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Post by yorkshireman on Mar 17, 2016 15:04:34 GMT
“The solution I'm working on will trend towards, but never attain, equal portfolios for all investors.” “There is a time lag due to the processing time of the solution, so after a new investment is made your account can be out of balance for a few hours until the system has traded your "excess" with other lenders so that all lenders have broadly the same holdings.” chris I’m probably being obtuse but I don’t understand that, what happens if I wish to hold £10k in my GBBA, Joe Bloggs wants to hold £100k and Mrs Bloggs wants to hold £500k, or any other permutation for that matter? |
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Post by chris on Mar 17, 2016 15:06:02 GMT
“The solution I'm working on will trend towards, but never attain, equal portfolios for all investors.” “There is a time lag due to the processing time of the solution, so after a new investment is made your account can be out of balance for a few hours until the system has traded your "excess" with other lenders so that all lenders have broadly the same holdings.” chris I’m probably being obtuse but I don’t understand that, what happens if I wish to hold £10k in my GBBA, Joe Bloggs wants to hold £100k and Mrs Bloggs wants to hold £500k, or any other permutation? Proportionally (i.e. 5% in loan 1, 3% in loan 2, etc.) all accounts would be trying to balance themselves to the same distribution.
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Post by yorkshireman on Mar 17, 2016 15:07:49 GMT
“The solution I'm working on will trend towards, but never attain, equal portfolios for all investors.” “There is a time lag due to the processing time of the solution, so after a new investment is made your account can be out of balance for a few hours until the system has traded your "excess" with other lenders so that all lenders have broadly the same holdings.” chris I’m probably being obtuse but I don’t understand that, what happens if I wish to hold £10k in my GBBA, Joe Bloggs wants to hold £100k and Mrs Bloggs wants to hold £500k, or any other permutation? Proportionally (i.e. 5% in loan 1, 3% in loan 2, etc.) all accounts would be trying to balance themselves to the same distribution. Thanks for the prompt response, I did say that I was probably being obtuse!
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duck
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Post by duck on Mar 24, 2016 7:20:13 GMT
Proportionally (i.e. 5% in loan 1, 3% in loan 2, etc.) all accounts would be trying to balance themselves to the same distribution. This does sound a good solution chrisI've just been updating my partners spreadsheet (she was one of the early GBBA investors) and I noted that one of her early loans is due to repay in 9 months and that loan represents 19.902% of her total investment. I would have hated to have seen that money being returned and then take some time to be reinvested! (others might be tempted to withdraw cash - something I'm sure AC would like to avoid) Her account currently holds 51 live loans and has been fully invested for some time. Whilst the account has been picking up small loan parts in the new loans they have been necessarily small using cash from interest/capital repayments. So the account currently shows holdings in 17 loans below £10 but two above £1500 and several more above £500. IMHO a spot of balancing is needed in order to keep the account ticking over nicely long term. I await the 'balancing' implementation with suitable anticipation 
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mikes1531
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Post by mikes1531 on Apr 11, 2016 22:59:02 GMT
Proportionally (i.e. 5% in loan 1, 3% in loan 2, etc.) all accounts would be trying to balance themselves to the same distribution. This does sound a good solution chris I've just been updating my partners spreadsheet (she was one of the early GBBA investors) and I noted that one of her early loans is due to repay in 9 months and that loan represents 19.902% of her total investment. I would have hated to have seen that money being returned and then take some time to be reinvested! (others might be tempted to withdraw cash - something I'm sure AC would like to avoid) Her account currently holds 51 live loans and has been fully invested for some time. Whilst the account has been picking up small loan parts in the new loans they have been necessarily small using cash from interest/capital repayments. So the account currently shows holdings in 17 loans below £10 but two above £1500 and several more above £500. IMHO a spot of balancing is needed in order to keep the account ticking over nicely long term. I await the 'balancing' implementation with suitable anticipation : Will this new algorithm solve the problem I have in my small GBBA, whereby my account isn't reinvesting any of my repayments at all despite there being lots of GBBA-eligible loans with parts available? According to my GBBA statement, the most recent purchase by my account was made nearly five months ago -- on 20/Nov/15! During that time, the balance in the account Awaiting Investment has built up to 2.61% of my total account balance. For that matter, I note that only about 2% (of the 2.6% credited to my account in the past 4.7 months) was interest, so the average interest rate over that period has been about 5.1% p.a. compared to the advertised 7% rate I should be earning. With AC crediting interest payments using twenty decimal places, I don't think this shortfall could be the result of rounding errors. Any thoughts?
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Post by chris on Apr 12, 2016 7:35:46 GMT
mikes1531 - need to look into this in much more detail as other accounts are investing fine. We had one lender recently drop nearly £200k into the GBBA and it was all invested within half an hour. Will report back to you.
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