|
|
Post by chris on Feb 19, 2014 12:50:54 GMT
Auction close date and drawdown date are not the same thing, and where we extend the auction in this way it will not affect when these auctions are drawn down. Our only motivation for extending the auction is that there would otherwise be a dead period where lenders cannot bid on these loans whilst they are between auction close and drawdown where the underwriting cannot be bid out. New lenders are joining the platform all the time and we would rather offer them the opportunity to invest straight away than have a marketplace with fewer (or no) active loans. Thanks Chris that has set my mind at ease on this one and I understand the desire to drive out underwriting and allow and allow more participation.
However from the outside it is not always clear what is happening on a particular loan with dates moving around. How do I know we know if it is the situation you describe for this loan or one where the drawdown date has also moved. The text on this one still says drawdown in "7 to 10 days". "7 to 10 days" from when ? The date the text was edited ?, the end of auction ? I think the original credit report on this one also said 7 to 10 days and that has already passed. It all adds to confusion. It would be a lot more helpful if whoever maintains this could supply (and update as appropriate) a drawdown date range so it is clear.
One of the changes in the pipeline is to include an event log on each of the loans where you can see when comments and changes were made.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Feb 19, 2014 15:41:34 GMT
I fear that if we just sit back and let the underwriters deal with large loans then the underwriters will take large fees which would otherwise be available to Assetz and its investors. Well as the auction was nearly ending (just over a day to go) I thought I'd do the right thing and bid rather than just buy on the aftermarket and help AC keep underwriting costs down. I hope someone will correct me if I'm wrong, and it may vary from agreement to agreement, but I thought I read somewhere here that underwriters are paid for making their commitment, rather than just for providing funds at drawdown. If that is the case, then AC become liable to pay the underwriting fee as soon as the underwriter is signed up. So there would be no savings to be had by lenders bidding out the underwriters before the auction closes. Perhaps I have misunderstood. I would have hoped that the underwriting fee would depend on both the time the underwriter is committed and the amount of their commitment, so that the total fee payable indeed would reduce if lenders bid out the underwriters before drawdown. If it doesn't save AC anything, then why should any lender want to bid out an underwriter and incur 'dead' time before drawdown? Why not wait until after drawdown and pick up loan parts in the Aftermarket? The only answer I can come up with is if the lender is concerned that there won't be enough loan parts put up by the underwriters to allow them to acquire as much of the loan as they'd like to have.
|
|
bugs4me
Member of DD Central
Posts: 1,845
Likes: 1,478
|
Post by bugs4me on Feb 19, 2014 16:54:05 GMT
Well as the auction was nearly ending (just over a day to go) I thought I'd do the right thing and bid rather than just buy on the aftermarket and help AC keep underwriting costs down. I hope someone will correct me if I'm wrong, and it may vary from agreement to agreement, but I thought I read somewhere here that underwriters are paid for making their commitment, rather than just for providing funds at drawdown. If that is the case, then AC become liable to pay the underwriting fee as soon as the underwriter is signed up. So there would be no savings to be had by lenders bidding out the underwriters before the auction closes. Perhaps I have misunderstood. I would have hoped that the underwriting fee would depend on both the time the underwriter is committed and the amount of their commitment, so that the total fee payable indeed would reduce if lenders bid out the underwriters before drawdown. If it doesn't save AC anything, then why should any lender want to bid out an underwriter and incur 'dead' time before drawdown? Why not wait until after drawdown and pick up loan parts in the Aftermarket? The only answer I can come up with is if the lender is concerned that there won't be enough loan parts put up by the underwriters to allow them to acquire as much of the loan as they'd like to have. I have no idea what financial incentive underwriters receive from AC for their commitment but obviously they're not in it for love and I would expect there would be zero disclosure available. I'm looking closely at my involvement in high value loans where there will obviously be an underwriter around. In particular the couple of just shy of £2M that are active - 72 & 73. In future, rather than jumping in I'll wait until they hit the aftermarket. Currently I've got a few that I've picked up via this route and they start earning from day one of acquisition. So evaluating things on my part to minimise unnecessary dead money especially with the short term loans.
|
|
|
|
Post by pepperpot on Feb 26, 2014 12:16:58 GMT
Anybody got any idea when these two will drawdown? The auctions have been extended and extended and the promise was drawdown would not be extended because of this. I was stupid enough to bid on both of them rather than wait for the secondary market. Add these two to Ki**erm**ster and Liv**p**l and the amount of money I have dead on < 1 year bridge loans is getting a bit silly. On 6-month bridge loans we really need far better visibility on drawdown periods from AC, otherwise I am just going to have to steer clear which would be a shame. Latest whispers from the shadow world are that Liverpool should complete today (26th) and Kiddie by the end of the week. And yes it's looking increasingly silly to bid on the primary with large loans ('ackney).
|
|
|
|
Post by andrewholgate on Feb 26, 2014 12:40:17 GMT
Anybody got any idea when these two will drawdown? The auctions have been extended and extended and the promise was drawdown would not be extended because of this. I was stupid enough to bid on both of them rather than wait for the secondary market. Add these two to Ki**erm**ster and Liv**p**l and the amount of money I have dead on < 1 year bridge loans is getting a bit silly. On 6-month bridge loans we really need far better visibility on drawdown periods from AC, otherwise I am just going to have to steer clear which would be a shame. Latest whispers from the shadow world are that Liverpool should complete today (26th) and Kiddie by the end of the week. And yes it's looking increasingly silly to bid on the primary with large loans ('ackney). I'm now looking for a mole!
|
|
alison
Member of DD Central
Sanctuary!!
