skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787 
Likes: 424
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Post by skippyonspeed on Sept 6, 2017 12:44:31 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. Well done!! Long live MLIA, the original and best account on AC
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Post by roandy55 on Sept 6, 2017 16:17:01 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. I see where you are coming from. The dealing in pennies, and the time it is likely to take to become fully invested are not things I anticipated when I signed up. However I don't really feel confident enough to undertake MLIA and have now swept my idle funds into QAA where I am still earning a better rate of interest than previously in my bank current account. As a newbie I am adopting something of a softly softly approach, and it will certainly be interesting if nothing else to see how this pans out!
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Post by reandymator on Sept 7, 2017 6:50:36 GMT
Pennies would be nice.... In the last three days, I got 0.3attopence.
That would be 3x10^-19p, or £0.000000000000000000003
With the uninvested funds in my GBBA (less than £100), at that rate, it will take a billion times longer than the universe has existed to get fully invested, even ignoring compound interest!
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ashtondav
Member of DD Central
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Post by ashtondav on Sept 7, 2017 9:07:34 GMT
Deposited £500 + into GBBA on 26 August.
So far I've lent £1.81.
Not impressed!
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Post by roandy55 on Sept 7, 2017 9:23:20 GMT
If indeed AC is awash with investor funds and struggling with the flow of deals in order to to meet investor demand, I suspect the majority would see this as a positive and accept delays in becoming invested over any lowering of standards or lending criteria on the part of AC.
Another positive presumably being that this should in theory make it easier for investors to liquidate funds from their higher paying accounts if and when required?
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ashtondav
Member of DD Central
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Post by ashtondav on Sept 7, 2017 10:14:34 GMT
Yes, very positive. I'm delighted I can liquidate my £1.81 quickly!
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787
Likes: 424
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Post by skippyonspeed on Sept 7, 2017 10:19:25 GMT
Deposited £500 + into GBBA on 26 August. So far I've lent £1.81. Not impressed! I suggest you consider switching to MLIA, there are currently circa 50 loans available. You could put a buy order of £10 on each one. I believe it takes about 2 hours to complete a cycle of trade matches......so I suggest you increase your buy orders after the 1st run to allow for any interest payments, as AC loans don't just pay at the EOM in MLIA. This will mean any loan interest/principal payments will automatically be reinvested in any loan you have a buy order with. Not only would your money probably be fully invested by the end of the day, you would be getting between 7&10% spread over 50 loans. I know there is no PF, but AC's record is pretty good as far as defauts are concerned and their recovery record is pretty good too. Also, your risk would be pretty low by being spread over 50 loans...........if you want to be more choosy/safer stick to the higher no. loans and go for ones with plenty of time left. If you are concerned about re-sale, avoid loans with high amounts of availabilty I personally only consider loans >11%, so any new money takes longer to invest...........so I 'park' in a low interest one, I then slowly re-invest as higher rate loans become available.
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Mike
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Post by Mike on Sept 7, 2017 10:37:50 GMT
GBBA continues to appear broken.
Everyone trying to invest in GBBA should (I believe) be able to immediately pick up some of 312 to the value of 20% target investment.
For some reason this isn't happening, and hasn't been happening for weeks (since before 1st Sept.). Can't see any reason why it's no longer eligible for GBBA investment
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787
Likes: 424
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Post by skippyonspeed on Sept 7, 2017 10:53:37 GMT
GBBA continues to appear broken. Everyone trying to invest in GBBA should (I believe) be able to immediately pick up some of 312 to the value of 20% target investment. For some reason this isn't happening, and hasn't been happening for weeks (since before 1st Sept.). Can't see any reason why it's no longer eligible for GBBA investment I've told you a million times don't exaggerate!!!!! 
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r00lish67
Member of DD Central
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Post by r00lish67 on Sept 7, 2017 11:20:14 GMT
GBBA continues to appear broken. Everyone trying to invest in GBBA should (I believe) be able to immediately pick up some of 312 to the value of 20% target investment. For some reason this isn't happening, and hasn't been happening for weeks (since before 1st Sept.). Can't see any reason why it's no longer eligible for GBBA investment Meanwhile, in withdrawing from the GBBA over the past 2 weeks, nearly everything of mine sold almost immediately - leaving me with £200 of 312 that won't shift! 
