jcb208
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Post by jcb208 on May 16, 2020 13:19:18 GMT
As discussed HERE I was under the impression that when the provisional fund runs out then capital is taken from every investor to top up the provisional fund to cover defaults or am i wrong
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chris1200
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Post by chris1200 on May 16, 2020 13:25:05 GMT
As discussed HERE I was under the impression that when the provisional fund runs out then capital is taken from every investor to top up the provisional fund to cover defaults or am i wrong I think one21 's point is that some investors will already be 'out' by that point due to having reached the end of the RYI queue (taking no haircut), while others will still remain and have to take the haircut, even though the material circumstances (eventually) causing the haircut were already in effect. (Correct me if I'm wrong, one21 ) Edit: I suppose a solution that might satisfy r00lish67's expressed concerns(?) would be for a universal haircut to be introduced now, rather than holding back RYI payment on defaulted loans. This would continue the risk-pooling effect rather than unfairly penalising investors who happened to invest in loans that went on to default through no choice of their own. This might also fit within RS's terms better (although I'd have to look at them in detail to tell at what point the haircut can be made). To be clear, I'm not advocating this. Obviously I want all my money without a haircut!
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one21
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Post by one21 on May 16, 2020 13:33:34 GMT
As discussed HERE I was under the impression that when the provisional fund runs out then capital is taken from every investor to top up the provisional fund to cover defaults or am i wrong I think one21 's point is that some investors will already be 'out' by that point due to having reached the end of the RYI queue (taking no haircut), while others will still remain and have to take the haircut, even though the material circumstances (eventually) causing the haircut were already in effect. (Correct me if I'm wrong, one21 ) Yes thanks chris1200 , but I wouldn't be expecting anyone to be getting a 'haircut' in the longer term! It would just be a matter of waiting a little longer until the situation picks up again, thus saving the platform from going under possibly.
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chris1200
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Post by chris1200 on May 16, 2020 13:35:19 GMT
I think one21 's point is that some investors will already be 'out' by that point due to having reached the end of the RYI queue (taking no haircut), while others will still remain and have to take the haircut, even though the material circumstances (eventually) causing the haircut were already in effect. (Correct me if I'm wrong, one21 ) Yes thanks chris1200 , but I wouldn't be expecting anyone to a a 'haircut' in the longer term! It would just be a matter of waiting a little longer until the situation picks up again. Ah right, yes - then my solution (added in the 'Edit' above) doesn't work. The only way would be to somehow withhold x% (universally) of the RYI as a contingency to be reconciled at a later date. But by then I think things are probably getting far too complicated...!
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spiral
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Post by spiral on May 16, 2020 15:03:59 GMT
Actually I think the capital haircut would work.
The current interest rate cut is equivalent to about a 2% reduction on my expected end of year portfolio total. If that was introduced now as a capital reduction, they could reinstate the rates being paid to lenders to 100% of their matched rate and come the end of the year my portfolio will have the same value as it is currently projected to have.
I can see this having a much more positive impact than the current drawn out situation.
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chris1200
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Post by chris1200 on May 16, 2020 15:07:57 GMT
Actually I think the capital haircut would work.
The current interest rate cut is equivalent to about a 2% reduction on my expected end of year portfolio total. If that was introduced now as a capital reduction, they could reinstate the rates being paid to lenders to 100% of their matched rate and come the end of the year my portfolio will have the same value as it is currently projected to have.
I can see this having a much more positive impact than the current drawn out situation.
Ah yes, I only meant wouldn't work in the sense of satisfying one21's concerns. Clearly it could indeed work more generally (although I see arguments for and against).
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Post by bikeman on May 16, 2020 20:08:30 GMT
Because diversification is achieved through the provision fund in RateSetter. True, unequivocally. Having said that, presumably the 19k was put on the market in one lump, why would anybody expect any other result than it mostly going to a limited number of loans? Because Ratesetter claim that their provision fund backups up their loans so it makes no difference to risk having all funds invested in a single loan, so we take them at their word and put in lump sums. And then they undermine this by sticking a disclaimer against the details of each loan - a new addition which takes some finding: The Provision Fund we offer does not give you a right to a payment so you may not receive a pay-out even if you suffer loss. The Fund has absolute discretion as to the amount that may be paid, including making no payment at all. Therefore, investors should not rely on possible pay-outs from the Provision Fund when considering whether or how much to invest.As an ex Assetz Capital investor I'm getting a bit of de ja vu.
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Post by zs on May 17, 2020 9:12:27 GMT
Good Day to you all. I have a couple of questions regarding my investment in Ratesetter and I am hopeful someone is able to shed some light on it. My situation is as follows:
- I was a little late to the party, withdrawing my investment in Access on 21/04/2020 and 5 Year on 27/04/2020.
- I currently live overseas (+3hours)
Since releasing my investment, I have noticed a window between 3am and 6am local time whereby small amounts (averaging between £1 and £60 are returned to my holding account, and a larger proportion goes back out on loan. On a very rare occasion, I can send funds 'on market' to the holding account for withdrawal.
