gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
Posts: 256 
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Post by gibmike on Feb 27, 2017 22:55:17 GMT
I currently have a decent investment with AC currently earning just under 11% which I am more than happy with.
Recently I have been noticing alot of their loans coming in at 7-8% which is a good few points below what I am happy with. LendInvest who I also had a decent amount in has dropped from 7-8% towards the 6% (although this has changed in the last few weeks and has improved to 7%).
I appreciate that the market is becoming more competitive and that interest rates are at a very low rate at the moment but I am not interested 8% as I can get private insured bonds at 12%.
Is anyone at AC or a member of AC predicting any upturn in the next 12 months?
Mike
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Post by jevans4949 on Feb 28, 2017 1:33:30 GMT
Unlikely until central banks start to pull their funny money out of the banking system. Or maybe the Euro crashes?
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greatmarko
Member of DD Central
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Post by greatmarko on Mar 31, 2017 15:54:11 GMT
It really does make the MLIA a whole lot less attractive than it used to be! Why anyone would invest in loans at 6-7% through the MLIA with no PF protection, when they can instead put their money into the GBBA/GEIA instead at 7% and have the protection of a discretionary PF, is beyond me!  |
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rookey123
Member of DD Central
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Post by rookey123 on Mar 31, 2017 17:37:59 GMT
I don't know, I like to pick and choose my own loans and make my own credit decision on sector/location/asset type etc. My aim would always be to beat the default average. I would also say that the PF has never been tested in a real life stress scenario and while useful to have will be blown away in any serious economic crisis.
If I lose money at least it will be having made my own credit decisions which while still expensive will make it easier to live with.
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Post by lynnanthony on Apr 1, 2017 7:20:18 GMT
Curiously there are quite a lot of the higher interest loans showing in the "Units available" tab this morning. Many more than the usual suspects.
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iren
Member of DD Central
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Post by iren on Apr 1, 2017 14:03:29 GMT
Yes, I've just added cash to take advantage of the opportunities showing in "units available", and am doing even better than I thought: picking up large parts of previously scarce higher rate loans that did not even show in the table.
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gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
Posts: 256
Likes: 160
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Post by gibmike on Apr 12, 2017 19:54:10 GMT
I have been swapping some of the loans around and have managed to get to 11.1% from 10.8% thanks to the HNWI dumping everything on the MLIA.
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Post by df on Apr 12, 2017 23:23:44 GMT
"Are we going to see 10%+ loans in the near future?" - I don't think so, not on AC's upcoming list. 10%+ is less and less competitive - interest rates are falling across the board.
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Post by GSV3MIaC on Apr 13, 2017 6:50:25 GMT
There are lots of them, just not on this platform. You just missed 14% (ok, a second charge) on Ablrate, and there is 10-12% all over the place .. just not here ( too much QAA cash?).
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gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
Posts: 256
Likes: 160
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Post by gibmike on Apr 13, 2017 7:03:19 GMT
I recently joined Ablrate and also Property Crowd, just waiting for some LendInvest loans to clear down before moving onto those platforms.
I was thinking longer term, are we going to be seeing 8% average which in turn pushes people towards GEIA and GBBA.
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mikes1531
Member of DD Central
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Post by mikes1531 on Apr 13, 2017 15:45:48 GMT
I was thinking longer term, are we going to be seeing 8% average which in turn pushes people towards GEIA and GBBA. A lot depends on whether the GEIA/GBBA continue to pay 7%. There was a time -- last year, IIRC -- when people were expecting AC to release a Mark II version of these accounts that paid less than 7%. But that was at a time when AC loan origination was low relative to demand, and money invested in those accounts took a long time to be deployed. In those circumstances, it wouldn't have been unreasonable for AC to reduce the rates on those accounts in order to reduce the demand and increase the number of loans that might qualify for inclusion in those accounts. That situation seems to have passed. AC loan origination seems to be up, there's a long list of loans wanting funding, and money invested in those accounts is being deployed reasonably quickly. In the current situation, ISTM that reducing rates on those accounts wouldn't be a sensible thing for AC to do.
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jonah
Member of DD Central
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Post by jonah on Apr 13, 2017 17:41:18 GMT
I suspect mk2 GBBA will come with isa and the potential wall of cash that will bring. Hoping I'm wrong though.
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Apr 13, 2017 17:41:48 GMT
I assume that they will be reducing rates for lenders to whatever they can get away with. Good for their shareholders.
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Post by df on Apr 13, 2017 23:45:36 GMT
There are lots of them, just not on this platform. You just missed 14% (ok, a second charge) on Ablrate, and there is 10-12% all over the place .. just not here ( too much QAA cash?). I've missed this one. There was an e-mail telling about it and I was expecting another one to tell that it is available for investment, but the next one I got was to inform that 14%-2nd charge part of it is fully funded and encouraging to invest in 12% bullet point one to complete funding... The previous "scrapping aircraft" was at 10% and may be Ablrate will be able to keep 10%+ flow going throughout 2017, but at about 2 new loans per month rate they are not likely to saturate the market. I think the reality is - 8/% is a norm at the moment. The rates are falling across lending industry. We might see an occasional new 10% loan on AC, but I doubt there will be many of of those in near future. You can still get up to 20% on 'micro-loan' with ReBS, but I'm not sure how sustainable that is, how are they going to compete with other SME funding platforms who offer much better rates for borrowers.
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Aug 11, 2017 11:19:37 GMT
Well, there's a 12% one today, to an ex-pat, security 2nd charge on a flat in London, but Assetz have taken the decision to list it as drawing down today, but provide no documents for us to decide what risks we will be taking.
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