baldpate
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Post by baldpate on May 18, 2016 21:05:12 GMT
Unfortunately, mikes1531 , I think you've just made the argument for a fall in the rates offered on the GEA & the GBBA (with proportionate knock-on effect for the other two deposit-type accounts) - which is what I fully expect to happen as soon as ISA money starts to flow in, if not earlier. The only question in my mind, and the factor which will determine whether or not I continue with AC, is how far the rates will fall - or, more accurately, where they end up relative to where the competition end up. Like mrclondon , I am beginning to question the extent to which I shall place future reinvestments with AC. |
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oldgrumpy
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Post by oldgrumpy on May 19, 2016 8:16:57 GMT
I rarely even consider sub 9% on AC. If I want to take the MLIA risk in feel at least 2% above the GBBA is needed. Consequently, I have an increasing amount of cash waiting in QAA and which I probably will have to withdraw. With both smallish loans about to be drawn down this week, AC have stated they are eligible for GBBA, but refuse to say what % of them will go that way, so I doubt that I (we) will be allocated more than a low three figure portion of each. Only a couple of "dodgy" loans are available at above 9% on the SM, and most of the upcoming goes down to 7%.
That's the way AC wants to go. I also would not be surprised to see GBBA/GEIA drop to 6.5%, or even 6% soon.
The problem is I now have too much spread around on property "activity" and not enough on business lending. I do note that to receive 10%+ on unsecured on Frozen Carrots now we have to go for C,D and E risk. I am assuming AC now only takes on lower risk types at sub 9%, such as A+, A and maybe B creeps over 9%. (??)
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Post by chris on May 19, 2016 10:05:58 GMT
AC have stated they are eligible for GBBA, but refuse to say what % of them will go that way, so I doubt that I (we) will be allocated more than a low three figure portion of each has posted a larger update here. Being away I haven't been involved with this I don't know the circumstances around the bit I've quoted, but it's quite possible that the team simply do not know. Unless there is an explicit allocation to the GBBA which hasn't been the case in recently drawn loans then the GBBA gets the same allocation as the MLIA with the same priority. It would operate as if all those GBBA investors were simply investing via the MLIA with those loan units just happening to end up in the GBBA.
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oldgrumpy
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Post by oldgrumpy on May 19, 2016 10:34:42 GMT
AC have stated they are eligible for GBBA, but refuse to say what % of them will go that way, so I doubt that I (we) will be allocated more than a low three figure portion of each has posted a larger update here. Being away I haven't been involved with this I don't know the circumstances around the bit I've quoted, but it's quite possible that the team simply do not know. Unless there is an explicit allocation to the GBBA which hasn't been the case in recently drawn loans then the GBBA gets the same allocation as the MLIA with the same priority. It would operate as if all those GBBA investors were simply investing via the MLIA with those loan units just happening to end up in the GBBA. Ah. If that means the allocation is made according to the number of aspiring investors in MLIA and all investors in the GBBA, (both shifting figures) no wonder exact predictions cannot be made, and allocations are fair. What I have previously thought is that a chosen larger proportion of loans has been thrown into the GBBA account purely because there is uninvested money there, and AC would rather MLIA money be uninvested than GBBA money. All very confusing. Let's enjoy a wonderful summer. I promise not to be grumpy any more*. * before tomorrow 
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Post by andrewholgate on May 19, 2016 11:32:43 GMT
I bet oldgrumpy is off to Fife to get some of Fife's fine banananananananas |
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Post by chris on May 19, 2016 11:57:08 GMT
andrewholgate has posted a larger update here. Being away I haven't been involved with this I don't know the circumstances around the bit I've quoted, but it's quite possible that the team simply do not know. Unless there is an explicit allocation to the GBBA which hasn't been the case in recently drawn loans then the GBBA gets the same allocation as the MLIA with the same priority. It would operate as if all those GBBA investors were simply investing via the MLIA with those loan units just happening to end up in the GBBA. Ah. If that means the allocation is made according to the number of aspiring investors in MLIA and all investors in the GBBA, (both shifting figures) no wonder exact predictions cannot be made, and allocations are fair. What I have previously thought is that a chosen larger proportion of loans has been thrown into the GBBA account purely because there is uninvested money there, and AC would rather MLIA money be uninvested than GBBA money. All very confusing. Let's enjoy a wonderful summer. I promise not to be grumpy any more*. * before tomorrow That is an older practice that was temporarily used during the loan drought at the end of last year and beginning of this that has since been mostly dropped. As far as I'm aware it is no longer used at all with the GBBA although it is still used for the GEIA due to the continuing limited supply of loans. As ever more supply solves all problems (until it starts creating more).
