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Post by elephantrosie on Jul 4, 2017 21:39:05 GMT
Hello gurus,
I would like to invest more on AC, but still learning how to choose loans. i am rather cautious with loans on AC, as it seemed to have more defaults (least in my eyes).
I occasionally went through defaulted loans and try to see what signs i could see from it, so as to learn from previous defaults.
any words of wisdoms to pass to this newbie me?
thanks.
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bg
Member of DD Central
Posts: 1,368 
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Post by bg on Jul 4, 2017 21:47:46 GMT
Hello gurus, I would like to invest more on AC, but still learning how to choose loans. i am rather cautious with loans on AC, as it seemed to have more defaults (least in my eyes). I occasionally went through defaulted loans and try to see what signs i could see from it, so as to learn from previous defaults. any words of wisdoms to pass to this newbie me? thanks. Yes. I would say that in terms of loan quality, handling of delinquent loans and communications AC is the best platform out there (although that's not to say there aren't things that could be done better). Dont be fooled by other platforms where everything looks like a bed of roses when in fact there are some loans that haven't made a payment in years. AC are very good at marking monitoring events at the first sign of trouble whereas other platforms try and kick the can down the road praying for a resolution. Lendy for example was lots of people's darling just a few months ago - how things change so quickly.
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Post by elephantrosie on Jul 4, 2017 22:09:50 GMT
thanks. if borrowers havent made payment for monthssss, how do lenders get their interests?
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Post by df on Jul 5, 2017 0:20:34 GMT
Hello gurus, I would like to invest more on AC, but still learning how to choose loans. i am rather cautious with loans on AC, as it seemed to have more defaults (least in my eyes). I occasionally went through defaulted loans and try to see what signs i could see from it, so as to learn from previous defaults. any words of wisdoms to pass to this newbie me? thanks. First of all, you have to accept that if you invest through any p2p platform your capital is at risk. Some of them carry more risk - some less. There are many platforms that are far more riskier than AC. I wouldn't spend to much time and energy on researching AC's default portfolio. Their recovery rate is good. If you avoid MILA, your investments are covered by provision fund. So, unless everything goes completely wrong, you won't loose your money. You should also consider how safe is the platform (how likely is it to collapse) - I don't think AC is the one to worry about.
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bg
Member of DD Central
Posts: 1,368
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Post by bg on Jul 5, 2017 6:53:34 GMT
thanks. if borrowers havent made payment for monthssss, how do lenders get their interests? They don't
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Post by oldnick on Jul 5, 2017 7:22:07 GMT
It's been mentioned many times before, and will be many times in the future - this type of investment is not backed by government deposit guarantee, so all interest and all capital is at risk of total loss if your borrower cannot or will not repay you. The fact that this sector still exists despite that risk is an indication, in the minds of those lending, that the risk is containable and the expected returns are better than other deposit schemes. It's only by reading the posts on this forum over time that you will be able to decide which platforms and which levels of return suit your risk appetite. Don't rush in, and don't invest money you cannot afford to lose.
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Post by lynnanthony on Jul 5, 2017 7:30:19 GMT
Hello gurus, I would like to invest more on AC, but still learning how to choose loans. i am rather cautious with loans on AC, as it seemed to have more defaults (least in my eyes). I occasionally went through defaulted loans and try to see what signs i could see from it, so as to learn from previous defaults. any words of wisdoms to pass to this newbie me? thanks. More defaults than what? Other P2P sites? Which sites are you comparing to?
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Post by davee39 on Jul 5, 2017 8:53:13 GMT
The 'browse loans' option displays all problem loans to anyone logged in. This is not always the case elsewhere.
One observation which applies to most property lending platforms is that these loans rarely repay exactly on time. There always seems to be a delay with sales or refinancing. Assetz has a good track record of dealing with this. I have no interest in due diligence and stick with the automated package accounts.
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Post by stuartassetzcapital on Jul 5, 2017 11:01:09 GMT
Thanks everyone, its certainly true that loans can sometimes not pay back on time although the quality of the transaction and the principal make a big difference here. We have a very strong recoveries team if things actually default but as has been pointed out above, we are extremely sharp in flagging any monitoring issues along the way. These are normal and could be late accounts, late payments, a profit that is lower for a business this year than it should be etc but they are still flagged where important in order to give fair notice to new lenders that there could be or has been an issue on the loan when they choose to invest - that's treating customers fairly (or TCF) and the FCA has a hard line on that unsurprisingly.So suppressing loan problems makes the loan book look better and vice versa but only the latter is compliant and fair. That's why we do it and yes we know that can worry people a bit sometimes but we must do that and this is an investment not a savings account and yes capital is at risk but there are things that can mitigate that risk and we have a lot of skills in that area. Hope that helps.
