tomtom
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Post by tomtom on Jan 26, 2016 12:56:46 GMT
How is any cash which is being held in the QAA account distributed between the demands of both MLIA and GBBA accounts when shares become available either from new loans or shares being sold from exiting loans ?
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SteveT
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Post by SteveT on Jan 26, 2016 13:01:36 GMT
How is any cash which is being held in the QAA account distributed between the demands of both MLIA and GBBA accounts when shares become available either from new loans or shares being sold from exiting loans ? Money in the QAA can either be invested there directly, in which case it stays there until you remove it, or else swept in as "idle cash" from one of your other accounts. However all swept money is still notionally included in / associated with the account you originally put it in (MLIA / GBBA / GEIA / Cash Ac) so it can only purchase new parts in the account it came from. If you hover over the "Lent from Idle Funds" figure in your QAA it will tell you where it all came from.
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tomtom
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Post by tomtom on Jan 26, 2016 13:17:33 GMT
How is any cash which is being held in the QAA account distributed between the demands of both MLIA and GBBA accounts when shares become available either from new loans or shares being sold from exiting loans ? Money in the QAA can either be invested there directly, in which case it stays there until you remove it, or else swept in as "idle cash" from one of your other accounts. However all swept money is still notionally included in / associated with the account you originally put it in (MLIA / GBBA / GEIA / Cash Ac) so it can only purchase new parts in the account it came from. If you hover over the "Lent from Idle Funds" figure in your QAA it will tell you where it all came from. Sorry did not explain my question well, cash in my QAA account is split approx 70% form GBBA and 30% form MLIA what I am asking how does Assetz decide which account(MLIA OR GBBA) to invest my cash in when shares become available. The other way of looking at this question would be how does Assetz decide what % of shares which become available again either from new loans or from existing loans beging sold to take into the GBBA account before puting them up purchasing by existing members.
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SteveT
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Post by SteveT on Jan 26, 2016 13:21:58 GMT
That's a question that chris would have to address, as the % loan allocation process between MLIA / GBBA / GEIA / QAA happens inside the "black box" ! |
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Post by chris on Jan 26, 2016 13:33:56 GMT
Money in the QAA can either be invested there directly, in which case it stays there until you remove it, or else swept in as "idle cash" from one of your other accounts. However all swept money is still notionally included in / associated with the account you originally put it in (MLIA / GBBA / GEIA / Cash Ac) so it can only purchase new parts in the account it came from. If you hover over the "Lent from Idle Funds" figure in your QAA it will tell you where it all came from. Sorry did not explain my question well, cash in my QAA account is split approx 70% form GBBA and 30% form MLIA what I am asking how does Assetz decide which account(MLIA OR GBBA) to invest my cash in when shares become available. The other way of looking at this question would be how does Assetz decide what % of shares which become available again either from new loans or from existing loans beging sold to take into the GBBA account before puting them up purchasing by existing members. If your funds are in the account, rather than queued, then they are treated as one mass of funds. So they all go in and are invested proportionately across all the loans the QAA holds and as funds are withdrawn it comes out of the cash allocation and those loan units are released as required. There's no priority or split. If there's a liquidity crisis in the account and we cannot service withdrawals as they're made then they're processed in the order they're requested, and queued for processing in that order as and when the QAA can obtain more cash to pay out (either deposits or loan unit sales).
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tomtom
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Post by tomtom on Jan 26, 2016 14:26:22 GMT
Sorry did not explain my question well, cash in my QAA account is split approx 70% form GBBA and 30% form MLIA what I am asking how does Assetz decide which account(MLIA OR GBBA) to invest my cash in when shares become available. The other way of looking at this question would be how does Assetz decide what % of shares which become available again either from new loans or from existing loans beging sold to take into the GBBA account before puting them up purchasing by existing members. If your funds are in the account, rather than queued, then they are treated as one mass of funds. So they all go in and are invested proportionately across all the loans the QAA holds and as funds are withdrawn it comes out of the cash allocation and those loan units are released as required. There's no priority or split. If there's a liquidity crisis in the account and we cannot service withdrawals as they're made then they're processed in the order they're requested, and queued for processing in that order as and when the QAA can obtain more cash to pay out (either deposits or loan unit sales). Chris what do you mean in account rather than queued? My understanding is (perhaps I am wrong) that any cash which is waiting to be invested in my MLIA account can be deposited in the QAA account and earn interested but when shares in the MLIA account which I have indicated I would like to purchase become free money is transferrred across automatically to purchase the shares available. Is this correct or not?
