dermot
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Post by dermot on Jan 28, 2016 21:50:32 GMT
There seems to be quite a lot of good quality generic P2P information on the AC website, but I'm not finding much practical info specific to the GBBA.
So, how long does cash typically wait when invested in GBBA before becoming active and is there an illustration of where one is in the queue in the way that RS does?
Again, looking at GBBA, how does the repayment schedule work? Is it monthly on the 'anniversary' of the loan going live with a proportion of the capital repaid together with interest, or a fixed point in the month?
Presumably cash waiting to be matched with a borrower attracts no interest until matched?
Is there something of an idiot's guide?
dermot
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ilmoro
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Post by ilmoro on Jan 28, 2016 22:04:55 GMT
There seems to be quite a lot of good quality generic P2P information on the AC website, but I'm not finding much practical info specific to the GBBA. So, how long does cash typically wait when invested in GBBA before becoming active and is there an illustration of where one is in the queue in the way that RS does? Again, looking at GBBA, how does the repayment schedule work? Is it monthly on the 'anniversary' of the loan going live with a proportion of the capital repaid together with interest, or a fixed point in the month? Presumably cash waiting to be matched with a borrower attracts no interest until matched? Is there something of an idiot's guide? dermot Its hard to say how long cash will remain uninvested as it entirely depends on the availability of loans for the account to invest your cash in. Recently there have been very limited supply of loans so deploying cash has been slow, that should improve now the pipeline is looking healthy. The GBBA needs either new loans or existing lenders to sell, either via GBBA or through MLIA so it can invest. As long as new loans are eligible (Property LTV criteria) then the GBBA usual gets a specific chunk. With exisiting loans it is competing with demend from investors in the MLIA. It has a slight priority currently I think. Your undeployed cash will be earning 3.75% providing you have set it to be swept into the QAA. There is no queue list as it entirely depends on what existing holdings you have and what loans become available. Repayments are made based on the repayment schedule of the underlying loans which in most cases is the monthly anniversary of its drawdown date, give or take a day of so. So you will receive payments across the course of a month depending on what loans you hold. The exception would be if you were invested in any term loans (or defaults) when invest would be paid at term (on recovery) As above, no interest from GBBA itself on univested cash but 3.75% from QAA if idle funds are swept Not really, except what has been posted on the forum. Just ask is probably the best course. One of us or even Chris (AC CTO) will generally answer or direct you to where to find the info (if we can remember)
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Post by Ton ⓉⓞⓃ on Jan 28, 2016 22:26:47 GMT
There seems to be quite a lot of good quality generic P2P information on the AC website, but I'm not finding much practical info specific to the GBBA. So, how long does cash typically wait when invested in GBBA before becoming active and is there an illustration of where one is in the queue in the way that RS does? Again, looking at GBBA, how does the repayment schedule work? Is it monthly on the 'anniversary' of the loan going live with a proportion of the capital repaid together with interest, or a fixed point in the month? Presumably cash waiting to be matched with a borrower attracts no interest until matched? Is there something of an idiot's guide? dermot Not sure if this will be of any use to you? p2pindependentforum.com/post/83919 about half way down it mentions the GBBA this is a small part of p2pindependentforum.com/post/43867/thread
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dermot
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Post by dermot on Jan 28, 2016 22:53:10 GMT
Thanks guys, that makes things a lot clearer; I've parked a bit of cash in GBBA and set it to sweep to the QAA, so the cash is doing something useful in the interim.
This combination seems very sensible rather than having to hover over a keyboard for some extended time waiting for a loan opportunity to go live.
I will initially look at the GBBA as a home for some of my funds, but will probably look into MLIA after I read up a little more and, perhaps, gain a little confidence.
My aim is now not so much capital growth as creating something of a bond ladder to provide an ongoing supplement to my pension.
Thanks again.