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Mike
Member of DD Central
Posts: 651
Likes: 446
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Post by Mike on Sept 7, 2017 12:37:50 GMT
GBBA continues to appear broken. Everyone trying to invest in GBBA should (I believe) be able to immediately pick up some of 312 to the value of 20% target investment. For some reason this isn't happening, and hasn't been happening for weeks (since before 1st Sept.). Can't see any reason why it's no longer eligible for GBBA investment I've told you a million times don't exaggerate!!!!! ;) See update on loan 1st Sept - there are lots of dates before 1st September, 31st Aug. is not the only option
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ashtondav
Member of DD Central
Posts: 1,814
Likes: 1,092
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Post by ashtondav on Sept 7, 2017 15:37:27 GMT
Deposited £500 + into GBBA on 26 August. So far I've lent £1.81. Not impressed! I suggest you consider switching to MLIA, there are currently circa 50 loans available. You could put a buy order of £10 on each one. I believe it takes about 2 hours to complete a cycle of trade matches......so I suggest you increase your buy orders after the 1st run to allow for any interest payments, as AC loans don't just pay at the EOM in MLIA. This will mean any loan interest/principal payments will automatically be reinvested in any loan you have a buy order with. Not only would your money probably be fully invested by the end of the day, you would be getting between 7&10% spread over 50 loans. I know there is no PF, but AC's record is pretty good as far as defauts are concerned and their recovery record is pretty good too. Also, your risk would be pretty low by being spread over 50 loans...........if you want to be more choosy/safer stick to the higher no. loans and go for ones with plenty of time left. If you are concerned about re-sale, avoid loans with high amounts of availabilty I personally only consider loans >11%, so any new money takes longer to invest...........so I 'park' in a low interest one, I then slowly re-invest as higher rate loans become available. Many thanks. As you can see I am very new to the AC world.
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Post by stuartassetzcapital on Sept 7, 2017 17:01:30 GMT
Hi everyone. The main reason that the GBBA isn't investing quickly is that the mandate to purchase loans means that many of the currently originated loans do not pass the interest rate hurdle and therefore the GBBA cannot invest in them. We have two choices.
1. close the account and leave the PSIA open.
2. commence a new Series 2 of GBBA at a new lower rate of probably 6% or perhaps 6.5% for now.
3. open a new version of GBBA that has no provision fund and auto invests into many more loans as a result as the margin that funds the provision fund would not be required and therefore more loans would fit the new mandate.
We would be interested in votes and we could run a voting system on this to get input into our decision ?
We do apologise for the delay in investing in this account, and indeed the GEIA right now. This slow investment speed is not acceptable to us as well as yourselves.
The GEIA will be fixed with greater origination that we are expecting as a result of new work we have done. The GBBA by way of a decision on the choices above.
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787
Likes: 424
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Post by skippyonspeed on Sept 7, 2017 17:38:12 GMT
Hi everyone. The main reason that the GBBA isn't investing quickly is that the mandate to purchase loans means that many of the currently originated loans do not pass the interest rate hurdle and therefore the GBBA cannot invest in them. We have two choices. 1. close the account and leave the PSIA open. 2. commence a new Series 2 of GBBA at a new lower rate of probably 6% or perhaps 6.5% for now. 3. open a new version of GBBA that has no provision fund and auto invests into many more loans as a result as the margin that funds the provision fund would not be required and therefore more loans would fit the new mandate. We would be interested in votes and we could run a voting system on this to get input into our decision ? We do apologise for the delay in investing in this account, and indeed the GEIA right now. This slow investment speed is not acceptable to us as well as yourselves. The GEIA will be fixed with greater origination that we are expecting as a result of new work we have done. The GBBA by way of a decision on the choices above. You forgot option 4........scrap GBBA!!!!
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savernake
Member of DD Central
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Post by savernake on Sept 7, 2017 19:01:11 GMT
Hi everyone. The main reason that the GBBA isn't investing quickly is that the mandate to purchase loans means that many of the currently originated loans do not pass the interest rate hurdle and therefore the GBBA cannot invest in them. We have two choices. 1. close the account and leave the PSIA open. 2. commence a new Series 2 of GBBA at a new lower rate of probably 6% or perhaps 6.5% for now. 3. open a new version of GBBA that has no provision fund and auto invests into many more loans as a result as the margin that funds the provision fund would not be required and therefore more loans would fit the new mandate. We would be interested in votes and we could run a voting system on this to get input into our decision ? We do apologise for the delay in investing in this account, and indeed the GEIA right now. This slow investment speed is not acceptable to us as well as yourselves. The GEIA will be fixed with greater origination that we are expecting as a result of new work we have done. The GBBA by way of a decision on the choices above. As a relative newcomer to AC I have only recently opened a GBBA and was intending to make it the centrepiece of my entire P2P portfolio. This announcement comes as no surprise as it was clear there were issues getting funds invested in the account. However, it is still disappointing in view of the alternative options given. I personally wouldn't vote for options 1 and 2 above as I'm not looking to invest at below 7%. The GBBA is already at the very bottom limit of my target rate range. Moving on to option 3, I don't see the attraction of having a GBBA without the Provision fund. You would be better off investing in the same loans via the MLIA. I was happy to accept a reduced rate of interest on these loans in return for the extra protection of the PF. I may be tempted to invest if the loss of a PF was offset by an increase in the rate to reflect the increased risk. However, I would want to see the GBBA offer much better diversification than it currently does. I would hope to see something along the lines of FC's new offering which guarantees 0.5% diversification. If the GEIA is apparently going to remain in its current form, it will be a much more attractive account than GBBA2. What is there to stop everyone withdrawing their funds from GBBA and putting them into GEIA instead? I would worry about the impact a mass influx of funds into GEIA would have on its ability to get funds invested.
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