happy
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Post by happy on May 18, 2018 6:34:01 GMT
Well, having withdrawn all my own investment in FC after the last round of "enhancements to the Lender experience" I left my lifetime FC profit in about 50 property loans to run to maturity.
So far around 50% have repaid and of the remaining 50% half of them are now late, including "Devon".
I'm in profit with FC and having withdrawn all I ever invested it does feel a bit like I'm playing with house money. It will be interesting to see where this all ends.
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happy
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Assetz Capital (AC)
#441
May 18, 2018 6:12:49 GMT
SteveT and cb25 like this
Post by happy on May 18, 2018 6:12:49 GMT
Before voting for a particular option it's possible to ask AC whether it would rule out use of the PF (I've done this before, but can't remember the loan). AC have stated a number of times in the past that where a voting choice affected any potential benefits via the PF then it would be made clear to voters at the time of the vote. So not a concern unless AC tell us otherwise.
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happy
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Post by happy on May 16, 2018 15:53:09 GMT
This seems to reflect a misunderstanding of the AC provision fund. For the QA and 30 day accounts the provision fund (or cash float) trades in suspended loans, so an investment into these accounts will involve purchasing a share of of these loans. Equally, on withdrawal, the pf takes back a share of the suspended loans. If all funds were withdrawn from QA or 30 day, all suspended holdings would be available to cash out. The higher paying investment accounts are different, the pf only pays out when all forms of recourse are exhausted, ie can - kick - long -road. I have reduced confidence in RS, the provision fund remains underfunded relative to target and the rolling market changes are evidence of a system under stress. The 5yr rates are too low considering the risks & the inevitability of a recession in the next 5 yrs. Hi Dave I dont think I have misunderstood. AFAIK the access accounts PF has not paid out on anything (other than interest) - it merely "ringfences" some of the PF to cover expected losses on suspended loans. If you have such confidence in the PF then perhaps you can enlighten me to its size? Or how much capital it has paid out? I agree RS is not very attractive now. However to complain about an underfunded RS PF (that has paid out 100% immediately 100% of the time) yet somehow like the AC PF is totally beyond my comprehension. Sorry. I think you will find that when it comes to property development loans (something RS is doing more and more of but they don't tell us how much) the RS PF works pretty much as the AC one does but RS hold the defaulted loan on its live loans book, not in the PF as it does with consumer loans. This means when you invest new money in RS now you could be buying into defaulted development loans withou knowing it just like the QAA and 30 Day accounts. Why have RS done this? Because their relatively small PF would be wiped out if it had to pay out on just a few defaulting development loans. The RS PF model would never work on a loan book of just a few hundred big loans, that's why they are different. EDIT And thats why RS have changed theirs for thier bigger loans.
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happy
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Post by happy on May 16, 2018 15:36:22 GMT
or is this money tending to head off-platform? The report I just quickly checked only goes back 20 weeks, but not one of those 20 weeks has seen a net withdrawal from the platform. Deposits have exceeded withdrawals in each of those weeks, with only one of those weeks being less than a 7 figure net inflow and even that was over £900k. Our lender base is growing at a very healthy rate but so is our borrower origination so we need to make sure we keep the two balanced and this promotion is part of that strategy. Indeed it seems they have and a lot has headed into the QAA/30 Day, only a few weeks or so ago I congratulated AC for hitting £100m in their Access accounts, when I last looked a few days ago it was hovering around £110m Some growth!
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happy
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Post by happy on May 9, 2018 21:42:36 GMT
What is "skeggy"? Never heard this term before. When I worked in the midlands back in the late 70's half the local population went to Butlins in Skeggy for their summer holidays. I'm just reminiscing what working in the 70's was like. All seemed a lot simpler in those days i feel.......
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happy
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Post by happy on May 9, 2018 7:14:08 GMT
As others have said, 'closed' means you can't BUY, you can still SELL. I thought you can still BUY into any available qualifying loans with any funds held in the GEA, i.e. interest and capital repayments retained within the GEA, but you can't add new funds to the GEA account.
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happy
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Post by happy on May 9, 2018 7:00:11 GMT
Ok it was obviously just a coincidence. The reason why I believe that money invested prior to 6th June will not be subject to the new Ts & Cs (apart from the fact that they have not been published yet) is the Ratesetter response to your question "Will I be able to see how long the individual contracts are on the rolling market after the change as I can on the 5 year market?". Their response is "Investors can already access this information for the Rolling market. In the member area select the “Rolling” link which appears under “your Portfolio” in the menu on the left hand side of the page. Then click on the plus sign next to “On Loan”, then select “Your money on loan”. From there you can see all the contracts you are matched to and their duration." Up until now this has always shown a date up to 30 days from the date that the investment was made for the Rolling market. The response implies that this will change to the end date of the underlying loan. This change would not appear to have happened yet. I assume we will start seeing longer dates only after the change is implemented in June. So am guessing any rates on loans I currently have will be disregarded and a new loan with the market rate will be setup as my current loans mature in June and July. This seems to be the case, just checked and all my Rolling contracts written yesterday have an end date of 8th June so still 30 days at the moment
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happy
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Post by happy on May 8, 2018 15:24:49 GMT
I cannot think of any other organisation where a senior staff member would have communicated with us on a Bank Holiday and kept us up to date with progress, an irritating issue but promptly fixed. Thanks to all involved in putting it right. Agreed, and whilst the AC IT system may seems a little brittle (Chris's words), from my experience when things have gone wrong before it seems to me that there is a very strong jounaling system in place that is good at being able to roll back and replay tranactions once the underlying error is fixed. It can take a while to catch up but I have never seen it fail to resolve the errors.
