happy
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Post by happy on Aug 11, 2016 6:19:47 GMT
The QAA and 30 Day accounts share a common "fund" of loan units that provide an income to support the interest payable (3.75/4.25%) and also pay into the PF as required. The rest is held in cash to provide the liquidity required for these accounts easier access capability. These are total Black Box accounts in that you cannot see the underlying investments. These 2 accounts have an investment cap set by AC that reflects the current investment capacity of the account. Once this cap is hit you cannot invest more until AC push more loan units into the underlying fund and increase the investment cap. If the cap has not been reached investment is instantaneous as it was for you.
It seems that the QAA underwrites many of ACs new loans nowadays and then progressively passes these on as newer loans come to the platform. So bottom line is you are automatically invested into a share of many/most of the more recent loans on the platform.
FYI GBBA/GEIA work differently in that you are automatically invested directly into specific qualifying loans at 7% plus you get PF protection. There is no cash fund and selling requires either another investor buying your loan units or loans being repaid. Although there is no specific cap on the GBBA/GEIA accounts if there are no qualifying loans units available to buy on the market or being sold by existing GBBA/GEIA investors then your money will wait until there is something to buy (potentially swept into the QAA earning 3.7r%)
Hope this helps.
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happy
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Post by happy on Aug 5, 2016 11:03:13 GMT
Thank for your advice and solidarity littleoldlady. I did say "for now I'm out' so I will keep a watching brief over the coming months and maybe reconsider my position on SS soon.  |
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happy
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Post by happy on Aug 5, 2016 10:26:09 GMT
I have a multiple 6 figure sum invested in 8 P2P platforms but each platform has no more than 5 figures invested and my loan sizes are typically low to mid 3 figures with a few low 4 figure loans, so you could say I am a diversification junkie! I have yet to invest in SS but have been monitoring the SS pages for over 6 months with a view to investing but I have decided it is not for me. Let me explain why......
When you are investing these relatively small amounts in each loan it is simply not feasible in time and cost terms to do in-depth due diligence or to continually monitor them. You need to rely more heavily on information provided by the platform and public information to make investment decisions. On this basis I would have to put SS in the high risk category for me but if it wasn't for this forum I would probably have invested by now.
I am super impressed with the efforts of CD etc. with the DD they undertake but my view is that SS is not really suitable for those who do not have the ability to do what you guys/girls do. Two examples recently are the Scottish Leisure Park and the potential Graveyard. These loans on the face of the initial information presented to investors looked OK but your DD exposed issues that resulted in them never coming to the market. Thank you!
So it is on this basis that despite the lure of 12%, Reluctantly for now, I'm Out!
Keep up the great work Forumites, total respect to you all. maybe one day I will succumb and join you on SS.
This is my personal view based on my own situation and experience and does not in any way constitute any advice to others or imply that SS is not a suitable investment platform for others to invest in.
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happy
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Post by happy on Aug 5, 2016 9:43:10 GMT
Fraid not happy . My GBBA had no uninvested cash. Btw I’m not saying I’m certain I have proof about anything (& indeed may be mistaken). As mentioned my concern is more for MLIA investors (which, bar a token marker, I am no longer on this loan - so have nothing to gain) on this or any other deal. Offloading from QAA to GBBA I personally consider less of an issue as both have PF’s (though a GBBA investor may prefer his money not to be invested in loans just as they go wobbly!), but QAA (or any IA) offloads to MLIA does raise questions. Also as to the how & who by levers can be pulled. We have in the past been told that the IA’s were fully automated algorithms with no outside interventions possible. I hope that’s the case, but am struggling to see it. chris presumably can explain. Edit: also the QAA/30D accounts have PF protection as well so it would make little difference if the loan units sat in QA ot GBBA. On the losses yes but on the QAA’s liquidity it might. I’m actually surprised an outside intervention would have been made in this case, if it’s for £50-100k (then again it might be more, we don’t know) of a £30m pot. There were only two sellers of #174 on the day of suspension, the larger one was a private seller who sold under half their holding in the loan at 13:33. That lender is not an underwriter nor are they an employee of Assetz Capital. Having checked them out on LinkedIn I can't see any common connections with AC staff either. The other seller sold less than £100 and likewise had no connection to the platform. I hope that satisfies you that there is categorically no insider trading or manipulation of the IAs. In this instance a private seller has sold into the IAs which should demonstrate that the GBBA was not operating with any special knowledge at that point in time. It was just a lucky sale at the right time by a private investor but with them still having a substantial investment in the loan. Thanks Chris, I never suspected any "insider" activity or diect AC intervention, more someone got wind of issues in the public domain, this is much more likely with someone with a large stake in any loans who monitors them on a daily basis.