Dermot
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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 28, 2016 23:09:00 GMT
Thanks guys, that makes things a lot clearer; I've parked a bit of cash in GBBA and set it to sweep to the QAA, so the cash is doing something useful in the interim. This combination seems very sensible rather than having to hover over a keyboard for some extended time waiting for a loan opportunity to go live. I will initially look at the GBBA as a home for some of my funds, but will probably look into MLIA after I read up a little more and, perhaps, gain a little confidence. My aim is now not so much capital growth as creating something of a bond ladder to provide an ongoing supplement to my pension. Thanks again. Dermot Remember the GBBA has diversification criteria so it might take some time for your cash to become invested fully as it shouldnt put more than 20% into one loan. This is something else that in times of scarcity slows cash deployment down. You wont just bung it all in one loan and then diversify later. Once you do decide to use MLIA, remember everything is automated on AC, with the MLIA there is no hovering over a keyboard for a loan to go live, no fast fingers. You just set your target for the loan and the system will invest for you, subject to you having cash to buy & there being loan availability. If your target isnt filled immediately then it just keeps chipping away until you tell it to stop or it fills the target. You do of course have to decide which loans and what targets to set.
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Post by crabbyoldgit on Jan 29, 2016 9:54:13 GMT
Ok im not a newbie but i am now after a year starting to move from a fund building position to a consolidating and diversification stage which has made me review my existing loan stock and has raised a few questions i did not worry to much about when just trying to get funds lent out in the famine.
So in loans which are paying back interest and capital is the ltv displayed updated on each payment to represent the new outstanding loan position against the historical valuation of the asset or does it remain the same for the duration of the loan.
Also the calculation of the ltv does not quite make sence to me .It seems that only the major asset is taken into account or some assets offered discounted in the calculation why and on what bases.Unless of course my crude mental arithmetic has gone wrong somewhat.
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trouble
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Post by trouble on Jan 29, 2016 17:12:43 GMT
Ok im not a newbie but i am now after a year starting to move from a fund building position to a consolidating and diversification stage which has made me review my existing loan stock and has raised a few questions i did not worry to much about when just trying to get funds lent out in the famine. So in loans which are paying back interest and capital is the ltv displayed updated on each payment to represent the new outstanding loan position against the historical valuation of the asset or does it remain the same for the duration of the loan. Also the calculation of the ltv does not quite make sence to me .It seems that only the major asset is taken into account or some assets offered discounted in the calculation why and on what bases.Unless of course my crude mental arithmetic has gone wrong somewhat. Have you an example loan or loans you'd like some calculations explaining on?
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mikes1531
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Post by mikes1531 on Jan 30, 2016 21:57:55 GMT
So in loans which are paying back interest and capital is the ltv displayed updated on each payment to represent the new outstanding loan position against the historical valuation of the asset or does it remain the same for the duration of the loan. AFAIK, it updates automatically whenever capital is repaid. (If you look at the LTVs displayed for some of AC's very early loans, it is clear that they've been updated. Loan #14 is a good example.)
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Post by chris on Jan 30, 2016 22:55:19 GMT
So in loans which are paying back interest and capital is the ltv displayed updated on each payment to represent the new outstanding loan position against the historical valuation of the asset or does it remain the same for the duration of the loan. AFAIK, it updates automatically whenever capital is repaid. (If you look at the LTVs displayed for some of AC's very early loans, it is clear that they've been updated. Loan #14 is a good example.) It's a live calculation each time the page is displayed, so if anything changes it's reflected in the figure. Usually that is limited to the loan amount in a capital repayment loan, but if a new valuation were made available on the security then that would also be reflected.
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tomtom
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Post by tomtom on Jan 31, 2016 9:06:03 GMT
Good morning is the Current Accrued Interest figure shown on front page the actual interest earned on the whole investment including QAA?
On the Assets Invest account what does TOTAL NET INSTRUCTIONS reflect?
I assume that I can check interest earned in the various account ie QAA GBBA at any time and interest paid on any loan is updated on the monthly payment date with interest paid on QAA is paid monthly on the 1st. of each month.
