happy
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Post by happy on Mar 21, 2018 20:26:36 GMT
Just updating my spreadsheet with my AC figures and on updating the QAA and 30Day figures I noticed that for the first time (by my reckoning anyway) AC have passed £100 Million invested in their Access Accounts. £100,059,489 to be exact. I know these accounts are not everyone's Cup of Tea but personally I think they fill a huge gap in the P2P marketplace and I guess £100 Million invested suggests they are on the money. So Well Done stuartassetzcapital chris andrewholgate and all at Assetz Capital, a huge achievement. |
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happy
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Post by happy on Mar 21, 2018 16:44:07 GMT
I never cease to be, er, disappointed (for want of a worse word) when I see one of these observations, go to the site, find the loan and find that the interest rate is 0%. What I wanted to know is what it was just before the repayment. I am sure there are more long winded ways to find out but I have already spent longer than it was worth to satisfy my curiosity.  This seems to happen when a loan is being repaid, been discussed before and pretty sure we were told by Chris at AC it is a display thing and does not affect interest paid up to the pojnt of redemption.
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happy
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Post by happy on Mar 21, 2018 13:45:50 GMT
This is a really interesting thread and is very much part of the educational focus that's really needed for the sector to realise it's full potential. For instance, I have received a project from a reputable property developer this morning that looks good on the face of it. 3.15 acres in leafy Cheshire, planning permission for 10 Detached Houses, 3 of which form part of the affordable housing scheme. Even if the developer purchases the land for cash with permission, which they are in a position to do; Purchase Price including costs £2M Build Costs £2.5M Interest and Costs over 18 Mths @ 10% gross £400K Total development costs. £4.9M 7 X 2500 Sq FT Detached Houses £700K = £4.9M 3 x £200 Social housing = £600K = £5.5M Gross Sales Value£600K profit if it all goes well - Why would you fund it? Wouldn't pass my smell test that's for sure. Would be interesting to know what rate the developer was expecting to pay 
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happy
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Post by happy on Mar 21, 2018 9:54:53 GMT
Looks like RS Rolling market satisfied it's hunger for funds early today, all done and dusted by 9:45 and at not much more than 3.1%  . My hold RS repayments in Rolling for time being strategy might have to be reconsidered if this trend continues.....but where else to puts?  . |
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happy
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Post by happy on Mar 21, 2018 9:46:37 GMT
I certainly am of the view that not all development projects are equal in terms of risk and I invest in them accordingly. I weight my investment in development loans based on 3 broad types: 1. land, 2. new-built or demolish and rebuild development and 3. renovation based developments and I believe that generally risk decreases 1->3. I therefore I tend to lend less to type 1 and more to type 2 and 3 developments however the higher the LTV the lower the amount I will lend.
More recently I have stopped most investments in development lending in the south east (especially London) and don't invest in many projects above 60% LTV. Another few rules I have are I only lend where planning permission is in place, no speculative LTVs and I also avoid any loans that are not staged draw-down and do not have a managing surveyor assigned.