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happy
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Post by happy on Aug 5, 2016 9:37:35 GMT
Fraid not happy . My GBBA had no uninvested cash. Btw I’m not saying I’m certain I have proof about anything (& indeed may be mistaken). As mentioned my concern is more for MLIA investors (which, bar a token marker, I am no longer on this loan - so have nothing to gain) on this or any other deal. Offloading from QAA to GBBA I personally consider less of an issue as both have PF’s (though a GBBA investor may prefer his money not to be invested in loans just as they go wobbly!), but QAA (or any IA) offloads to MLIA does raise questions. Also as to the how & who by levers can be pulled. We have in the past been told that the IA’s were fully automated algorithms with no outside interventions possible. I hope that’s the case, but am struggling to see it. chris presumably can explain. Edit: also the QAA/30D accounts have PF protection as well so it would make little difference if the loan units sat in QA ot GBBA. On the losses yes but on the QAA’s liquidity it might. I’m actually surprised an outside intervention would have been made in this case, if it’s for £50-100k (then again it might be more, we don’t know) of a £30m pot. Sounds strange why the system would just decide to sell a small amount of your QAA and invest it in the GBBA without your explicit instruction to do so. If you say you have no uninvested cash in your GBBA perhaps you received some interest/capital repayment which just happened to be in the GBBA when #174 came on the market. Like I said, if there had been an explicit sell from QAA directly invested funds you should see this in the QAA transaction history, if it was swept funds you would only see entries in the IA that the funds were directly invested in. Perhaps worth checking if you had some small repayments into your GBBA prior to the purchases. Can you confirm this for us please chris
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happy
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Post by happy on Aug 4, 2016 17:36:03 GMT
Perhaps not! it looks to me like your GBBA had uninvested cash and just made a purchase of #174 off the market and released some swept funds from the QAA to facilitate the purchase. This would be consistent with GBBA transactions you describe with nothing showing on the QAA.
This does not mean that the initial sale that put the units on the market did not come from the QAA/30D (or a MLIA investor) but I don't think your evidence proves that it did come from the QAA.
Edit: also the QAA/30D accounts have PF protection as well so it would make little difference if the loan units sat in QA ot GBBA
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happy
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Post by happy on Aug 4, 2016 16:34:57 GMT
/mod hat off Well I walk past PBL065 every month or so......... Can't do a site photo as there is a fence around the site, and no adjacent high buildings.............You just need to get yourself a smartphone, a nice long selfie stick and set the phone camera to timer and you're sorted! 
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happy
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Post by happy on Aug 4, 2016 16:20:49 GMT
Considering how few people will have noticed these transactions so far (and it will also be limited to those that open the black box) it would be interesting to see how much of this loan was traded just before the update and where it came from ..... I saw around £25k on the sm about noon-ish. So somebody got wind of this ahead of time it seems and the GBBA participants get stuck with some more of a loan they would rather not have. Security looks ok though so no worries there but a shame we won't even benefit from the default interest in the GBBA, at 13% is it?