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oldgrumpy
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Post by oldgrumpy on May 19, 2016 11:59:55 GMT
I bet oldgrumpy is off to Fife to get some of Fife's fine banananananananas Fife at a time, dear boy, fife at a time ...or maybe six!!  Not gone away though. Just spent a week testing the pubs along the Staffs & Worcs Canal - including one to which I lent £20 via Farty Chaircovers a couple of years back (and yes, he did serve the local ale which I questioned him on at the time, to a high standard too).
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SteveT
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Post by SteveT on May 19, 2016 12:06:11 GMT
I bet oldgrumpy is off to Fife to get some of Fife's fine banananananananas Fife at a time, dear boy, fife at a time ...or maybe six!! Not gone away though. Just spent a week testing the pubs along the Staffs & Worcs Canal - including one to which I lent £20 via Farty Chaircovers a couple of years back (and yes, he did serve the local ale which I questioned him on at the time, to a high standard too). Does that qualify as pier-to-pier lending? [Strictly speaking, probably not as piers stick out  ]
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registerme
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Post by registerme on May 19, 2016 12:24:15 GMT
I have to say that, whilst I hope that the MLIA continues (with good / better yields), I agree with the inference that in a world of generally lower returns I would expect the target return on the GBBA / GEIA to experience downwards pressure. If it doesn't the difference in the "value proposition" of the MLIA on the one hand and GBBA / GEIA on the other just doesn't stack up.
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Post by andrewholgate on May 19, 2016 12:55:27 GMT
Fife at a time, dear boy, fife at a time ...or maybe six!! Not gone away though. Just spent a week testing the pubs along the Staffs & Worcs Canal - including one to which I lent £20 via Farty Chaircovers a couple of years back (and yes, he did serve the local ale which I questioned him on at the time, to a high standard too). Does that qualify as pier-to-pier lending? [Strictly speaking, probably not as piers stick out ] They still navigate by beacons in that part of the world. More like pyre to pyre.... TAXI!
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Post by mrclondon on May 19, 2016 13:29:05 GMT
For the benefit of those that haven't seen my post regarding W&Co's latest round of rate reductions, their best (p2p) rate is now 3.75% pa for 3 years ... which is the same as AC's QAA and 0.5% below AC's 30DAA.
A combination of heavy TV advertising bringing in the punters and what appears to be a preference for mini-bond finance rather than p2p has been driving p2p rates at W&Co progressively lower ever since launch with the exception of occasional special offers.
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dermot
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Post by dermot on May 30, 2016 17:22:54 GMT
Just looking for a home for a bit of cash and I notice that there is still over £420K of #250 ( T******** I*******) available at 8.5%
Is there some particular reason why this seems to be relatively unattractive, even while there is a bit of a drought?
I get that the LTV of 54% is set against the target shares of the acquisition, rather than the holding company, but is that the only reason for the relatively low take up? Does that materially reduce the ease of recovery in the event of a default?
And I wonder what the rationale might be behind it not being part of the GBBA?
I only put 10-15% of my AC funds into MLIA, the rest into fire'n'forget GBBA and (now) 30DAA, but interested in MLIA workings even so.
Newbie-ish questions, I'm sure - but I await elucidation.
D
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jonah
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Post by jonah on May 30, 2016 18:39:25 GMT
Just looking for a home for a bit of cash and I notice that there is still over £420K of #250 ( T******** I*******) available at 8.5% Is there some particular reason why this seems to be relatively unattractive, even while there is a bit of a drought? I get that the LTV of 54% is set against the target shares of the acquisition, rather than the holding company, but is that the only reason for the relatively low take up? Does that materially reduce the ease of recovery in the event of a default? And I wonder what the rationale might be behind it not being part of the GBBA? I only put 10-15% of my AC funds into MLIA, the rest into fire'n'forget GBBA and (now) 30DAA, but interested in MLIA workings even so. Newbie-ish questions, I'm sure - but I await elucidation. D GBBA needs to have physical I.e. Property as security.
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dermot
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Post by dermot on May 30, 2016 18:50:04 GMT
GBBA needs to have physical I.e. Property as security. Ah, it was a simple question then. Thanks. And is that lack of physical security behind the less than 100% take up, do you suppose? D
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registerme
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Post by registerme on May 30, 2016 19:31:34 GMT
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