Additional consideration is given to type of development; typically I lend more to a residential development than a commercial development and if it is a development being funded for a supporting business where servicing of any subsequent refinance lending in dependant on the existence/profitability of that business then this is factored in ( i.e. a restaurant could be considered higher risk than say a doctors practice or a food manufacturer)
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happy
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Post by happy on Mar 21, 2018 9:21:39 GMT
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happy
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Assetz Capital (AC)
MLIA
Mar 6, 2018 7:34:14 GMT
Post by happy on Mar 6, 2018 7:34:14 GMT
Has anyone experienced defaults in the MLIA account at all? I realize it's possible, just wondered how common? Easiest way to see them is to "Browse Loans" sorted in loan number sequence (old to new) and look at those with the blue " Trading Suspended" flag. They're all still included in the "Live Loans" list (ie. there's no separate list of past defaulted AC loans since recovery processes continue on them all). To be fair not all loans with Trading Suspended are actually loans in default as there are many other reasons that loans are suspended such as traunche draw-down, lender vote being conducted, loan being repaid, etc. So you need to look at the activity tab on each loan page to see the details behind the suspension
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happy
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Post by happy on Feb 28, 2018 17:23:54 GMT
A debenture is the written agreement between a lender and a borrower setting out the fixed and floating charges and detailing the terms and conditions under which the lending is provided It is filed at Companies House and prevents other parties getting security against the assets in question, unless a Deed of Priority is created. (A Deed of Priority is created where more than one lender takes security over a company). So AIUI a debenture in itself offers no actual asset value but effetively provides the rules by which and governance over a company that borrows against assets (fixed or variable). This may for instance include powers such as being able to enforce external auditors in the event of loan covenant breaches that could affect the loan serviceability or asset value. Any strength or potential value of a covenant lies in the wording and how this potentially benefits the lender through the life of the loan. So a weak or badly written debenture is worth a lot less than one that gives specific enforceable powers over a business. Edit: This power may be important where charges over floating assets such as stock, WIP, debtors etc are concerned. E.g where company profits fall and stock is being sold off to fund cash-flow reducing the vales of the charged assets. Hope this helps What if the business is broke?  Then you have control over nothing. And this is kind of my point, it depends on the underlying asset, tangible or not, fixed or floating. Without the appropriate level of ongoing scrutiny of the business there could be nothing left to recover where debentures over floating charges are your security. The few I have seen on AC appear fairly comprehensive and the loan monitoring is generally pretty good but it is still possible for the unscrupulous borrower to try to quickly minimise the remaining business assets or warning signs of the slide into liquidation to be hidden or missed. A debenture on it's own may actually give you nothing and a personal guarantee may be more valuable in a recovery scenario assuming the guarantor is not bankrupt
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happy
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Post by happy on Feb 27, 2018 17:20:10 GMT
Thanks for the update, no news there really. Oh well back to watching for snow!
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happy
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Post by happy on Feb 26, 2018 21:18:28 GMT
I broardly agree and at frst thought was GBBA2 inside the IFISA, mosty MLA outside it. However, there is always th chance to dodge a bullet or two if you invest in the MLA so I'm still not sure. Six weeks to decide |
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happy
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Post by happy on Feb 26, 2018 20:46:24 GMT
Interesting, does this sort of imply effectively an in-specie transfer out of the IFISA wrapper. If that is possible could you not then dump a loan out of the IFISA if you thought it would go bad (assuming you had the chance to). Not a bad feature actually! Can't you accomplish the same thing more simply by selling the parts of that loan on the SM? Or are you thinking of loans where parts are not sellable? I was thinking more where you couldn't sell due to an iliquid SM for that loan but I suppose if you could also do it with suspended loans as well even better as it would allow you to bring the potential loss outside the ISA wrapper. If you transfer out it would obviously count as an IFISA withdrawal and I'm not sure you could replace the lost funds as I don't think there is the concept of Flexible IFISAs like Cash ISAs, is there? Edit: stuartassetzcapital confirmed the AC IFISA is a flexible ISA further down thread, good news and thankyou Stuart.
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happy
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Post by happy on Feb 26, 2018 20:10:08 GMT
Thanks happy . I think I knew that. I’m a little worried because about the same time I read daveb4 ’s post I also read the following on the ISA “important information” on AC’s web site: Withdrawing a P2P agreement from the Innovative Finance ISA wrapper will result in the loss of any Tax Incentives associated with it.which makes me wonder how or why a lender would go about withdrawing a P2P agreement from the IFISA? It must be possible otherwise why would AC make a reference to it? I’m not happy that they are “hiding” their ISA T&Cs on the main website, make it difficult to find out more. I think I may have to ask them some awkward questions tomorrow on the live chat thing. (still torn between FC ISA, AC ISA and the FC investment trust in a SS ISA here!) Interesting, does this sort of imply effectively an in-specie transfer out of the IFISA wrapper. If that is possible could you not then dump a loan out of the IFISA if you thought it would go bad (assuming you had the chance to). Not a bad feature actually! Would be interested to hear what the AC chat person has to say if you have the time. I have yet to open an IFISA as used allowance elsewhere but looking to open one in April so in a similar quantry ATM. I think I have discounted FC due to the unsecured loans leaving you too exposed to capital loss in a downturn. I'm sort of thinking AC GBBA2 at 6.26% +PF or perhaps even Lendingworks at 6% for 5 year +PF, both totally hands-off. Decisions, decisions.......