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registerme
Member of DD Central
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Post by registerme on Jul 5, 2017 11:28:59 GMT
Thanks everyone, its certainly true that loans can sometimes not pay back on time although the quality of the transaction and the principal make a big difference here. We have a very strong recoveries team if things actually default but as has been pointed out above, we are extremely sharp in flagging any monitoring issues along the way. These are normal and could be late accounts, late payments, a profit that is lower for a business this year than it should be etc but they are still flagged where important in order to give fair notice to new lenders that there could be or has been an issue on the loan when they choose to invest - that's treating customers fairly (or TCF) and the FCA has a hard line on that unsurprisingly.So suppressing loan problems makes the loan book look better and vice versa but only the latter is compliant and fair. That's why we do it and yes we know that can worry people a bit sometimes but we must do that and this is an investment not a savings account and yes capital is at risk but there are things that can mitigate that risk and we have a lot of skills in that area. Hope that helps. imho the service AC provide in this space is without compare. The one thing I think would improve it is if lenders were emailed when a loan comment was added. At the moment you can check on the site for "last updated", but is it really too much to ask that we get emailed when loans we are in get updated?
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Post by stuartassetzcapital on Jul 5, 2017 11:31:17 GMT
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Post by chris on Jul 5, 2017 11:32:21 GMT
Perhaps if it was opt in. Don't want to spam the unsuspecting.
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Post by bracknellboy on Jul 5, 2017 11:39:00 GMT
Perhaps if it was opt in. Don't want to spam the unsuspecting. And please, selectable BY ACCOUNT and AT THE ACCOUNT LEVEL (not by loan). I do want to know about MLIA account holdings, I /may/ want to hear about GEIA account (probably less diversification/more impact than say GBBA), I DO NOT want to hear about loans going bad in any of the rest of the alphabet soup of holdings (should I have them) - even if I am still asked to vote on them without knowing how much I hold of them :-)
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star dust
Member of DD Central
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Post by star dust on Jul 5, 2017 11:39:01 GMT
Perhaps if it was opt in. Don't want to spam the unsuspecting. Opt in out by account might be best. Presumably some of the 'packaged' account holders might wonder what it's all about. As an MLIA account holder I'd certainly appreciate it it though. X-posted with bracknellboy - great minds n all  - at least I read your posts bracknellboy 
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Post by Deleted on Jul 5, 2017 16:09:52 GMT
Yes. I would say that in terms of loan quality, handling of delinquent loans and communications AC is the best platform out there (although that's not to say there aren't things that could be done better). Dont be fooled by other platforms where everything looks like a bed of roses when in fact there are some loans that haven't made a payment in years. AC are very good at marking monitoring events at the first sign of trouble whereas other platforms try and kick the can down the road praying for a resolution. Lendy for example was lots of people's darling just a few months ago - how things change so quickly. While I wouldn't go so far as to fully agree with bg's comments, it is fair to say that AC have done a good job in turning around their business in the past 12 months. In many ways the loans they now offer are very different from the previous opportunities and the whole borrower relationship thing has been pulled up tight. Kudos to the Director involved (andrew?) I also think that reducing the number of IT changes has given the site time to settle down and for customers to become more comfortable (Chris?). So a better quality loan book (last 12 months)? Yes. But of course this means that looking at old >12 month loan defaults is looking at "old AC", I'd focus on the new stuff for now until you are comfortable with the process. Better comms? Certainly they do a good job in managing defaults and asking us for our opinions. But the comms per loan is still weak with far too many "we will get back to you by the end of May" and nothing new comes through the system for May and June. I just recently did a review and this element on my loans and it is just frustratingly poor. Rates; well with the better quality loan book comes a poorer gross rate. The arguement is that the net rate will be better... could be. Competition, certainly there are a few similar portals who have problems managing and communicating the order book (I exclude FC which is out on a limb that I would not like to go to). I suspect the jury is still out of the room on comparing AC/FS/Lendy None are really very good, but I suspect that is as much down to budgets and resources. AC's business model is certainly a more sophisticated than the other two with some seriously good thinking from the board to maximise the potential cash for loans at their command, but is that enough of a differentiator? Only time will tell. I would take time to review the offering of MT/COL/ALbrite, of these I think MT is the brightest light and well worth a serious look at. COL seems to struggle but it is young, while Albrite offers very different sorts of loans and probably not a place to start. All portals, at the moment, are struggling with too many property loans and little divergence into other fields, the one that finds a new successful field will do very well for a bit.
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- at least I read your posts 