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Post by chris on Sept 9, 2015 5:29:23 GMT
In the database there's always a deterministic order, so there is always an order to the queue. So, at risk of repeating the earlier question, in cases such as this where the order cannot be determined by the time (because a large number of users received payment at exactly the same time and are simultaneously adding funds to the QAA), what additional criteria does the database use to deterministically decide that one user gets their funds re-invested in the QAA "immediately", but another is determined to be at the back of the queue and must wait until everyone else has had their turn? Does the database prioritise the earliest sign-up date? Alphabetical by username? Amount of funds being queued? The order in which the users acquired their loan units? AC staff users over others? Something else? It'll depend. On an aftermarket trade, for example, there will be an order in which they're processed. QAA funding sales are processed first to maintain liquidity and essentially random thereafter. Deposits would be in the order they hit the bank account as reported by the bank. Loan repayments would be whatever order the loan units are stored on the hard drive, which is likely to be a function of how long the loan unit has been held but there's a random element. Lender actions will always hit the database one after the other so that order will determine who goes first.
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Post by chris on Sept 9, 2015 6:27:04 GMT
I hesitate to ask, but you might as well be ready with an answer. Will QAA suffer the two issues that the other two highly automated accounts suffer from which is: a) emails asking for decisions on loans we didn't choose to buy, and b) fast repeated buying and selling of small amounts for no apparent reason. No it shouldn't. The investment mechanism is slightly different which prevents both situations. With (b) I'm aiming to improve that with this release and have a further refinement planned which should eliminate it which I'm aiming to release this week although it'll be tight.
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Post by reeknralf on Sept 9, 2015 7:25:08 GMT
As things stand it is very slow to get into the popular (liquid) loans. This account is going to bring in a pile of money chasing these exact loans, making it even slower. So bad news if you're trying to build a portfolio at Assetz.
If you've already built your portfolio, this account's of no interest because it's just putting more money into loans you've already got your fill of.
I'd happily double my investment at Assetz if the loans were there to invest in, instead each new product is aimed at pulling in yet more lenders.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Sept 9, 2015 8:02:29 GMT
chris. 10 mins ago I reduced targets on 3 loans and none of them sold, There's no units available so I expected an instant sell. Is this because of the QAA upgrade ?
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Post by geoffrey on Sept 9, 2015 8:06:11 GMT
It's no bad thing to pull in more lenders (though I query whether 3.75% is really the bait that will pull in lots of new lending money, given rates available elsewhere). AC will need more lenders to grow and to be able to offer loans on better terms to quality borrowers. However, I think this facility is more likely to serve those who are currently finding it difficult to find a wide-enough range of loans to invest in, and want to park their money somewhere half-decent while waiting. Unfortunately, it's true that it's a double-edged sword in that the existence of this fund will only lengthen the wait, and make it harder to get in on popular loans via another fund or via direct investing. The solution to this is obvious: work on the loan pipe!
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Post by geoffrey on Sept 9, 2015 8:08:39 GMT
10 mins ago I reduced targets on 3 loans and none of them sold, There's no units available so I expected an instant sell. Is this because of the QAA upgrade ? And I just invested some more money in GBBA and GEIA, and neither sums are shifting. No doubt things are paused during the upgrade, though there continued to be crazy buying and selling of the same loan parts yesterday and the day before in both accounts. I hope the upgrade fixes this too, as Chris has suggested it will.
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jonah
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Post by jonah on Sept 9, 2015 8:16:58 GMT
I think trading is paused as no activity on any accounts since around 9am yesterday (apart from payments of interest/capital).
i agree, QAA is not a fix all, but if you have some cash idle waiting for loan X to draw down for example, it it better to get some interest rather than none.
that said, getting more new loans through the the door is key!
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Post by chris on Sept 9, 2015 8:25:14 GMT
As things stand it is very slow to get into the popular (liquid) loans. This account is going to bring in a pile of money chasing these exact loans, making it even slower. So bad news if you're trying to build a portfolio at Assetz. If you've already built your portfolio, this account's of no interest because it's just putting more money into loans you've already got your fill of. The aim of the account is to improve liquidity for lenders not to harm it, it's not going to target the popular loans with very little supply as that would defeat the object of providing a return for those investors trying to invest into them having to leave idle funds in their MLIA.
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madpierre
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Post by madpierre on Sept 9, 2015 8:53:14 GMT
Please forgive me if I have missed the answer to this question somewhere, but I am interested in this account as I have considerable 'rainy day' sums just sat in a bank account earning nothing. Instant access is thus very desirable but as the funds would still be loaned out is there not a risk of not all monies being immediately available in the event of some loans going into default?
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Post by chris on Sept 9, 2015 9:17:09 GMT
Please forgive me if I have missed the answer to this question somewhere, but I am interested in this account as I have considerable 'rainy day' sums just sat in a bank account earning nothing. Instant access is thus very desirable but as the funds would still be loaned out is there not a risk of not all monies being immediately available in the event of some loans going into default? Yes there is a risk. Some of the funds are lent, a considerable percentage is held in cash to cover withdrawals, plus as the account fills there should be a weight of funds queued waiting for deployment into the account. Some funds could be tied up in a defaulted loan however we believe that there is a relatively low chance of that happening and there is a provision fund in place to cover that eventuality should it occur.
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bigfoot12
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Post by bigfoot12 on Sept 9, 2015 9:24:50 GMT
... and there is a provision fund in place to cover that eventuality should it occur. Are you able to say how quickly the provision would pay out? Would it step in straight away - like Ratesetter, or would it wait until the loan was resolved in the usual way and then make good any losses (perhaps taking 12 - 24 months)?
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Post by chris on Sept 9, 2015 9:34:19 GMT
... and there is a provision fund in place to cover that eventuality should it occur. Are you able to say how quickly the provision would pay out? Would it step in straight away - like Ratesetter, or would it wait until the loan was resolved in the usual way and then make good any losses (perhaps taking 12 - 24 months)? would be better placed to offer guidance on this.
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pikestaff
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Post by pikestaff on Sept 9, 2015 9:39:46 GMT
chris - do you have any further news on when this account will actually be available?
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jonah
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Post by jonah on Sept 9, 2015 9:41:35 GMT
Based on the end date on that poll... Soon! (Tm)
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Post by chris on Sept 9, 2015 9:41:51 GMT
chris - do you have any further news on when this account will actually be available? See this thread. There's also one unresolved 11th hour issue with compliance that we're working through.
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