littleoldlady
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Post by littleoldlady on Nov 16, 2016 17:43:08 GMT
Well Monday came and went, Tuesday came and went. Sorry, the clarification came back to me but I was distracted and forgot to post it back here. If it ever happens then at the point a loss is crystallised that the provision fund will not cover that capital reduction will be applied proportionally across all lenders within the QAA / 30DAA. Thanks for that, but it begs the question: Will investors be told that the loan is in trouble at any point before it crystallises as a loss? If the asset has to go to auction it would seem impossible to keep it out of the public domain. On the other hand informing lenders might cause a panic exit.
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Mike
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Post by Mike on Nov 17, 2016 1:24:14 GMT
I would also like to know a similar thing: of my QAA holding how much is in suspended loans?
What use is knowing the QAA provision fund value without knowing the QAA current exposure to suspended loans?
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Post by andrewholgate on Nov 17, 2016 9:10:11 GMT
The QAA is invested in one loan that is in trouble at present. It holds £13 of that loan.
We are looking at what disclosures to make but we will make sure lenders are aware of any major impacts on the PF.
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Post by bracknellboy on Nov 17, 2016 9:33:36 GMT
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Post by andrewholgate on Nov 17, 2016 11:07:44 GMT
LOL bracknellboyI could tell you to the 40th decimal place how much of the £13 you account for? |
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Post by oldnick on Nov 17, 2016 14:07:35 GMT
The QAA is invested in one loan that is in trouble at present. It holds £13 of that loan. We are looking at what disclosures to make but we will make sure lenders are aware of any major impacts on the PF. £13 seems a rather small amount for such a relatively large fund to hold - why wasn't it more? To put the question a different way, did the QAA hold more of that loan at any stage, and if so, when was it reduced to £13? (I take you at your previous word that there is a 'Chinese wall' in place so no early advantage was taken of bad news.)
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Post by andrewholgate on Nov 17, 2016 15:07:47 GMT
Good question and one I don't have the answer to at hand oldnickWhat I can say is that QAA did not sell out of this loan in the run up to it going bad or lenders being told it was bad. We have small holdings in loans in the accounts as we have tried to diversify the risk and QAA tries to buy loan units in lots of loans when it becomes available. It is only the newer loans where there are larger holdings. But to be very clear, QAA did not sell down and will not sell down risk to other lenders knowing that there is a possible loss brewing. That simply wouldn't be fair. |
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Post by oldnick on Nov 17, 2016 16:12:51 GMT
Good question and one I don't have the answer to at hand oldnickWhat I can say is that QAA did not sell out of this loan in the run up to it going bad or lenders being told it was bad. We have small holdings in loans in the accounts as we have tried to diversify the risk and QAA tries to buy loan units in lots of loans when it becomes available. It is only the newer loans where there are larger holdings. But to be very clear, QAA did not sell down and will not sell down risk to other lenders knowing that there is a possible loss brewing. That simply wouldn't be fair. Thank you. For the record I never doubted the propriety of the operation, it just seemed odd that the QAA would suffer from the same problem as the rest of us in building up meaningful stakes in some loans, but, as you point out, it is a level playing field, so not surprising after all.
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littleoldlady
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Post by littleoldlady on Nov 17, 2016 18:21:01 GMT
Good question and one I don't have the answer to at hand oldnick What I can say is that QAA did not sell out of this loan in the run up to it going bad or lenders being told it was bad. We have small holdings in loans in the accounts as we have tried to diversify the risk and QAA tries to buy loan units in lots of loans when it becomes available. It is only the newer loans where there are larger holdings. But to be very clear, QAA did not sell down and will not sell down risk to other lenders knowing that there is a possible loss brewing. That simply wouldn't be fair. Sounds like it's a highly automated process.
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Post by chris on Nov 17, 2016 19:50:08 GMT
paul123 - the system has since been changed to automatically stop any loan paying 0% interest from being traded precisely because of that unusual circumstance.
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Mike
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Post by Mike on Nov 18, 2016 23:40:19 GMT
The QAA is invested in one loan that is in trouble at present. It holds £13 of that loan. We are looking at what disclosures to make but we will make sure lenders are aware of any major impacts on the PF. Shall we post to ask you every time a loan defaults for an update on this figure? If I uninvested from the QAA and reinvest the same day, can I avoid holding bad loan parts or might I be buying known toxic debt?
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adrianc
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Post by adrianc on Nov 19, 2016 9:19:32 GMT
The QAA is invested in one loan that is in trouble at present. It holds £13 of that loan. We are looking at what disclosures to make but we will make sure lenders are aware of any major impacts on the PF. So how come I've got just under £4 in the QAA and £32.50odd in the GBBA that simply won't withdraw?
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mikes1531
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Post by mikes1531 on Nov 19, 2016 18:34:18 GMT
The QAA is invested in one loan that is in trouble at present. It holds £13 of that loan. We are looking at what disclosures to make but we will make sure lenders are aware of any major impacts on the PF. So how come I've got just under £4 in the QAA and £32.50odd in the GBBA that simply won't withdraw? I can understand having some GBBA that won't withdraw if it's in a loan with trading suspended. But everything in the QAA is supposed to be withdrawable except when conditions aren't 'normal' -- and I wouldn't have thought that was the situation at the moment. (Will AC make an announcement whenever conditions are not 'normal' and QAA withdrawals aren't being dealt with immediately? I certainly would hope so.) If I were adrianc, I'd telephone AC and ask specifically why his £4 won't withdraw.
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Post by GSV3MIaC on Nov 19, 2016 19:47:10 GMT
I may be confused, but IIRC funds 'swept' into the QAA have to be withdrawn from whatever account they are really in? Maybe that's it (or maybe I'm mis-remembering, been a while since I looked).
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Post by andrewholgate on Nov 21, 2016 10:44:44 GMT
The QAA is invested in one loan that is in trouble at present. It holds £13 of that loan. We are looking at what disclosures to make but we will make sure lenders are aware of any major impacts on the PF. Shall we post to ask you every time a loan defaults for an update on this figure? If I uninvested from the QAA and reinvest the same day, can I avoid holding bad loan parts or might I be buying known toxic debt? When you invest in QAA you hold a fraction of the loan parts that QAA holds. It raises a good question though, should new QAA investors be prevented from holding old defaulted loans? A nice one for me to chew on.
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