06-07-2018, 08:04 AM
New loans from AC are running at £5m per week but the retail crowd cannot absorb them all. The SM now stands at over 15 per cent of the loan book - a record level in my experience. The QAA and 30 day accounts are propping up the market - hence the need for the recent bonuses - but this strategy is not sustainable in the long term. More retail investors investing in the MLA and GBBA are needed, or the rate of loan book expansion has to be curtailed. Perhaps AC should provide the usual market incentive - raise interest rates (which are too low for the risk involved)?