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Post by chris on Jan 26, 2016 14:30:12 GMT
If your funds are in the account, rather than queued, then they are treated as one mass of funds. So they all go in and are invested proportionately across all the loans the QAA holds and as funds are withdrawn it comes out of the cash allocation and those loan units are released as required. There's no priority or split. If there's a liquidity crisis in the account and we cannot service withdrawals as they're made then they're processed in the order they're requested, and queued for processing in that order as and when the QAA can obtain more cash to pay out (either deposits or loan unit sales). Chris what do you mean in account rather than queued? My understanding is (perhaps I am wrong) that any cash which is waiting to be invested in my MLIA account can be deposited in the QAA account and earn interested but when shares in the MLIA account which I have indicated I would like to purchase become free money is transferrred across automatically to purchase the shares available. Is this correct or not? There is a maximum amount that can be invested in the account and if you breach that total then your funds are queued. That's not the case currently (unless you go over the personal limits) as there is spare capacity in the account.
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tomtom
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Post by tomtom on Jan 26, 2016 14:39:08 GMT
Chris what do you mean in account rather than queued? My understanding is (perhaps I am wrong) that any cash which is waiting to be invested in my MLIA account can be deposited in the QAA account and earn interested but when shares in the MLIA account which I have indicated I would like to purchase become free money is transferrred across automatically to purchase the shares available. Is this correct or not? There is a maximum amount that can be invested in the account and if you breach that total then your funds are queued. That's not the case currently (unless you go over the personal limits) as there is spare capacity in the account. Chris thanks for your answer regarding queuing, but will you please confirm if my understanding about depositing money from my MLIA account in the QAA would be transferred across to purchase any available shares which become available on the MLIA account is correct?
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Post by chris on Jan 26, 2016 14:48:08 GMT
There is a maximum amount that can be invested in the account and if you breach that total then your funds are queued. That's not the case currently (unless you go over the personal limits) as there is spare capacity in the account. Chris thanks for your answer regarding queuing, but will you please confirm if my understanding about depositing money from my MLIA account in the QAA would be transferred across to purchase any available shares which become available on the MLIA account is correct? Hopefully I'm understanding your question correctly. You should always deposit funds where you want them to be invested. So if you want to buy loan units via the MLIA then you need to transfer those funds to the MLIA. Under the QAA you then have the option to turn on the automatic sweeping of funds from other accounts into the QAA. If you switch that option on the system will take funds from the MLIA (and GBBA / GEIA / cash) that are not currently invested and will invest them in the QAA for you. At the exact moment those funds are needed, because a loan unit comes up for sale, then the needed funds are instantly transferred back out of the QAA and into the account they came from. What the system will not do is take money you've invested directly in the QAA and automatically send them to the MLIA if you have an unfunded buy order. You need to be explicit by transferring the funds to the desired destination and then letting the system invest them from there into the QAA.
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tomtom
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Post by tomtom on Jan 26, 2016 14:59:57 GMT
Chris thanks for your answer regarding queuing, but will you please confirm if my understanding about depositing money from my MLIA account in the QAA would be transferred across to purchase any available shares which become available on the MLIA account is correct? Hopefully I'm understanding your question correctly. You should always deposit funds where you want them to be invested. So if you want to buy loan units via the MLIA then you need to transfer those funds to the MLIA. Under the QAA you then have the option to turn on the automatic sweeping of funds from other accounts into the QAA. If you switch that option on the system will take funds from the MLIA (and GBBA / GEIA / cash) that are not currently invested and will invest them in the QAA for you. At the exact moment those funds are needed, because a loan unit comes up for sale, then the needed funds are instantly transferred back out of the QAA and into the account they came from. What the system will not do is take money you've invested directly in the QAA and automatically send them to the MLIA if you have an unfunded buy order. You need to be explicit by transferring the funds to the desired destination and then letting the system invest them from there into the QAA. Chris Your have understood my question and answerred it and I can confirm that what you have describled is exactly what I have done. Since we are doing so well can you please confirm hopefully my last point. I have invested money in my GBBA direct and at present it is sitting in QAA earning interested, but at some time hopefully very shortly GBBA will call for this money and invest it in the GBBA account according to the program inplace at time of transfer. I have no control on what loans it is lent to at any time it is on this board, the actual distribution between the various loans is adjust over time. Is this broadly correct? By the way unlike my looks which have improved with gae my spelling has not improved at all, so please excuse it.
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Post by chris on Jan 26, 2016 15:01:44 GMT
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mikes1531
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Post by mikes1531 on Jan 30, 2016 15:02:24 GMT
One area that chris has not explained is what happens when a MLIA sells a piece of a GBBA-eligible loan. Since there are GBBAs which are not fully invested, I would expect that the amount being sold would be divided between MLIAs with buy instructions and GBBAs that could accept a bit more of the loan without becoming overweight in that loan. Questions I have about this process include... - How is the MLIA/GBBA allocation determined? (i.e. is it based on the number of accounts with active buying instructions? Or the amount requested by the active buying instructions? Or is the GBBA treated like a single MLIA? Or...)
