j
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Penguins are very misunderstood!
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Post by j on Apr 15, 2014 21:19:30 GMT
IMHO an underwriter is fully entitled to sell or keep their loan parts as they see fit, and there is no reason why they should be under any obligation to tell us, or AC, of their plans. And no, I am not an underwriter. £250k (which is what I was told you need to be invited) is too rich for me! I just thank the underwriters for being there and enabling AC to get big loans away - something that TC and FC struggle with. I worry that the supply is limited, which will constrain AC's growth unless they reduce the entry limit significantly. This takes us back to the argument why AC, and in fact other p2p platforms, do not offer a lower % incentive of that being offered to u/wters to the smaller investor for investing smaller amounts from the outset when an auction is live. This will be highly more encouraging, esp for big loans, than waiting for the AM to buy units in such loans. We never seem to get a reply, positive or negative. One thus assumes that the platforms in general do not like the idea, for one reason or another!
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mikes1531
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Post by mikes1531 on Apr 16, 2014 2:14:23 GMT
IMHO an underwriter is fully entitled to sell or keep their loan parts as they see fit, and there is no reason why they should be under any obligation to tell us, or AC, of their plans. And no, I am not an underwriter. £250k (which is what I was told you need to be invited) is too rich for me! I just thank the underwriters for being there and enabling AC to get big loans away - something that TC and FC struggle with. I worry that the supply is limited, which will constrain AC's growth unless they reduce the entry limit significantly. I fully support people having the right to do what they like -- as long as it doesn't affect others adversely. So I wouldn't mind what underwriters do if it wasn't for the fact that what they do affects the rest of us. For instance, they hold over £1M of Ep****, and effectively control the AM for parts of that loan. If they decide they want to sell their parts, then there's virtually no chance that I could sell any I had, whereas if they were committed to holding their parts then the AM would work more normally, and I'd have a chance of selling if I wanted to. Under normal conditions, I invest for the long term. But if I know I have a need for a good-sized lump of cash in, say, July then I could help AC -- and myself -- by investing in some loans now with the intention of exiting from some parts in July. But I can't do that efficiently if I haven't any clue which loans parts might be saleable and which won't be. Some people might consider that behaviour 'gaming the system' and feel it ought not be supported in any way. I think of it as helping provide liquidity in the AM and helping lenders, both those who want to sell and those who want to buy. Everyone's entitled to their own opinion. Pikestaff has expressed his, and I've expressed mine. I wonder what AC think?
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pikestaff
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Post by pikestaff on Apr 16, 2014 18:08:59 GMT
...I wouldn't mind what underwriters do if it wasn't for the fact that what they do affects the rest of us. For instance, they hold over £1M of Ep****, and effectively control the AM for parts of that loan. If they decide they want to sell their parts, then there's virtually no chance that I could sell any I had, whereas if they were committed to holding their parts then the AM would work more normally, and I'd have a chance of selling if I wanted to. ... I think this is an inevitable consequence of having underwriters, especially for the really big loans where the overhang of parts the underwriters want to sell is going to be massive. The underwriters need to sell down most, if not all, of their holdings so as to be able to recycle their cash into the next underwriting opportunity. If they can't do this they will quickly run out of capacity. If you want to be able to sell quickly, even on the big underwritten loans, you need to break your bids down into sub-£100 parts which you can then sell to smaller investors who do not want the £100 parts being sold by the underwriters.
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mikes1531
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Post by mikes1531 on Apr 16, 2014 19:29:39 GMT
If you want to be able to sell quickly, even on the big underwritten loans, you need to break your bids down into sub-£100 parts which you can then sell to smaller investors who do not want the £100 parts being sold by the underwriters. That's a brilliant idea. I must remember to try that the next time I bid on an active loan. But beware! It won't work if you start with pre-bids. I placed a number of £50 pre-bids for a recent auction, but all my pre-bids were aggregated into a single bid for the total amount when the pre-bids were processed just before the auction actually started. We probably need to ask chris to reprogram the pre-bid processor to convert pre-bids to actual bids on a one-to-one basis rather than aggregating them. I've just looked at all four loans now available in the AM and asked to buy £99 worth. That brought up no available parts. Either there aren't many lenders who have tried this technique, or those who have tried it have been very successful selling whatever parts they want to sell.
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pikestaff
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Post by pikestaff on Apr 17, 2014 9:15:33 GMT
...We probably need to ask chris to reprogram the pre-bid processor to convert pre-bids to actual bids on a one-to-one basis rather than aggregating them... I agree! I was not aware that it did aggregate them. chris?
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Post by chris on Apr 17, 2014 9:51:26 GMT
It doesn't aggregate them unless a loan is taken to auction and then reverted to pre-bids which is a rare occurrence.
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mikes1531
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Post by mikes1531 on Apr 18, 2014 2:44:48 GMT
It doesn't aggregate them unless a loan is taken to auction and then reverted to pre-bids which is a rare occurrence. Thanks for the confirmation. That's good news. I must have mis-remembered.
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thebillet
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Post by thebillet on Jan 27, 2015 8:31:45 GMT
Partial repayment of capital but no interest just made to account 3/7ths.
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star dust
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Post by star dust on Jan 27, 2015 10:01:04 GMT
Partial repayment of capital but no interest just made to account 3/7ths. Just reduced my target now - thanks to your post. I had increased my holding of this over the past month or so, and it worked quite well as I am now back to my original level of holding after the reduction today. Would have been nice to get some interest though  . The re-payment page seems to have gone a bit haywire, but I hope we get it all in July  .
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jan 27, 2015 14:40:06 GMT
It all the different interest components i would guess. 52k is the interest on the principal up until now, 3.6k is the interest on that interest, 16k is the interest from now on the remaining loan, & the 1.2k is the interest on that.
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mikes1531
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Post by mikes1531 on Jan 28, 2015 3:09:49 GMT
It all the different interest components i would guess. 52k is the interest on the principal up until now, 3.6k is the interest on that interest, 16k is the interest from now on the remaining loan, & the 1.2k is the interest on that. : The above is a nice theory, but I can't make it work. I don't think there's any interest on interest involved. The loan drew down on 8/Jul. The £300k repayment was on 27/Jan, which was 9 months and 19 days later. The remaining £400k is due at the end of the 15-month term, which is a further 5 months and 11 days along. My theory of the origin of the numbers in the repayment schedule is... £700k x 10% = £70k/year. So 9 months would be 9/12 of that, or £52,500. And 19 days would be 19/365 of that, or £3,644. For the remaining balance... £400k x 10% = £40k/year. So 5 months would be 5/12 of that, or £16,667. And 11 days would be 11/365 of that, or £1,205.
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Post by chris on Jan 28, 2015 9:42:47 GMT
It's just a function of how the system builds up the profile of the loan. The repayments screen should be aggregating them but there's a display bug.
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star dust
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Post by star dust on Jan 29, 2015 18:09:02 GMT
It all the different interest components i would guess. 52k is the interest on the principal up until now, 3.6k is the interest on that interest, 16k is the interest from now on the remaining loan, & the 1.2k is the interest on that. I see you've retrieved your hat ilmoro, it looks much better on you anyway  . It's just a function of how the system builds up the profile of the loan. The repayments screen should be aggregating them but there's a display bug. Ah, one of those!
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. The re-payment page seems to have gone a bit haywire, but I hope we get it all in July 
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