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happy
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Post by happy on Feb 26, 2018 19:07:35 GMT
All live and set up my requests. Now just have to hope i can buy some  . with a bit of luck with all the buying and selling going on especially with possible sales of loans/GBBA accounts before April 5 ISA time (as normal at this time of year) they will hopefully start filling nicely over next month or so. We all have to be a little more cautious with purchases in ISA as not tax allowable if they go wrong so may need to review my limits a little over next few weeks. Is it the case then, that if I have say £100 in a loan that “goes wrong” that that £100 somehow leaves the tax wrapper? How wrong does it have to go? Does the £100 move to the AC regular account? Don’t like the sound of that at all. I think daveb4 means you cannot offset any loss inside an IFISA against other income made elsewhere in your P2P portfolio. So lets say you make a net loss on all your loans on platform A of £1000 but make a gain on platforms B of £2000 you are only liable for tax on £1000 beind the net taxable income. However if platform A happened to be in an IFISA then you cannot take the loss to offset against non-IFISA so you pay tax on the whole £2000 earned outside the IFISA. Selecting a platform and portfolio with the least liklihood of a loss inside your IFISA is important I think.
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happy
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Post by happy on Feb 25, 2018 21:17:16 GMT
A debenture is the written agreement between a lender and a borrower setting out the fixed and floating charges and detailing the terms and conditions under which the lending is provided
It is filed at Companies House and prevents other parties getting security against the assets in question, unless a Deed of Priority is created. (A Deed of Priority is created where more than one lender takes security over a company).
So AIUI a debenture in itself offers no actual asset value but effetively provides the rules by which and governance over a company that borrows against assets (fixed or variable). This may for instance include powers such as being able to enforce external auditors in the event of loan covenant breaches that could affect the loan serviceability or asset value. Any strength or potential value of a covenant lies in the wording and how this potentially benefits the lender through the life of the loan. So a weak or badly written debenture is worth a lot less than one that gives specific enforceable powers over a business. Edit: This power may be important where charges over floating assets such as stock, WIP, debtors etc are concerned. E.g where company profits fall and stock is being sold off to fund cash-flow reducing the vales of the charged assets.
Hope this helps
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happy
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Post by happy on Feb 25, 2018 12:21:39 GMT
happy / vaelin - further changes made, more rebalancing happening. It wasn't correctly calculating where lenders had zero holding in a given loan which was throwing everything off when other "optimisations" then kicked reducing the number of accounts being rebalanced and skewing the totals. That said in the GBBA 1 there are three loans with more than 6% average holdings (#227 at 14%, #544 at 13%, and #495 at 10%). GBBA 2 is has just under 10% in #441 and 4.6% in #550. PSA has 8% in #532 and #414 with a few others above 5%. So all lenders, within the other constraints like having at least £100 in the account, should be trending toward those levels at least until the account as a whole diversifies more between new stock coming in and the next improvement to the algorithm in 8 - 10 weeks. Thanks chris, that makes more sense and hopefully your algo tweaks will move things further along the path. It seems the lumpiness of the GBBA1 and GEA will more difficult nuts to crack as no new loans are likely to be available any time soon (never for the GBBA1) and we will have to see if the phase2 changes provide more improvements. I think the real results will however be seen more in the newer GBBA2/PSA accounts with a larger loan pool and supply of new loans. We should all perhaps be a bit cautious of expecting diversification perfection in GBBA1/GEA as IMHO it is unlikely to be able to achieve this.
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. My hold RS repayments in Rolling for time being strategy might have to be reconsidered if this trend continues.....but where else to puts? 
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. with a bit of luck with all the buying and selling going on especially with possible sales of loans/GBBA accounts before April 5 ISA time (as normal at this time of year) they will hopefully start filling nicely over next month or so.