- How does the sale show up in the selling MLIA's statement? (In general, I haven't noticed any unusual entries in my statement. (*) Say I sell £50 of a GBBA-eligible loan. If there's a lot of demand for that loan, I tend to see about 50 £1 purchases. If there's only a small amount of demand, my £50 part will be sold off in a few, roughly equal-sized, chunks. In either case, is one of those parts destined for GBBAs?)
- If some of each sale is allocated to GBBAs, and considering how active the SM is, why aren't GBBAs more fully invested? And why does the statement for my own GBBA, which is not fully invested, show that it's been over ten weeks since the last time it bought anything?
(*) I've had one recent exception to this. I sold £50 of a GBBA-eligible loan, and that generated 800 entries in my statement! I haven't looked at all of those in detail, but a few were sized at £1+, which I presume went to other MLIAs. The great majority, however, were micro-micro-shrapnel -- the ones I saw were either £0.0000000000000000024 or £0.0000000000000000025. Did those go to a few hundred GBBAs? Perhaps that was just an AC experiment, as if it were common practice I'd expect to some buying activity in my GBBA.
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Post by chris on Jan 30, 2016 23:09:26 GMT
mikes1531 - GBBA / GEIA decide which loans to invest in at the provision fund level, so overall the account will say "I have this much cash and want to hold roughly £x in loan y". The amount to purchase is then split between lenders with available funds and where it would not breach their own diversification level. There is then some level of shuffling to allow individual lenders to rebalance their accounts but that is an algorithm that has been dialled back due to causing too many transactions previously and needs to be improved again. I have an experimental version I'm working on but it's a difficult problem so it could still be a little while yet. Once a decision to buy has been made by the GBBA it enters the same queue as any MLIA instructions, and is allocated its share as if it were a manual instruction. GEIA is given a priority whereby the loan units being sold are split in half. Both halves then use the same algorithm as usual but the GEIA gets to participate in both halves whereas the MLIA participates in just one of them. That heavily weights the market in the GEIA's favour whilst still giving some allocation to the MLIA. In time that will be turned off or dialled back as it was with the GBBA. One mechanism we're using more is that system administrators can create sell instructions that will only sell to the MLIA or only to the IAs, which is how they've been controlling the exact amounts being released to the MLIA with recent loans. Again with increased deal flow we'll use that function more sparingly. In terms of why the GBBA isn't investing in your specific examples - I'd need to look into the details more thoroughly. The GBBA has been investing, although one of the quirks of the diversification algorithm is that it is aware of loans where funds have been called and reserves funds for them. Perhaps that has been interfering. I'll keep a close eye on it over the next few drawdowns.
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SteveT
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Post by SteveT on Feb 2, 2016 9:04:08 GMT
Despite the steady stream of shrapnel acquisition in my MLIA, my relatively-recently opened GBBA remains dead to the world, still holding 3 uncomfortably large chunks of 201, 222 and 223, about 50% unlent cash (kicking its heels in the QAA) and nothing else bar some pico-parts. I'm forcing the pace by filling up the MLIA daily from the GBBA's idle cash but I'm surprised the GBBA isn't benefiting at all from the recent spate of selling. Hopefully it will wake up when all these upcoming new loans draw down ... , having exported my uninvested GBBA cash yesterday across to my MLIA, my remaining GBBA money is now 100% invested but in just 3 loans (201, 222, 223) plus some micro shrapnel. Will the system naturally diversify my holdings into some of the upcoming loans as they launch this week? I'm a little uncomfortable having such large holdings in so few loans (certainly well over the 20% "limit" I understand the GBBA aims for). Thanks.
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Post by chris on Feb 2, 2016 10:13:35 GMT
Despite the steady stream of shrapnel acquisition in my MLIA, my relatively-recently opened GBBA remains dead to the world, still holding 3 uncomfortably large chunks of 201, 222 and 223, about 50% unlent cash (kicking its heels in the QAA) and nothing else bar some pico-parts. I'm forcing the pace by filling up the MLIA daily from the GBBA's idle cash but I'm surprised the GBBA isn't benefiting at all from the recent spate of selling. Hopefully it will wake up when all these upcoming new loans draw down ... , having exported my uninvested GBBA cash yesterday across to my MLIA, my remaining GBBA money is now 100% invested but in just 3 loans (201, 222, 223) plus some micro shrapnel. Will the system naturally diversify my holdings into some of the upcoming loans as they launch this week? I'm a little uncomfortable having such large holdings in so few loans (certainly well over the 20% "limit" I understand the GBBA aims for). Thanks. It will actually try and sell out the excess of those loans to get back under the 20% limit as a matter of priority before then using the idle cash to buy back in to anything else that comes on the market. If it can diversify with others then it will do so but that algorithm isn't particularly efficient / aggressive at the moment.
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