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Post by chris on Jan 16, 2016 8:25:32 GMT
The internal estimate is for between £3.5m and £5m to draw down in the next three weeks. QAA does have priority on the aftermarket where a target is set, but that's rarely used at the moment. GBBA / GEIA also have a small priority over MLIA for the time being, with that working so that a percentage of the loan units offered for sale are split just between the GBBA / GEIA investors with the rest being split between the GBBA / GEIA and MLIA. That weighting is slowly reducing over time and we're testing an alternative strategy now to aid those accounts get fully invested. Need more loans to draw down though so that this tinkering with the market becomes an irrelevance. How much GBP has the average investor deployed on AC accross all instruments? If that's not a stat we publish I can't really give it out. Competitive information an' all. Why do you ask?
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Post by chris on Jan 16, 2016 8:27:38 GMT
...I've also had it formally agreed that it would be nice to show the expected MLIA split in the last few days before drawdown, with an estimate of the per lender allocation... Wait for it: Lender X: "Hey, you estimated £500 so I made £500 available and everyone else got £600 I'm angry chiz chiz ... transparency ... moan moan." Lender Y: "Hey, you estimated £500 so I made £500 available and only got £400 I'm angry snarl snarl ... conspiracy ... whine whine." No doubt. I'm still in two minds about it but tend to err on the side of transparency unless there are good reasons not to. *Yes I see the irony of saying that after my previous post in this thread.
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SteveT
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Post by SteveT on Jan 16, 2016 10:15:04 GMT
Wait for it: Lender X: "Hey, you estimated £500 so I made £500 available and everyone else got £600 I'm angry chiz chiz ... transparency ... moan moan." Lender Y: "Hey, you estimated £500 so I made £500 available and only got £400 I'm angry snarl snarl ... conspiracy ... whine whine." No doubt. I'm still in two minds about it but tend to err on the side of transparency unless there are good reasons not to. *Yes I see the irony of saying that after my previous post in this thread.Provided it's a figure that's calculated live (based on current targets, as they are set and updated) then it will be accurate at the moment the loan draws down. If updated targets means the figure changes in the few hours leading up to drawdown, well that's situation normal for pretty much any loan auction.
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Post by chris on Jan 16, 2016 10:16:55 GMT
No doubt. I'm still in two minds about it but tend to err on the side of transparency unless there are good reasons not to. *Yes I see the irony of saying that after my previous post in this thread.Provided it's a figure that's calculated live (based on current targets, as they are set and updated) then it will be accurate at the moment the loan draws down. If updated targets means the figure changes in the few hours leading up to drawdown, well that's situation normal for pretty much any loan auction. It takes a couple of seconds to calculate, which is relatively expensive if lots of people are viewing it, so it's likely we'll cache the value for 5 minutes at a time. But otherwise it would be considered live.
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bigfoot12
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Post by bigfoot12 on Jan 16, 2016 11:03:09 GMT
Wait for it: Lender X: "Hey, you estimated £500 so I made £500 available and everyone else got £600 I'm angry chiz chiz ... transparency ... moan moan." Lender Y: "Hey, you estimated £500 so I made £500 available and only got £400 I'm angry snarl snarl ... conspiracy ... whine whine." No doubt. I'm still in two minds about it but tend to err on the side of transparency unless there are good reasons not to. *Yes I see the irony of saying that after my previous post in this thread., have you considered what you'll display when the loan is big enough so that everyone who wants some will get it? Does the calculation take account of how much money is available? If two loans draw on the same day then there might be less money left to invest in the second so there would be a jump in expected allocation after the first is filled.
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agent69
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Post by agent69 on Jan 16, 2016 11:03:22 GMT
...I've also had it formally agreed that it would be nice to show the expected MLIA split in the last few days before drawdown, with an estimate of the per lender allocation... Wait for it: Lender X: "Hey, you estimated £500 so I made £500 available and everyone else got £600 I'm angry chiz chiz ... transparency ... moan moan." Lender Y: "Hey, you estimated £500 so I made £500 available and only got £400 I'm angry snarl snarl ... conspiracy ... whine whine." I think this scenario could be easily dealt with by explaining to Mr X and Ms Y what the term 'estimated' means
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Post by chris on Jan 16, 2016 11:06:00 GMT
No doubt. I'm still in two minds about it but tend to err on the side of transparency unless there are good reasons not to. *Yes I see the irony of saying that after my previous post in this thread. , have you considered what you'll display when the loan is big enough so that everyone who wants some will get it? Does the calculation take account of how much money is available? If two loans draw on the same day then there might be less money left to invest in the second so there would be a jump in expected allocation after the first is filled. The calculation takes into account exactly what is being released and funded demand from MLIA buy orders that have been set. The weakest point is estimating demand from the GBBA / GEIA which is very much a run time decision so can fluctuate wildly depending on if other loans draw down around the same time. Edit: As you say that can also apply to the MLIA but historically this has been less of an issue as lenders tend to set their targets in accordance with their available cash (more often than not).
