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Post by Ton ⓉⓞⓃ on Mar 30, 2014 14:13:53 GMT
Considering what has happened my suggestion to AC might be that when there has been a material change in the circumstances of a current loan some sort of flag should appear in the accounts of Lenders, perhaps all loans are listed in green, new info comes in and it goes amber (or just another colour) and if trading should be frozen in a stock it's line in "My Account" goes red. Although freezing is unlikely, someone on this board mentioned people specifically trade in defaulting loans; that's not quite my cup of tea. I like this thread as the issues have been seriously discussed and to my mind has come to a valid conclusion (though not necessarily my conclusion above). IN EDIT. Thanks chris for your work just before a big release. Do you ever get a day off? |
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Post by chris on Mar 30, 2014 14:19:26 GMT
Considering what has happened my suggestion to AC might be that when there has been a material change in the circumstances of a current loan some sort of flag should appear in the accounts of Lenders, perhaps all loans are listed in green, new info comes in and it goes amber (or just another colour) and if trading should be frozen in a stock it's line in "My Account" goes red. Although freezing is unlikely, someone on this board mentioned people specifically trade in defaulting loans; that's not quite my cup of tea. I like this thread as the issues have been seriously discussed and to my mind has come to a valid conclusion (though not necessarily my conclusion above). We definitely need to tighten our reporting procedures. Tomorrow the event log will go live which will help. A warning light of some kind would be beneficial so will no doubt be built sooner rather than later. This is all being discussed at board level to make sure we're doing all we can to be the best in the industry.
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Post by chris on Mar 30, 2014 14:20:05 GMT
IN EDIT. Thanks chris for your work just before a big release. Do you ever get a day off? My wife wishes I did, but I'd probably get pretty bored!
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Post by pepperpot on Mar 30, 2014 14:52:41 GMT
IN EDIT. Thanks chris for your work just before a big release. Do you ever get a day off? My wife wishes I did, but I'd probably get pretty bored! Hopefully the wife doesn't read the forum, otherwise she might conclude that you think she's boring  . Have a box of chocolates standing by, just in case!
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koba
Posts: 45 
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Post by koba on Mar 30, 2014 15:13:21 GMT
The same info was available to everybody. Those who sold have not sold based on some nudge nudge wink wink information that was slipped to them by somebody at AC. I agree that not everybody reads this forum, but the fact remains that it is here, publicly available for all to read if they so choose. It would indeed by treating yesterday's and today's buyers more favourably than all previous buyers of E-T*****Y loan parts. I hope unwinding recent sales will not be an option that AC considers. I have no problem with them blocking sales once they themselves have announced that there is indeed a problem, if that is the case. I have not checked the T&Cs but we should not take it for granted that AC (the platform operator) has any legal standing to invalidate deals once contracted. There is a reason we say P2P. Suspending trading via the platform is altogether another matter. Moreover, even if they have the right, I would imagine they would run a mile before exercising it. Just imagine the sort of precedent it would set vis a vis future listings. On the whole, I think andrewholgate must have been talking of something rather different.
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Post by bracknellboy on Mar 30, 2014 16:21:47 GMT
I think is is worth noting - if I recall correctly fairly - that early on in this thread someone suggested that, and then noted it had already happened, a question viz a viz the winding up notice be posted on the loan Q&A. Anyone buying from the AM after that point would have straight access to that information without having to separately find it on this board or elsewhere. Unless of course they chose not to review the loan Q&A before buying......
Public/private info/rolling back sales: the winding up notice is 'public information' and has been since 26/02 apparently. What makes its re-tweeting on this forum more 'public' than it was before from the point of view of signficance to AC. So do you roll back all sales back to that date ?? Doesn't stack up.
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Mar 30, 2014 17:11:38 GMT
Having had a whiff of something that could indicate a short circuit I decided it was time to "E" off and promptly dumped my holding. Hopefully I have made a few bob and got my capital back but one thing I am certain of is that I will sleep soundly in my bed tonight.
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Post by Ton ⓉⓞⓃ on Mar 30, 2014 19:06:11 GMT
Having had a whiff of something that could indicate a short circuit I decided it was time to "E" off and promptly dumped my holding. Hopefully I have made a few bob and got my capital back but one thing I am certain of is that I will sleep soundly in my bed tonight. That's very funny, you're saying you gave it the big E.