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happy
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Post by happy on Aug 4, 2016 15:42:23 GMT
Which would be fine if we had the GBBA/GEIA diversification process that Chris promised us in the Springtime. Mind you I think The Daily Mail promised us the hottest summer in 100 years FYI I don't read The Daily Mail, the Mother-in-law does! |
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happy
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Post by happy on Aug 4, 2016 15:36:54 GMT
Likewise, perhaps a comment from AC would be helpful
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happy
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Post by happy on Aug 4, 2016 15:21:39 GMT
I also had GBBA purchases for #174 at 13:30 & 14:30 then got the capital repayment at 14:43. Perhaps someone found out about the "issues" a bit before AC officially suspended the loan and sold out in the MLIA causing the GBBA to buy up the parts. Not best pleased as it wiped out half of the capital repayment I received  Edit: both the purcheses and the capital repayment predate the suspension and email (14:39 & 14:50 respectively) |
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happy
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Post by happy on Jul 8, 2016 16:47:25 GMT
I agree on rates, FC purely for plarform diversity..... however can't imagine drilling rigs providing a solid basis for security at current oil prices |
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happy
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Post by happy on Jul 8, 2016 10:21:06 GMT
I reduced my FC holding by 50% some months ago during the ipad feeding frenzy and apart from a few "nearly done" SME loans FC for me is now purely property (don't have a bot and have better things to do with my day than sitting at home waiting for snippets of D and E loans).
I was concerned about property development exposure to a down-turn after Brexit so I have since have sold any London/SE loans over 60% LTV and only kept a few others closer to 70% that I was comfortable with. This brings my FC holding down to 1/3rd what it was and I now only reinvest interest/repayments in sub 50% property loans if I can. This seems a reasonably safe approach to protecting capital.
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happy
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Funding Circle (FC)
Greedy bot
Jun 20, 2016 10:51:14 GMT
Post by happy on Jun 20, 2016 10:51:14 GMT
I only use FC for property now and always sell on with 2 payments to go, try +.3/+.2/+.1 for a week and then if they don't sell they always disappear in minutes or hours at par. Forgot to do this with Cornwall though! Feigning Concern promise it will pay by the end of the month |
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happy
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Post by happy on Jun 20, 2016 10:39:10 GMT
Surely the tidal wave of low-cost lender capital you're now surfing (from those to whom 4% "semi-assured" sounds attractive) gives you a huge advantage over SS, MT, FS and others in that space, if you choose to deploy it. I'd much rather put substantial sums into a properly secured, well documented loan at 11% (or even 10% if it's bullet-proof) than bid blind for the latest sketchily-described SS offering at 12%, with fingers crossed that I can sell it on before the security is tested. Whoever devised the strategy behind the QAA/30DAA deserves a very large bonus indeed, but if that (unique?) competitive advantage is only leveraged for growth in the sub-£500k 7-9% sector then it will have been wasted (IMHO). It can be leveraged up in the £1-2m level but beyond that there's too much concentrated risk at the current account size and becomes a pain to sell down if our origination exceeds demand. There are a lot of things that need to be properly balanced for P2P sites to work well in a sustainable form. I have to say this is one of the most interesting, informative and well balanced threads I have seen in many a month and it has taken a very different path to it's initial topic, thanks to all contributors. What is blindingly clear to me is that behind AC there is a massive amount of planning, care, attention and above all intelligence and understanding that gives me huge confidence in this platform. They have not just gone and found a simple formula that works right now and just kept doing it regardless of any potential future risks or changes coming down the road, they are looking to adapt and develop their business model for the future. As an IT professional since the '80s I understand how technology can either drive a business to success or drags it to it's death, what I see in AC is the use of IT to create true uniques and competitive advantage in their marketplace, I don't see that anywhere else in their direct P2P competitors... Put it this way, if SS launched a GBBA style account tomorrow, at lets say 10%, I would not touch it with a very long barge pole, for a start there are way too many loans on SS's books that would keep me awake at night if I knew I had a chance of holding some of them, much rather my 7% at AC thanks very much....
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