smee
Member of DD Central
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Post by smee on Apr 2, 2014 8:34:54 GMT
I have just started investing in AC and I find that there are things that I am not clear about. Can any of you regular subscribers help with some information please?
1. If a loan does not receive sufficient bids, does it get refused and bids returned?
2. What is a shadow bid that you talk about on this forum?
Sorry to be a bit thick, but I would appreciate it if someone could help. Thanks
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Apr 2, 2014 8:41:37 GMT
Thick? No way!! Best to ask the questions before you invest. All the smaller loans (say less than £150K) are funded easily. Larger loans which struggle to fill are usually backed up by underwriters in the last few days to ensure the loan goes ahead. The underwriters usually resell their share in £100 units on the aftermarket for anyone to buy. Very large loans, up to six figure sums are always backed up by underwriters, and their parts also appear (as three are now) on the after market. If a loan does fail to fill, money is returned to your account when the auction is pulled out. This sometimes happens when adverse information appears during an auction, or an auction needs to be deferred. Shadow bid facility is offered to reliable investors who already have £10K (I think) invested in AC. You will need to email AC directly to arrange this*. This means you can bid now and pay later, shortly before the loan is drawn down by the borrower. Anyone who abuses the privilege is soon removed from the list! *see Chris's post below  |
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Post by batchoy on Apr 2, 2014 8:45:20 GMT
I have just started investing in AC and I find that there are things that I am not clear about. Can any of you regular subscribers help with some information please? 1. If a loan does not receive sufficient bids, does it get refused and bids returned? 2. What is a shadow bid that you talk about on this forum? Sorry to be a bit thick, but I would appreciate it if someone could help. Thanks 1. Yes to both, but more typically underwriters are asked to step in, the auction completes and the the underwriters place their parts of the loan on the AM 3. If you have a good track record with AC and have invested the appropriate amount, you can become part of the lender panel, this gives you shadow bidding rights. Shadow bids are bid on account so with in the limit given you can place bids with out having the cash available. These bids then have to be settled prior to draw down.
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Post by chris on Apr 2, 2014 8:46:34 GMT
smee - welcome to the site! If you need any specific help feel free to PM me or Dominic and we'll do our best to help. You can also speak to Dom ( Dominic) on 0161 482 7528 or Martin on 0161 482 7531 and they'll guide you through the platform and answer any questions you may have.
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Post by Ton ⓉⓞⓃ on Apr 2, 2014 8:47:58 GMT
I have just started investing in AC and I find that there are things that I am not clear about. Can any of you regular subscribers help with some information please? 1. If a loan does not receive sufficient bids, does it get refused and bids returned? 2. What is a shadow bid that you talk about on this forum? Sorry to be a bit thick, but I would appreciate it if someone could help. Thanks Hi and Welcome, I'm just another Lender like you, but, 1. All loans get to pass the finish line, normally if the proposal is for 250k Lenders will probably get there, but if not AC bring in their pet Underwriters (U/W appear green in the horseshoe-Graph thingy-mejig) to fill it up. Later on the U/Wer off load that's why Hackney, Ipswich etc are on the front page below below those on offer. 2. Shadow Accounts and bids are for big Lenders, that's not me, maybe someone else can help you here, but I'm guessing you don't have a shadow account... IN EDIT. Talk about crossed posts
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smee
Member of DD Central
Posts: 84
Likes: 50
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Post by smee on Apr 2, 2014 9:07:04 GMT
Thanks to everybody who's responded. Your replies were a great help, and I now understand. I'm grateful for all your very clear explanations.
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Post by oldnick on Apr 2, 2014 17:39:49 GMT
Welcome to the forum smee. You've stumbled (or where you pushed?) on an invaluable source of broad experience about p2p and p2b. Keep the questions coming, as none are too simple that they will be ignored - you'll only be asking something that others were too timid to post about.
We're generally a friendly bunch, with only the occaisional spleen vented at borrowers who stretch the meaning of borrowing.
On that point, remember the forum rules about naming borrowers with a sprinkling of asterisks so only people who've registered with that p2p can guess who they are.
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