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happy
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Post by happy on May 8, 2018 11:22:51 GMT
What a totally dumb move by RS. Forced reinvestment of Rolling capital repayments back into Rolling at whatever the market rate is an unfair restriction and just confuses things beyond belief, this does not happen on the other markets.
IMHO this move is aimed squarly at mitigating the maturity transformation risk of Rolling for RS and has nothing to do with simplifying the market for investors.
Bad Move, All reinvestment turned off, if I want 5 year investment in predominantly retail lending I would rather put my money in LendingWorks at 6%.
Bye bye RS!
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happy
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Post by happy on May 4, 2018 14:44:21 GMT
If you wanted to use FC early defaults as an indicator of an approaching recession, then you would have to strip out those which are an indicator of an approaching flotation. That task has been made harder, deliberately imo, by withdrawing sight of new loans in the loan book after 29th March. And from what I remember of those Golden Auction Days, sometime loans didnt even get fully funded if they looked really dodgy and there wern't enough 50p's in the the autobid meter to munch them up on behalf of the unthinking/uncaring masses. What fun it was, having said that I have a lot more time for golf nowerdays 
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happy
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Post by happy on May 3, 2018 20:51:24 GMT
A number of loans in the pipeline are popping out with older (and lower) agreed rates as can be seen above but the overall pipeline getting close to draw (not necessarily visible publicly yet) is going higher in rate. Pretty much nothing new is being agreed or in fact needing to be agreed below 8% MLA I am advised. Pipeline currently shows 11 @ 6% 7 @ 6.5% 18 @ 7% 1 @ 7.35% 7 @ 7.5% 12 @ 8% 1 @ 8.5% 2 @ 9% So around 25% of the pipeline is 8% or higher. That certainly feels like an uptick in rates compar ed to recent months. Taking a look at the loan book shows the last 50 live loans had only 9 loans at 8% (if you ignore the tiny little 9% #708) so perhaps the tide is turning in our favour as Stuart said.
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happy
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Assetz Capital (AC)
IFISA
May 3, 2018 20:39:48 GMT
Post by happy on May 3, 2018 20:39:48 GMT
By which time £1m will just about buy you a small carport in Cardiff? Actually IIRC several folks have already cracked the £1m ISA barrier, although they have been lucky, and may have had a head start from PEPs .. Or even TESSAs, remember them, think you could transfer TESSA funds to PEPs and ISAs.
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happy
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Post by happy on May 3, 2018 20:33:28 GMT
A useful suggestion thanks I suggested this type of improvement a few years back but it never made it to the top of any list. A simple solution to reduce the number of suspended loans (and associated levels of alarm they cause) would be to have a new "Trading Paused" status for non credit issue related events like traunche drawdowns, non critical lender votes etc. This could then limit use of "Suspended" status to those loans with real issues and defaults. Could work without too much effort. I notice #448 is showing "Vote in Progress" status instead of just "Trading Suspended". Most welcome, progress indeed. Whilst on the subject of improvements I was also delighted to see the Investment Accounts "On Repayment" option on the Dashboard now allows you to withdraw capital repayments and/or interest directly to another investment account. E.G. repayments from GBBA1 could be sent directly to GBBA2. Absolutely perfect, thanks chris and the dev team.
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happy
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Post by happy on May 3, 2018 20:24:58 GMT
Late interest does create PF payouts (on the usual discretionary basis) yes up to the point of being credit event suspended and indeed late interest could be the driver for the suspension. If an interest payment was due a week before being suspended then it should be paid and if one week after then it would not. I hope this helps. Thanks, but no it's not really helping, I asked if a loan being suspended is a trigger for not paying out from the provision fund and to be totally honest I missing the yes/no answer to that question. Maybe it's just me. However for my simple mind, please could you clarify The simple answer is no. Suspension does not mean the PF will pay, it means that trading in the loan is suspended. Loans can be suspended for many reasons, some of these may be credit events that affect the loan in some way that changes it's risk profile. I am sure it is possible that interest could still be being paid against many suspended loans. I think the underlying issue here is many people have mistakenly linked "Trading Suspended" with "Loan Defaulted", they are not the same.
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happy
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Post by happy on Apr 28, 2018 5:36:50 GMT
Hi just a comment having got a bit windy over the number of my loans going suspended , but having worked through one at a time and the majority waiting a vote of some sort in reasonably benign conditions a traffic light system green for a vote of some other non critical risc to capital or interest and red for others saying it's in default or going that way may stop me having a heart attack. A useful suggestion thanks I suggested this type of improvement a few years back but it never made it to the top of any list. A simple solution to reduce the number of suspended loans (and associated levels of alarm they cause) would be to have a new "Trading Paused" status for non credit issue related events like traunche drawdowns, non critical lender votes etc. This could then limit use of "Suspended" status to those loans with real issues and defaults. Could work without too much effort.
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