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Post by Ton ⓉⓞⓃ on Aug 21, 2017 8:27:11 GMT
In principle, yes, eventually ... From the AC website:- The Provision Fund is designed to cover; Payment delays of interest from a borrower where that sum arrives later than expected Shortfalls in interest received from a borrower Any possible capital losses if a loan defaults and the security when sold does not cover the loan balance remaining These two snippets confuse me though:- The GBBA offers a target, capped interest rate for investors of 7.00% gross per annum (before tax and any loan losses). Annualised projected return after expected losses for the GBBA is currently 7.00% gross I read it as a very clever set of "get outs" if things go very seriously wrong beyond what's expected, but in the main you'll get 7% & your Capital.
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SteveT
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Post by SteveT on Aug 21, 2017 8:42:01 GMT
Not that I know of, although the total accrued interest figure on your Dashboard will show you if you only have GBBA holdings. The "Your Loans" view shows accrued interest but only for MLIA holdings. Thanks very helpful. I have just added that to my dashboard. Is this figure the accruing interest for late loans (for whatever reason) or does it also include interest on performing loans that just haven't been paid yet? Both
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david42
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Post by david42 on Aug 21, 2017 9:12:33 GMT
Thanks very helpful. I have just added that to my dashboard. Is this figure the accruing interest for late loans (for whatever reason) or does it also include interest on performing loans that just haven't been paid yet? Both Thanks SteveT. I have also just added the accrued interest to my dashboard. My accrued interest is small, so it cannot include the monthly accrued interest from loans in the QAA account where I have a lot of money.
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jlend
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Post by jlend on Aug 21, 2017 9:21:52 GMT
Thanks SteveT . I have also just added the accrued interest to my dashboard. My accrued interest is small, so it cannot include the monthly accrued interest from loans in the QAA account where I have a lot of money. It's a shame you can't click on a link to see a breakdown. It's a 4 figure amount in my case all non mlia loans
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SteveT
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Post by SteveT on Aug 21, 2017 9:23:30 GMT
Thanks SteveT . I have also just added the accrued interest to my dashboard. My accrued interest is small, so it cannot include the monthly accrued interest from loans in the QAA account where I have a lot of money. Interesting. I don't know why QAA (and presumably therefore the 30DAA) holdings would not be included in Total Accrued Interest, but I've never had enough in there to notice. Perhaps chris can explain.
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Post by chris on Aug 21, 2017 10:08:10 GMT
Thanks SteveT . I have also just added the accrued interest to my dashboard. My accrued interest is small, so it cannot include the monthly accrued interest from loans in the QAA account where I have a lot of money. Interesting. I don't know why QAA (and presumably therefore the 30DAA) holdings would not be included in Total Accrued Interest, but I've never had enough in there to notice. Perhaps chris can explain. It's somewhat expensive to calculate with the data structure in its current form, as it's accurate to the second and across a lot of loans, and there have been higher priorities for the IT team than finding a cunning way of calculating / caching that data. Technically it updates each second as well as opposed to the other figures which are based on midnight to midnight so only update each day. It's on the to do list.
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ashtondav
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Post by ashtondav on Aug 21, 2017 12:11:34 GMT
The bigger question is how long does it take to escape from the GBBA. Selling up I got back 85% quickly. The remaining 15% is stuck in junk loans that as AC doesn't ever seem to declare a loss, then the PF never comes into play. Well that's just as bad as for my money in non securitised loans. So despite AC lending on assets AND having a PF, you're effectively in the same, or worse, position as on any other site as AC never declares a default. Surely AC then sell the asset? Or is the 7% even with the non performing loans that aren't PF compensated. So was the interest on your 85% equal to 7% on the 100%? Thats almost Kafkaesque in its lunacy, so I'm not putting money into AC just yet.
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jlend
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Post by jlend on Aug 21, 2017 12:26:48 GMT
Do you get 7 percent interest on the remaining loans? In principle, yes, eventually ... Thanks So for the non performing loans we may have to wait several years for the PF to pay the interest?
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ashtondav
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Post by ashtondav on Aug 21, 2017 12:40:07 GMT
Surely, in most cases, it is simply the sale of the asset that will repay capital and interest. So allowing for prattling around, say 12 months after the first missed payment?