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ilmoro
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Post by ilmoro on Jan 31, 2016 12:25:59 GMT
Good morning is the Current Accrued Interest figure shown on front page the actual interest earned on the whole investment including QAA? On the Assets Invest account what does TOTAL NET INSTRUCTIONS reflect? I assume that I can check interest earned in the various account ie QAA GBBA at any time and interest paid on any loan is updated on the monthly payment date with interest paid on QAA is paid monthly on the 1st. of each month. Dont think it does include QAA as mine seems a little light (for swept funds at least) if it did. Apart form that it should be pretty accurate but there will be occassional anomalies where loans reach term without redemption/go into default and there is a delay in updating rates/adding extra phases which results in a temporary issue in accrual calculations Sum of all active buy & sell instructions on your MLIA. If youve got an instruction but its paused then it isnt included but any instructions that are active on suspended loans are. Interest paid will be shown in your statement for that account when it is paid. This should be the stated repayment date but quite often isnt. QAA is paid monthly on 1st as you say and shows in the stement for the account where the funds actually are for swept funds not the QAA. Only interest on direct investments show in QAA statement
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tomtom
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Post by tomtom on Jan 31, 2016 12:38:54 GMT
Good morning is the Current Accrued Interest figure shown on front page the actual interest earned on the whole investment including QAA? On the Assets Invest account what does TOTAL NET INSTRUCTIONS reflect? I assume that I can check interest earned in the various account ie QAA GBBA at any time and interest paid on any loan is updated on the monthly payment date with interest paid on QAA is paid monthly on the 1st. of each month. Dont think it does include QAA as mine seems a little light (for swept funds at least) if it did. Apart form that it should be pretty accurate but there will be occassional anomalies where loans reach term without redemption/go into default and there is a delay in updating rates/adding extra phases which results in a temporary issue in accrual calculations Sum of all active buy & sell instructions on your MLIA. If youve got an instruction but its paused then it isnt included but any instructions that are active on suspended loans are. Interest paid will be shown in your statement for that account when it is paid. This should be the stated repayment date but quite often isnt. QAA is paid monthly on 1st as you say and shows in the stement for the account where the funds actually are for swept funds not the QAA. Only interest on direct investments show in QAA statement What is the advantage or disadvantage of investing direct in the GBBA account against investing direct in the QAA account apart from the possibility of increased earnings due to higher returns on GBBA account?
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ilmoro
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Post by ilmoro on Jan 31, 2016 13:12:25 GMT
Dont think it does include QAA as mine seems a little light (for swept funds at least) if it did. Apart form that it should be pretty accurate but there will be occassional anomalies where loans reach term without redemption/go into default and there is a delay in updating rates/adding extra phases which results in a temporary issue in accrual calculations Sum of all active buy & sell instructions on your MLIA. If youve got an instruction but its paused then it isnt included but any instructions that are active on suspended loans are. Interest paid will be shown in your statement for that account when it is paid. This should be the stated repayment date but quite often isnt. QAA is paid monthly on 1st as you say and shows in the stement for the account where the funds actually are for swept funds not the QAA. Only interest on direct investments show in QAA statement What is the advantage or disadvantage of investing direct in the GBBA account against investing direct in the QAA account apart from the possibility of increased earnings due to higher returns on GBBA account? Currently I would say there is very little disadvantage to investing in GBBA over direct investment into QAA. The main difference is that QAA would provide faster access to funds as it holds a significant percentage in cash (c33-50%) whereas access to GBBA funds is dependent on being able to sell down holdings and therefore demand within GBBA. It can also be argued that funds could be locked in GBBA in suspended loans whereas AIUI this wouldnt happen in QAA except in extreme circumstances. IMO unless you are looking to invest more than 25k in the QAA there is no point in direct investment (slight priority in the queue) over leaving funds in cash account.
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Post by Ton ⓉⓞⓃ on Jan 31, 2016 15:15:03 GMT
Both have provision funds with targets of 5% but neither has reached it yet, current state being: both are at the same level. (GEIA at 3.1%) Are there any ideas on which account might hit 5% first? I suppose I'd really rather we had the actual size of each's PF in LSD (£'s) rather than just the percentage. My thinking is 1.3% of a large number will be more to likely to cover any one problem loan. |
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mikes1531
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Post by mikes1531 on Jan 31, 2016 15:35:59 GMT
I suppose I'd really rather we had the actual size of each's PF in LSD (£'s) rather than just the percentage. My thinking is 1.3% of a large number will be more to likely to cover any one problem loan. I think I'd rather have both statistics, since the actual size of the PF is rather meaningless if we don't know what the total sizes of the GBBA and GEIA are. The point about whether the PF could cover a single big failure is a good one too, especially considering the difference in the diversification of the two accounts. (The GEIA would have a maximum of about a dozen holdings, while the GBBA could have 50+.)
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