Autobid and the SM

Autobodge was much more active last night than the two previous nights. I sold 17 parts at par compared to 4 and 3. It couldn't bid on the PM because it had already funded all PM loans to 50% yesterday and they are within the 48 hour rule.  So this evidence does not help the theory of a direct link between PM and SM spend.  Repayments due today have not been collected (except property interest) and those due yesterday (29th) are still outstanding, but those due 28th have been collected - I reckon that means (including today's property interest) about £492k should have come into the Fulsome Coffers. With total SM purchases of £47k from 22:48 to 06:07, I reckon Autobulge's reserves are still growing. We should see more activity during the day today.

As for what determines how much Autobid spends on SM, I am increasingly of the view that Fiddling Carousel simply stick a number into the program, which may or may not bear some reference to the cash which is available.

I don't often defend the Fine Chaps, but I think this is a very harsh analysis.  Fiscally Competent are managing a successful business and, as a result, we are managing to make some money too.  They are managing Autobodgers cash and making decisions as to how to much to invest on the PM and how much on the SM; I don't see that as managing, even less, interfering with, the SM per se.  They are certainly managing the PM - that's their job.  We may be getting frustrated because we don't understand the rules and therefore can't quite figure out the best way to play them to our advantage.  But that's part of the game as far as I'm concerned.

You have a point in that what they do may be reasonable. The main problem, as registerme says is the lack of transparency - and what I say is questionable from the regulatory viewpoint is doing it 'in a clandestine manner for undeclared purposes'. If they set up a secondary market, and allow no other way of trading, then it should be defined and open, and the Autobidders' purchasing should not be secretly manipulated to suit the operator's purpose (whatever that may be). This is a trading process and should be open and transparent.
In any case, shutting down Autobid on the SM because you have nothing on the PM and want to hold the cash until there is something on the PM is improper fiddling in the market for an operator IMO - even if they do declare it.

I believe autobid investors should reasonably expect their funds to be speedily invested at the diversity % they have chosen. If I used autobid I would not be happy for  my cash to be left sitting idle in reserve waiting for a trickle of new loans when plenty of loan parts are available for immediate investment. We seem to be talking about an accumulation of a few days income and capital repayments I suppose. However, funds placed for investment should be fully invested as soon as possible. Further, where other investors are looking to realise funds fot whatever purpose, it does not seem reasonable to place an artificial obstruction. I'm sure other platforms attempt to facilitate withdrawals as smoothly as possible subject to new demand.

Autobodge pattern overnight was similar to the previous night - unable to spend on the PM due to the 2-day rule, but feasted on the SM. Total SM sales per movement on the Stats page was £95k - double the previous night.  This is matched by my overnight property sales at par which were almost double and 10 times the level experienced on the dark nights over Xmas.  A lot of money came in overnight as repayments due on 29th were settled (£314k).  I don't know whether 31st due repayments were made as I don't have any (relatively few loans repay on 31st, only £54k SME on the loanbook, plus £50k property interest).

Yesterday as a whole my property sales at par were a record in terms of % of what I had on the market, even though I had allowed the more popular loans to lapse for fear of selling too much (there being nothing worth reinvesting in at present).  So clearly Flushed Coffers are finally releasing some of Autobinge's reserves of cash.

Only about 30% of my sales yesterday were made overnight as AB was very active on the SM during the day.  I had imagined Autobodge would spend overnight based on what repayments came in, and activity during the day would be based on new money coming in.  This seems less likely to me now.  Its spend on the SM clearly is not an automatic function of what it spends on the PM, but increasingly is just looking like a figure which FC stick into the program to manage AB's cash as they see fit.

I agree with nick (...... has that been said before?). The easier this game were to become, the more would want to play and the lower the returns for us.