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Post by chielamangus on Jun 7, 2017 20:21:19 GMT
Why would anyone put over a million into one loan? I just thought it might be something to do with the GBBA/QAA, and it was AC redeploying. Whoever it was, it's stupid to dump that amount on the market in one go.
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Brainer
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Post by Brainer on Jun 8, 2017 14:05:51 GMT
My GBBA sold out a few chunks of this, presumably it will have done the same for others and that'll be where the 1M came from. At a guess, I would say it will now be a large part of the new PSIA account.
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Post by chielamangus on Jun 8, 2017 19:10:06 GMT
Your investor has only minimised the risk if the loan parts actually sell. By dumping this quantity, the chances of selling are much reduced. I notice another loan (#312) is also suddenly displaying massive SM availability. I think the previous response is about right - it is AC off loading all its holdings of particular loans either because they no longer meet their criteria for the GBBA or QAA accounts, or -shudder the thought - they know something we don't. I have a feeling the latter would bring down the wrath of the financial gods.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jun 8, 2017 19:20:58 GMT
Your investor has only minimised the risk if the loan parts actually sell. By dumping this quantity, the chances of selling are much reduced. I notice another loan (#312) is also suddenly displaying massive SM availability. I think the previous response is about right - it is AC off loading all its holdings of particular loans either because they no longer meet their criteria for the GBBA or QAA accounts, or -shudder the thought - they know something we don't. I have a feeling the latter would bring down the wrath of the financial gods.   You have too much faith in The Financial Gods methinks, they have been consistently caught asleep at the wheel in past guises, why would this time round be any different? When this lot is defunct, and they will be, I'm starting a book on the next grandiose name. How about The FPA - The Financial Protection Authority?
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Post by chielamangus on Jun 8, 2017 19:23:15 GMT
Did I say the financial gods would actually do anything effective?
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jonah
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Post by jonah on Jun 8, 2017 21:27:26 GMT
Why would anyone put over a million into one loan? I just thought it might be something to do with the GBBA/QAA, and it was AC redeploying. Whoever it was, it's stupid to dump that amount on the market in one go. 95% sure this is the GBBA selling out. I assume that the tweak to the loan resulted in a change in LTV which means it's no longer eligible and therefore it needs to sell the parts off. My GBBA has sold some off. 391 is also being sold from the GBBA though... no idea why!
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dermot
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Post by dermot on Jun 9, 2017 10:46:46 GMT
Why would anyone put over a million into one loan? I just thought it might be something to do with the GBBA/QAA, and it was AC redeploying. Whoever it was, it's stupid to dump that amount on the market in one go. 95% sure this is the GBBA selling out. I assume that the tweak to the loan resulted in a change in LTV which means it's no longer eligible and therefore it needs to sell the parts off. My GBBA has sold some off. 391 is also being sold from the GBBA though... no idea why! I'm seeing lots of small chunks of 331 being sold out of my GBBA account too ...
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happy
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Post by happy on Jun 9, 2017 13:05:39 GMT
Why would anyone put over a million into one loan? I just thought it might be something to do with the GBBA/QAA, and it was AC redeploying. Whoever it was, it's stupid to dump that amount on the market in one go. 95% sure this is the GBBA selling out. I assume that the tweak to the loan resulted in a change in LTV which means it's no longer eligible and therefore it needs to sell the parts off. My GBBA has sold some off. 391 is also being sold from the GBBA though... no idea why! likewise I have had sales of #331 and all of my small holding in #391 as well. #331 is residential first charge at 61% LTV so I cannot see why this should no still be OK in the GBBA and #391 is first charge residential at 33.5% so if that doesn't make it qualify then I don't know what would. Interestingly, the system is not withdrawing the repayments as per my instructions but keeping it in the GBBA and buying into other loans where it can Thinking about this some more as I typed the info above I think I know what is going on here......maybe the new PSIA will only invest in pure property loan, i.e. property investment and development so not loans to a business secured against property etc. Both these loans are pure property development loans and perhaps the GBBA inclusion criteria have been tightened to restrict these loans thus releasing them to the SM and to new investors in the PSIA (which is what AC hope for I'm sure) #331 paying at 12% or a few months should get a few £s in the 5x PSIA PF for starters  Edit, reading some more this is not the case it seems, PSIA can also lend to businesses that have the loan secured against property or land as their primary security, well that's about 90% of the loan book isn't is? So where does the GBBA go then, anyone want to offer odds on GBBA being closed to new investment anytime soon?
