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Post by littleoldlady on Jan 7, 2016 10:18:35 GMT
I think the way it set up it does not matter who has the bad loan if the provision fund was not enough to cover it then everyone would take an equal hit, Who is everyone? Money is churning through the QAA rapidly and a loan failing is not an instant event. In the interval between the first sign of trouble and AC declaring a default the lenders will have changed considerably. What is equal? Amount or proportion? Does not look like I will be returning at present.
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ablender
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Post by ablender on Jan 7, 2016 13:34:01 GMT
I think the way it set up it does not matter who has the bad loan if the provision fund was not enough to cover it then everyone would take an equal hit, so I do not understand why in the other accounts it tells you what your account has got as that is just leaving them open to people saying there GBBA account never had any of that loan so why should they lose out because of it I think it is part of how these accounts work that losses are shared. So if someone invests in these accounts they are accepting the way they work. Thus they cannot use the argument "[they] never had any of that [defaulting/loss] loan so why should they lose out because of [that loan]" as they have already accepted this.
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