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
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Post by skippyonspeed on Aug 21, 2017 17:05:11 GMT
To answer your original question.....I would guess about 2 furlongs.......after all this is Number Wang!!!  |
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rogerbu
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Post by rogerbu on Aug 22, 2017 10:14:31 GMT
Well that's just as bad as for my money in non securitised loans. So despite AC lending on assets AND having a PF, you're effectively in the same, or worse, position as on any other site as AC never declares a default. Surely AC then sell the asset? Or is the 7% even with the non performing loans that aren't PF compensated. So was the interest on your 85% equal to 7% on the 100%? Thats almost Kafkaesque in its lunacy, so I'm not putting money into AC just yet. Sorry. The GBBA has been much worse for me than the MLIA ever was. Real figures on AC's offer of £150 bonus if holding £2k in GBBA for a year. Invest - £2000.00 Interest during 12M period +£135.58 = 6.7% pa Bonus +£150.00 Return from exit of GBBA +1716.63 Return after 14 months + £2002.21 = 0.1% including AC's £150 bonus. Not the best investment I have made!!
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IFISAcava
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Post by IFISAcava on Aug 22, 2017 10:40:02 GMT
Well that's just as bad as for my money in non securitised loans. So despite AC lending on assets AND having a PF, you're effectively in the same, or worse, position as on any other site as AC never declares a default. Surely AC then sell the asset? Or is the 7% even with the non performing loans that aren't PF compensated. So was the interest on your 85% equal to 7% on the 100%? Thats almost Kafkaesque in its lunacy, so I'm not putting money into AC just yet. Sorry. The GBBA has been much worse for me than the MLIA ever was. Real figures on AC's offer of £150 bonus if holding £2k in GBBA for a year. Invest - £2000.00 Interest during 12M period +£135.58 = 6.7% pa Bonus +£150.00 Return from exit of GBBA +1716.63 Return after 14 months + £2002.21 = 0.1% including AC's £150 bonus. Not the best investment I have made!! except that with GBBA you will eventually get the rest back (via late repayment, sale of security, or provision fund), capital plus accruing interest (although I am not sure of exact terms on the latter), you just don't know when. That's p2p, no?
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Post by roandy55 on Aug 23, 2017 16:41:32 GMT
As a complete newbie to p2p, I have just taken the plunge and opened a GBBA account with AC. It's only been a couple of days but my first allocation has been made, for the princely sum of 5p. Whilst I appreciate the idea with automated lending is to spread the risk over multiple loans, I must say I didn't really imagine it would be quite this thin. I'm beginning to think it may take longer to become fully invested than I first thought.
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ashtondav
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Post by ashtondav on Aug 23, 2017 17:36:49 GMT
I can't understand the diversification, or lack of diversification in GBBA. The blurb says if they're five loans available then you get 20% diversification. If there's 100 loans available you get 1% diversification. That's just a little too random for me. It would be ok if the PF paid out after six months of no repayments, or 12 months of no repayments - but it doesn't. It all seems a bit smoke and mirrors to me.
Why the hell cant we be told, when we log in to GBBA how much diversification is or isn't on offer? I really like the asset backing aspect of this platform but it's all so vague - unless you lend manually when it's pretty clear cut.
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Post by albermarle on Aug 23, 2017 17:46:49 GMT
As a complete newbie to p2p, I have just taken the plunge and opened a GBBA account with AC. It's only been a couple of days but my first allocation has been made, for the princely sum of 5p. Whilst I appreciate the idea with automated lending is to spread the risk over multiple loans, I must say I didn't really imagine it would be quite this thin. I'm beginning to think it may take longer to become fully invested than I first thought. As a newbie myself to any asset/business/property P2P lending a few months ago, I also invested in the GBBA. After 10 days or so, only 50% of my modest investment was lent. So it made me think about how long it might take to get out, especially in difficult economic conditions. Also having looked on this forum ,the 'mysteries' behind how these black box accounts work put me off as well. So I withdrew the money and invested it manually in the MLIA account instead- so far is going OK , except for the growing proportion of pure property related loans makes me a bit nervous.
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