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j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
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Post by j on Mar 30, 2014 19:09:01 GMT
Having had a whiff of something that could indicate a short circuit I decided it was time to "E" off and promptly dumped my holding. Hopefully I have made a few bob and got my capital back but one thing I am certain of is that I will sleep soundly in my bed tonight. ...and the units just keep coming. As soon as some are sold, others replace them
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Post by Ton ⓉⓞⓃ on Mar 30, 2014 20:08:52 GMT
I find it bizzare that there is a thread saying that something's a bit off yet the units keep shifting. This is very different from TC where SM/AM trading would be suspended until the situation was clarified one way or another. That is an interesting difference between here and TC, but it reflects the contract that exists between the borrower and lender. Just been looking at the first of the three Lenders Day vids and about half way thru' he talks about AC's approach to default, which is very bank like & business centred, although I think he said centred on not losing the lenders money. Anrdew Holgate makes two posts in this thread both are revealing, it's worth reading 'em IN EDIT. Having had a whiff of something that could indicate a short circuit I decided it was time to "E" off and promptly dumped my holding. Hopefully I have made a few bob and got my capital back but one thing I am certain of is that I will sleep soundly in my bed tonight. ...and the units just keep coming. As soon as some are sold, others replace them Yes j1 I've see nine different Lenders selling a total of 3.12k today and I missed what Merlin sold unless he lends under a pseudonym for privacy as I do.
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Post by badger on Mar 30, 2014 20:18:38 GMT
As an aside - interest is paid at term (October). Assuming it gets paid at all, it will have to be split many ways as the same units will have passed through many hands. Each lender has accrued interest, in some cases for a few days or even a few hours.
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mikes1531
Member of DD Central
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Post by mikes1531 on Mar 30, 2014 20:25:44 GMT
As things stand NOW those who have sold have given up a lot of opportunity cost (bidding, funding, waiting) to achieve a little more peace of mind. Those that have bought have gotten access to inventory they would not otherwise have had access to with interest accruing immediately. The first sentence above is true only if the selling lender already owns all the loan parts they want of the three bridging loans that underwriters are selling right now in the Aftermarket. If not, then they'll take the proceeds from their E-T*****Y part sales and reinvest it immediately in one of those bridging loans and they'll have no additional loss whatsoever. In fact, they'll have improved their income by virtue of the fact that the bridging loans pay interest monthly whereas theE-T*****Y loan pays interest only at maturity in October. The latter sentence above is true only if there turns out to be no problem at all with the E-T*****Y loan. I hope that's the case, but any lender with limited funds who feels they already are diversified adequately might be sensible to get out of a loan that might have a higher chance of default than other available loans. Having said that, why haven't I put my E-T*****Y loan parts up for sale? Good question!
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mikes1531
Member of DD Central
Posts: 6,453
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Post by mikes1531 on Mar 30, 2014 20:32:17 GMT
Each lender has accrued interest, in some cases for a few days or even a few hours. I think interest accrues in one day chunks, so it probably isn't possible to accrue 'a few hours' of interest. I expect that whoever owns the loan part at midnight accrues that day's interest. No doubt chris will correct this if I'm wrong.
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Post by Ton ⓉⓞⓃ on Mar 30, 2014 21:28:44 GMT
Each lender has accrued interest, in some cases for a few days or even a few hours. I think interest accrues in one day chunks, so it probably isn't possible to accrue 'a few hours' of interest. I expect that whoever owns the loan part at midnight accrues that day's interest. No doubt chris will correct this if I'm wrong. That's an interesting question, I'm trying to avoid picking up interest for this Tax Year, so I bought some units on the AM the day before the interest was due to pay out, but I bought it in the afternoon, and as far as I remember I didn't get any interest for that day. I've a vague memory it works out at about 3pence a day. If my memory's right I think it means that the part day's interest goes to the seller. I'm not gonna say chris's name in this as he's the worlds busiest man at the moment. Can someone with more experience correct me if I'm wrong? IN EDIT. Reading a couple of posts on it seems I'm wrong concerning the above. I just remember checking the next day and seeing no interest had accrued for me. The tax man's getting a letter and 20% of 3p.
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andy2001
Member of DD Central
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Post by andy2001 on Mar 30, 2014 21:36:23 GMT
Is the winding up order against a subsidiary of the co? If I recall correctly, they were backed heavily by a capital venture firm with something like £10m & the loan was/is fully secured. So, find this situation quite odd & surely AC would have known about it via their regular monitoring. Can andrewholgate investigate & provide us a definite answer if there are any issues or not? Yes the loan is to E-T*****Y Ltd with a fixed and floating charge plus PG and cross guarantee from other companies in the group. The wind up request is against E-T*****Y Trading Ltd.
About the security the Risks and issues section of the credit report states "Light on security"
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. Have a box of chocolates standing by, just in case!