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agent69
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Post by agent69 on Jan 16, 2016 11:15:16 GMT
Cap seems to have gone up to £6million now £6M cap now reached... this is comfortably above the maximum projected drawdowns within the next few weeks And in all reality miles above what will actually draw down. The size of the cap is way above what would be necessary to provide a temporary home for money to cover the next 2 - 3 loans. I don't see why people would risk putting large amounts of money in for the long term, when you can get similar returns on FSCS protected accounts.
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SteveT
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Post by SteveT on Jan 16, 2016 11:35:58 GMT
Really? Where can you get anything close to 3.75% on £50k in an FSCS protected account, let alone with instant access?
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Post by chris on Jan 16, 2016 12:16:53 GMT
Cap has just been raised to £6.5m.
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agent69
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Post by agent69 on Jan 16, 2016 18:50:12 GMT
Really? Where can you get anything close to 3.75% on £50k in an FSCS protected account, let alone with instant access? I didn't say account, I said account s. If you look on the MSE website in the 'savings and investment' section you will find several threads explaining how to get between 3.5 and 4%. If there's a Mrs Steve it's even easier by also making use of joint accounts.
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SteveT
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Post by SteveT on Jan 16, 2016 19:04:59 GMT
Really? Where can you get anything close to 3.75% on £50k in an FSCS protected account, let alone with instant access? I didn't say account, I said account s. If you look on the MSE website in the 'savings and investment' section you will find several threads explaining how to get between 3.5 and 4%. If there's a Mrs Steve it's even easier by also making use of joint accounts. Fair enough for 4 or 5 figure cash deposits, but promotional-rate current accounts and their ilk aren't much help for those with high 6 / 7 figure portfolios, which I suspect is where much of the money flooding into the QAA comes from.
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ilmoro
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Post by ilmoro on Jan 16, 2016 20:55:33 GMT
I didn't say account, I said account s. If you look on the MSE website in the 'savings and investment' section you will find several threads explaining how to get between 3.5 and 4%. If there's a Mrs Steve it's even easier by also making use of joint accounts. Fair enough for 4 or 5 figure cash deposits, but promotional-rate current accounts and their ilk aren't much help for those with high 6 / 7 figure portfolios, which I suspect is where much of the money flooding into the QAA comes from. As an individual you cant do it just using current accounts, none of which are promotional rates incidently, the most you can get on 50k is ~3.5-3.6%. You would need to add regular saver accounts and move the money over from the lower rate current accounts each month but then that ties your funds up so isnt really the equivalent of the QAA quasi-instant access. Your would also need about 12 current accounts to get close even without the regular savings accounts (Im not factoring in any cashback from spending which would boost totals) and at least 18 DDs (less if you used the regular savers). As a couple you could do fairly easily. Is their FSCS protection on whats in the cash account (ie £25k swept into QAA) is it just £75k for AC client AC as a whole. Cant remember.
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SteveT
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Post by SteveT on Jan 16, 2016 21:12:17 GMT
Fair enough for 4 or 5 figure cash deposits, but promotional-rate current accounts and their ilk aren't much help for those with high 6 / 7 figure portfolios, which I suspect is where much of the money flooding into the QAA comes from. As an individual you cant do it just using current accounts, none of which are promotional rates incidently, the most you can get on 50k is ~3.5-3.6%. You would need to add regular saver accounts and move the money over from the lower rate current accounts each month but then that ties your funds up so isnt really the equivalent of the QAA quasi-instant access. Your would also need about 12 current accounts to get close even without the regular savings accounts (Im not factoring in any cashback from spending which would boost totals) and at least 18 DDs (less if you used the regular savers). As a couple you could do fairly easily. Is their FSCS protection on whats in the cash account (ie £25k swept into QAA) is it just £75k for AC client AC as a whole. Cant remember. I meant "promotional" only in the sense that the high street banks offer and promote such rates purely to attract more affluent customers, in the vain hope of cross-selling them a product they might actually make some money on. I appreciate receiving 4% on £5k from Lloyds each month, but in isolation it's not going to fund very much of my retirement. 
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mikes1531
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Post by mikes1531 on Jan 16, 2016 21:21:48 GMT
I didn't say account, I said account s. If you look on the MSE website in the 'savings and investment' section you will find several threads explaining how to get between 3.5 and 4%. If there's a Mrs Steve it's even easier by also making use of joint accounts. Fair enough for 4 or 5 figure cash deposits, but promotional-rate current accounts and their ilk aren't much help for those with high 6 / 7 figure portfolios, which I suspect is where much of the money flooding into the QAA comes from. : I don't think the money "flooding into the QAA" is coming from "high 6 / 7 figure portfolios" because there's a £50k limit on direct QAA investment and a £25k limit on swept QAA investment.
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