jw01
Posts: 62 
Likes: 21
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Post by jw01 on Feb 25, 2016 15:35:42 GMT
I am currently invested in the GBBA.
I am considering putting money into the MLIA, but before I do so I would be interested to know AC's previous annual default, loss and recovery rates. I couldn't find them on their website.
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Post by andrewholgate on Feb 25, 2016 16:05:21 GMT
We are working on this data and will be releasing it in due course. For now I can say that known potential losses on defaulted loans combined with expected losses on loans that have not defaulted are 0.6% of everything we have ever lent.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,428
Likes: 1,212
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Post by sqh on Feb 25, 2016 16:37:56 GMT
I am currently invested in the GBBA. I am considering putting money into the MLIA, but before I do so I would be interested to know AC's previous annual default, loss and recovery rates. I couldn't find them on their website. I believe all the "repaid" loans were repaid in full, or rolled over to new "live" loan numbers. However, #41 and #70 haven't repaid all accrued interest. In "live" loans, there are some suspended loans which are in default. You should read the Activity and Q&A tabs for these loans and make your own decision on recovery expectations. You will also find discussion of these on the AC Private forum. Defaulted loans aren't hidden from new lenders. Not all P2P platforms are the same.
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Post by Butch Cassidy on Feb 25, 2016 16:59:19 GMT
AC are open & honest about all previous loans (see AH post) from memory only a couple looking to be heading for significant losses. However they may at anytime suspend trading without notice & this can continue for days, weeks even years, despite the fact that most loans are underpinned by strong security - which should provide a floor to any potential losses, so investors are denied access to their money for an indefinite period. Investors have pointed out that the new trading system protects lenders from themselves & does not permit trading until express individual permission has been given, this however is still not sufficient for AC, who claim they need to protect investors from impaired loans under their duty of care - this could however be viewed as just prioritising that duty of fairness for new investors over existing loan holders & doesn't address why existing holders are prevented from trading between themselves. Most distressed loans can be buy/hold or sell depending on the level of discount applied but AC refuse to accept this point of view. So although it is true most loans will be fully recovered there is no way of knowing when you are likely to have access to those funds - which is a major drawback to an otherwise decent platform IMO.
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