In light of the above discovery, for the past month (!) I’ve set my alarm each night to try and capture as much of the holding account deposit as possible, before it is re-lent out. This has amounted to around £1100. Based on these projections, I'm going to need a more comfortable chair! Naturally, this is not sustainable, I know, however, is anyone able to answer the following questions which may partly restore my sleep pattern:
1) Why are some funds being returned to holding account, and others re-lent? (not that I’m complaining!) I thought RS decided to relend everything.
2) Is there a way to foresee how much will be returned prior to the 3hour window, so I know whether the amount released to holding is worth waking up for a refreshing my browser for 3 hours? (One night I waited around for only £1.89 to be returned)
3) Why does this return of funds to the holding account only occur around midnight GMT?
4) Is there a way to cancel on market funds to return to the holding account? This used to be a feature, however, the checkbox has vanished in recent weeks.
Thanks in advance, although a long term investor, I’m a novice to how the platform technically functions, so any advice appreciated to restore my sanity!
Good luck to us all!
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Post by Badly Drawn Stickman on May 17, 2020 9:23:26 GMT
Good Day to you all. I have a couple of questions regarding my investment in Ratesetter and I am hopeful someone is able to shed some light on it. My situation is as follows: - I was a little late to the party, withdrawing my investment in Access on 21/04/2020 and 5 Year on 27/04/2020. - I currently live overseas (+3hours) Since releasing my investment, I have noticed a window between 3am and 6am local time whereby small amounts (averaging between £1 and £60 are returned to my holding account, and a larger proportion goes back out on loan. On a very rare occasion, I can send funds 'on market' to the holding account for withdrawal. In light of the above discovery, for the past month (!) I’ve set my alarm each night to try and capture as much of the holding account deposit as possible, before it is re-lent out. This has amounted to around £1100. Based on these projections, I'm going to need a more comfortable chair! Naturally, this is not sustainable, I know, however, is anyone able to answer the following questions which may partly restore my sleep pattern: 1) Why are some funds being returned to holding account, and others re-lent? (not that I’m complaining!) I thought RS decided to relend everything.
2) Is there a way to foresee how much will be returned prior to the 3hour window, so I know whether the amount released to holding is worth waking up for a refreshing my browser for 3 hours? (One night I waited around for only £1.89 to be returned)
3) Why does this return of funds to the holding account only occur around midnight GMT?
4) Is there a way to cancel on market funds to return to the holding account? This used to be a feature, however, the checkbox has vanished in recent weeks.
Thanks in advance, although a long term investor, I’m a novice to how the platform technically functions, so any advice appreciated to restore my sanity! Good luck to us all! Sounds a little bit like simply increasing your reinvestment rate on access would allow you to sleep soundly. Look at your settings and report back, then I am sure you can be helped.
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Post by zs on May 17, 2020 9:35:34 GMT
Thanks, I did increase the reinvestment rate to 8% but it made little difference in the amounts returned, or their frequency. Eiither at the going rate, or at 8% I had a very short window to release the funds to my bank account.
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Post by Badly Drawn Stickman on May 17, 2020 9:42:14 GMT
Thanks, I did increase the reinvestment rate to 8% but it made little difference in the amounts returned, or their frequency. Eiither at the going rate, or at 8% I had a very short window to release the funds to my bank account. So eliminating the obvious. Your access setting show as your rate 8% and not Going rate? Edit just to cover two of your other point, 3) midnight GMT would logically be the start of the daily processing. 4) no, this has been removed
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Post by Ace on May 17, 2020 9:56:11 GMT
zs, it sounds to me that you are understandably confused by the way the access account operates. This had been discussed many times in many threads. Here is a link to one that may enlighten you. In summary, you can sleep soundly and withdraw the small amounts that are really repaid each morning, the rest is just an illusion!
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Post by Badly Drawn Stickman on May 17, 2020 10:02:57 GMT
zs , it sounds to me that you are understandably confused by the way the access account operates. This had been discussed many times in many threads. Here is a link to one that may enlighten you. In summary, you can sleep soundly and withdraw the small amounts that are really repaid each morning, the rest is just an illusion! I was more optimistic that a beneficial glitch may have been uncovered, so was going with the hard yards.
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Post by zs on May 17, 2020 10:06:57 GMT
I see - thanks Ace for the link and VillageIdiot. The volume of forum here are somewhat of a minefield.
I'm not sure sleeping soundly is an option at the moment, however, I will trial whether the funds I witness during the early hours, remain in the morning if I don't withdraw it to my bank account. We'll see.
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Post by Ace on May 17, 2020 10:14:03 GMT
I see - thanks Ace for the link and VillageIdiot. The volume of forum here are somewhat of a minefield. I'm not sure sleeping soundly is an option at the moment, however, I will trial whether the funds I witness during the early hours, remain in the morning if I don't withdraw it to my bank account. We'll see. It should be easy to tell. If the funds that were relent were at your new chosen rate (8%), then they were real repayments that could have been withdrawn. If they are at the repaid loan's rate (presumably < 8%), then it's the stupid, confusing and lazy way that RS have coded the access payment handling system, I.e. an illusory repayment that you had no chance to get your hands on.
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