Posts: 356 
Likes: 99
|
Post by alison on Feb 26, 2014 12:53:29 GMT
Latest whispers from the shadow world are that Liverpool should complete today (26th) and Kiddie by the end of the week. And yes it's looking increasingly silly to bid on the primary with large loans ('ackney). I'm now looking for a mole! Here he is.............http://www.youtube.com/watch?v=VAzQ7Pn0Bbc
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188 
Likes: 540
|
Post by j on Feb 26, 2014 13:21:38 GMT
Anybody got any idea when these two will drawdown? The auctions have been extended and extended and the promise was drawdown would not be extended because of this. I was stupid enough to bid on both of them rather than wait for the secondary market. Add these two to Ki**erm**ster and Liv**p**l and the amount of money I have dead on < 1 year bridge loans is getting a bit silly. On 6-month bridge loans we really need far better visibility on drawdown periods from AC, otherwise I am just going to have to steer clear which would be a shame. Latest whispers from the shadow world are that Liverpool should complete today (26th) and Kiddie by the end of the week. And yes it's looking increasingly silly to bid on the primary with large loans ('ackney). Re:L'pool loan, taken from AC website: Drawdown update: The borrower and their solicitor are assisting with the draw down and we aim to have the loan drawn down by the end of the week commencing 24th February 2014. 25.2.14
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on Feb 26, 2014 13:24:58 GMT
Latest whispers from the shadow world are that Liverpool should complete today (26th) and Kiddie by the end of the week. And yes it's looking increasingly silly to bid on the primary with large loans ('ackney). Re:L'pool loan, taken from AC website: Drawdown update: The borrower and their solicitor are assisting with the draw down and we aim to have the loan drawn down by the end of the week commencing 24th February 2014. 25.2.14 .....and just found this for the kiddie one: Drawdown update: Assetz are awaiting the receipt of a number of documents to meet our conditions precedent. These include a report of title for the Kidderminster property and planning documents. We have been in contact with the borrower to chase outstanding information and remain confident of drawing the loan soon. 20.2.14
|
|
|
|
Post by andrewholgate on Feb 26, 2014 13:43:45 GMT
Ah! That will be our information flow finally working!
|
|
bugs4me
Member of DD Central
Posts: 1,845
Likes: 1,478
|
Post by bugs4me on Feb 26, 2014 13:52:13 GMT
Ah! That will be our information flow finally working! Cannot beat information flow Andrew whether it's good news (hopefully) or not so good news. Would hate to see AC go the way of a couple of (not be be named) other P2P's.
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on Mar 4, 2014 20:27:51 GMT
One of these loans at least is drawing down tomorrow so, we should then be able to pick up a few units on the aftermarket once underwriters make them available.
|
|
spockie
Member of DD Central
Posts: 299
Likes: 84
|
Post by spockie on Mar 6, 2014 21:57:34 GMT
Anybody from the shadow world or AC have any news on the Epping one?
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on Mar 6, 2014 22:16:57 GMT
Anybody from the shadow world or AC have any news on the Epping one? belonging to neither, I cannot give a definite answer but, wold hazard a guess this will turn up on AM any time over next 1-4 days most.
|
|
agent69
Member of DD Central
Posts: 6,044
Likes: 4,437
|
Post by agent69 on Mar 9, 2014 10:03:55 GMT
Would be nice to know whats happening to Epping.
I fancy a flutter on both but am reluctant to invest in Ipswich without knowing that Epping is going to fly.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Mar 9, 2014 11:23:22 GMT
Would be nice to know whats happening to Epping. I fancy a flutter on both but am reluctant to invest in Ipswich without knowing that Epping is going to fly. Unless you're in a hurry to invest, you can afford to wait and see what happens. There might be 'only' £580k of Ipswich on the Aftermarket at the moment, but the underwriters are holding another £800k in 'reserve', and that will come onto the Aftermarket when the current lot is gone, so this loan is going to be available for quite some time. A cynic might even suggest that some of the underwriter parts might still be held by the underwriters when the loan is paid off!  That might serve as a warning to any small lender who picks up parts in these huge loans thinking that they can get out as quickly as they can from smaller loans. They may be in for a surprise when the time to exit comes. I wonder if underwriters have their own 'longstop' date by which time they are expecting to be relieved of their underwriting duties?
|
|
That might serve as a warning to any small lender who picks up parts in these huge loans thinking that they can get out as quickly as they can from smaller loans. They may be in for a surprise when the time to exit comes.