AC - QAA a staggering 3.75%

I notice that there is now also no (visible) limit for idle funds.

Wonder if that really means there's no limit, or merely that someone selected too many lines when they went to delete the part that shows overall account totals?

Presumably now AC can grow the QAA exponentially, now that MLIA, GBBA and GEIA investors cannot see just how much of the loans they'd otherwise have been able to invest in have been snaffled by the QAA (£6M of total investment implying around £3M of snaffled loans, give or take a few hundred £k, last time it was visible).

Well my cash balance seems to be displaying in the right place again, must not have refreshed properly last time but now my GBBA which was empty has reaquired some nanopence from somewhere unknown. Looks like Im going to need some form of hoover to finally get the shrapnel from all the nooks & crannies.

Posted in another thread...chris:  I'm glad to see the limit has returned to my Dashboard.  I took its disappearance to mean the limit had been raised by so much that any limit was irrelevant.  Whenever the QAA balance is somewhat close to the limit, I think it's appropriate to show the numbers.  I think AC will be asking for complaints if it says 'QAA is open for investment', and then people depositing funds into their accounts find their money is earning nothing because it is queued since the QAA has reached its limit.  Having the numbers available won't stop this happening, but it will let potential investors know what the situation is. 

With the QAA balance at £7.32M as I write this, it seems likely that we'll be back to queuing shortly unless the coming week's drawdown occurs early in the week or the limit is lifted again.  And until there is a drawdown, I'd guess AC would find it difficult to increase the limit.  And especially so if the QAA is holding much of Loan #208 which is two weeks late in making its first repayment.

chris:  Thanks for your input.

I hope you're right about #208, but AC's public announcements haven't been reassuring.  IIRC, the last thing said was that the borrower had been given until 29/Jan to pay and if they didn't AC would say more on Tuesday.  I expect that if the payment had been received by the 29th AC would have announced that, even if the payment couldn't be posted to lenders' accounts until later.  AFAIK, nothing's been said since, which pessimistic me interprets as bad news.

Just noticed this pearl of wisdom in the status section of the QAA, reminding investors that the current fund of £7.3m covers "all investments in this account across all lenders, not just your own investments".

Ah well, there goes early retirement

lb - if you put an @ before my name then I get notified of your question.  I happened to notice it this time around but I'd hate to miss something in future.

1)  Any defaults are covered first by the provision fund and then assumed by the last lender to withdraw, so liquidity is optimised above all else with the cash portion being held on top of this and typically accounting for something around 50% of all investments (that percentage can fluctuate quite significantly and is not a set target).  We do have the technical capability to freeze withdrawals if there's a major event, which would then allow us to distribute any losses or freezing of funds amongst lenders, but it's not something we've discussed needing or using.  The QAA itself is well diversified and would rarely hold loan units until term as loan units are typically sold to provide liquidity to other investors throughout the first few months of a loan's term, and AC always have the option of putting more funds into the provision fund in order to ensure the account's stability.

On top of that all the loans are still secured so a default does not automatically mean there will be a loss.  The usual risk warnings apply though and it is entirely possible for lenders to lose money via the QAA.

2)  There was some interest buffered and the account wasn't grown in one go.  The actual interest earned will be quite a bit lower due to that rate of growth than it would have been had the account grown in one go.  We also have ~£6-7m of loans due to draw down this week, some of which will be used to help cover next month's interest payment along with other loans throughout February.

I'm not really sure what you mean by that article being misleading.  We have intended investment figures from most of our HNW individuals plus several institutional investors with contracted amounts (which are actually minimums rather than maximums so the true figure is likely to be much higher, origination allowing) which all add up to the figures in the article.  That article was picked up from an older press release of ours and written by the DM.