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agent69
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Post by agent69 on Jun 9, 2017 15:20:11 GMT
Sell from the GBBA at 7% and buy back in the MLIA at 12%?
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jonah
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Post by jonah on Jun 9, 2017 15:28:49 GMT
Maybe happy a loan can only be eligible for one of the three packaged accounts. By making 331 (and others ?) into the new PSIA it 'falls out of' being eligible for GBBA? |
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happy
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Post by happy on Jun 9, 2017 20:05:13 GMT
Sounds reasonable jonah If the new PSIA account is geared to lower risk (I assume risk of capital loss rather than risk of default) it is likely to have a lower LTV ceiling than the GBBA. My GBBA holdings go all the way to 75% LTV but with 50% of loans by value under 60% LTV and almost 25% under 50% LTV, so not a bad spread across the LTV range. I can see the GBBA taking more of the loans at the higher end of the LTV scale over time once the PSIA starts to take off and it sucks the lower LTV loan up. Won't this surely lead to a more risky GBBA? EDIT: #331 is 62.9% LTV so if this loan is being pushed out of the GBBA to feed the PSIA then the ceiling is at least that high, this represents just over 55% of my current GBBA loans (by number and value) that could be targets for the PSIA. Should GBBA investors be concerned about this? |
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duck
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Post by duck on Jun 10, 2017 16:42:32 GMT
My wife's GBBA has been selling off 331, 312, 325 & 391 with 391 now showing £0.00 invested.
For the first time in a couple of months the account is not now fully invested. When buying has taken place it has mainly been 441 which for diversification of her account is not good since this now shows 18.98% in this single loan.
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ilmoro
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Post by ilmoro on Jun 12, 2017 19:44:33 GMT
#331 is selling out of GBBA becuae it doesnt meet the criteria anymore with the recent tranche drawdown (see Q&A). The loan page shows the GDTV not the LTV.
It is possibly that the other loans mentioned fall into the same category, though #325 might be becuase the rate has dropped to 7.,25%
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sqh
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Post by sqh on Jun 13, 2017 0:12:26 GMT
#331 is selling out of GBBA becuae it doesnt meet the criteria anymore with the recent tranche drawdown (see Q&A). The loan page shows the GDTV not the LTV. It is possibly that the other loans mentioned fall into the same category, though #325 might be becuase the rate has dropped to 7.,25% It appears the LTV has risen above 75%, because Loan #331 has relinquished it's security of plots 1,3 & 8 to new loan #477. I don't think lenders voted for this, but AC did make the vote fairly convoluted, by suggesting that a 2nd charge can leapfrog a 1st charge, as long as the loan isn't in default.
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jjc
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Post by jjc on Jun 13, 2017 2:26:22 GMT
It appears the LTV has risen above 75%, because Loan #331 has relinquished it's security of plots 1,3 & 8 to new loan #477. I don't think lenders voted for this, but AC did make the vote fairly convoluted, by suggesting that a 2nd charge can leapfrog a 1st charge, as long as the loan isn't in default.
I think the jumping 2nd charge kermit was raised in the pink pages but lenders, in their good wisdom, seemed happy with it. Unlikely to be an issue, but perhaps the relinquished security should have been explained in the lender vote. (With the benefit of hindsight we now know the likely reason for this unusual configuration was the borrower wanting, or perhaps already having contractual agreement for, a much lower rate on 477). Talking of happy , & the numerous aquatic creatures we seem to have sploshing around here duck agent69 jonah , dermot the dolphin have you noticed sizeable differences in the chunks of 331 your GBBA accounts are selling off eg bigger initially smaller now (& are they still selling 331 down?) Reason I ask is because I would have expected the GBBA, as soon as 331 stopped meeting the criteria, to sell its units off to the QAA pot (where a lot of money has come in over the last month) – makes sense for AC’s bottom line. Only subsequently would the QAA then (if it had had its full of 331, I think it was holding a lot of it already btw) put the units up on the market. That would explain the sudden big increase in 331 units all made available in one fell swoop. Also £1.1m of one loan is a lot for the GBBA to be holding (imo), particularly when it could be holding it in the significantly more profitable QAA. There could ofcourse be other issues playing a part, eg 331’s short legs & possibly 30D Promo money being held in a separate pot to QAA. Anyway just curious on how things have been working, as we can expect more of these types of movements in future from the IA fund management algorithms, which can impact individual loan liquidity very quickly. Tagging chielamangus who first spotted this
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