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Post by nellerdk on Sept 11, 2017 8:31:22 GMT
44% of all my loans are issued by MOGO. I have been using Autoinvest. This is something to watch out for, if you don't want such a big exposure to only one lender (MOGO).
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Post by extremis on Sept 11, 2017 8:51:01 GMT
You should probably create multiple Autoinvest portfolios for different loan originators or loan types and set the maximum amount to invest in each one according to your desires.
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Post by nesako on Sept 11, 2017 10:24:33 GMT
To be honest, if I had to chose one provider to be overexposed on Mintos, it would be Mogo  Not many providers offer collateral... |
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fric
Member of DD Central
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Post by fric on Sept 11, 2017 13:47:43 GMT
Well yeah, it depends on how you setup your auto invest options. If you set a general 1-72 month 10-15% interest rate with buybacks auto invest, than yeah, you might end up with very one sided portfolio depending on the supply at that moment.
You have to setup multiple auto invest portfolios with different settings, have to choose appropriate priority in relation to each other and you have to regularly check everything.
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kulerucket
Member of DD Central
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Post by kulerucket on Sept 11, 2017 20:44:35 GMT
I have purposely allocated 40% to Mogo which is 4x the allocation to any other originator.
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Post by nellerdk on Sept 12, 2017 17:20:10 GMT
I have purposely allocated 40% to Mogo which is 4x the allocation to any other originator. why?
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Sept 12, 2017 18:26:46 GMT
I have purposely allocated 40% to Mogo which is 4x the allocation to any other originator. why? It seems the safest originator to me relative to the others. Good financial reports, at least a weak level of collateral on loans and buyback to avoid long recoveries. And 13%+ returns on BB loans doesn't hurt.
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Post by saraph on Sept 23, 2017 8:38:53 GMT
One thing to consider: what would happen if Mogo went under? I think Mintos too would take a crushing blow, if not deadly.
Honestly, how many investors care enough to not allocate at least 50% of their Mintos assets to Mogo? I'd say not that many.
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Post by kilozulu on Sept 23, 2017 17:08:00 GMT
One thing to consider: what would happen if Mogo went under? I think Mintos too would take a crushing blow, if not deadly. Honestly, how many investors care enough to not allocate at least 50% of their Mintos assets to Mogo? I'd say not that many. Why would Mintos really suffer if Mogo defaults? These are two separate independent companies, with possibly some partial overlap between ultimate owners, but independent businesses with independent managements. The only impact I can think of is - drop in Mintos business volume (Mintos gets paid to list Mogo loans, less loans means less income). But this would partially be compensated by the investors simply choosing non-Mogo loans, say Lendo, and creating the same fee income to Mintos. - damage to buyback guarantee concept credibility - but Eurocent already showed it is not German bunds:) - indirect effect of overlapping shareholders being less capable to provide additional support, if needed, by injecting extra equity. So adding this up, Mogo default would clearly be not nice, but definitely not deadly or crushing, and I would say not even significantly damaging. Any other thoughts?
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Post by gmaxkenny on Sept 23, 2017 19:53:56 GMT
I dont think you can compare Eurocent and Mogo. In my instance Eurocent made up less than 1% of loans wheras Mogo makes up 40% and as Mogo has been with Mintos from almost the beginning I would say that it makes up a large part of the average investors loans on the Mintos platform. Were Mogo to fold it would have a catastrophic impact on the portfolios of most investors unlike Eurocent which was no more the a small inconvenience.
I my opinion if Mogo collapsed so would Mintos as most investors would almost certainly desert the platform much like a bank run. I doubt if most people would care that Mogo and Mintos are different companies in this scenario.
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Post by kilozulu on Sept 23, 2017 20:37:10 GMT
I dont think you can compare Eurocent and Mogo. In my instance Eurocent made up less than 1% of loans wheras Mogo makes up 40% and as Mogo has been with Mintos from almost the beginning I would say that it makes up a large part of the average investors loans on the Mintos platform. Were Mogo to fold it would have a catastrophic impact on the portfolios of most investors unlike Eurocent which was no more the a small inconvenience. I my opinion if Mogo collapsed so would Mintos as most investors would almost certainly desert the platform much like a bank run. I doubt if most people would care that Mogo and Mintos are different companies in this scenario. Looked at Mintos statistics page, Mogo makes 40% of the outstanding portfolio on Mintos. In Eurocent example about 1/3 of portfolio defaulted, the rest kept paying, if I correctly read info. Using it as proxy, if you had 40% Mogo from your portfolio, that would translate into 10-15% of total portfolio defaulted. Assuming that is sufficient to persuade average investor to abandon Mintos, the timing of reflows comes into play. In bank you can call money immediately, here you have to wait at least a month, typically longer whislt your loans mature and repay the money that can be withdrawn. With average investor having an attention span of a golden retriver, such delay could be sufficient to allow him to overcome the initial shock and reconsider withdrawal, once he slowly grasps that most other platforms are not really any safer.
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Post by saraph on Sept 24, 2017 9:55:59 GMT
Why would Mintos really suffer if Mogo defaults? These are two separate independent companies, with possibly some partial overlap between ultimate owners, but independent businesses with independent managements. The only impact I can think of is - drop in Mintos business volume (Mintos gets paid to list Mogo loans, less loans means less income). But this would partially be compensated by the investors simply choosing non-Mogo loans, say Lendo, and creating the same fee income to Mintos. - damage to buyback guarantee concept credibility - but Eurocent already showed it is not German bunds:) - indirect effect of overlapping shareholders being less capable to provide additional support, if needed, by injecting extra equity. So adding this up, Mogo default would clearly be not nice, but definitely not deadly or crushing, and I would say not even significantly damaging. Any other thoughts? I may have exaggerated a bit with "deadly blow", but I'd say one thing is for sure. If Mogo defaulted and wouldn't be able to pay buybacks anymore, it'd completely destroy investors' confidence in the Buyback Guarantee feature. Despite being two separate entities, Mintos would be considered a dangerous place to invest on. Investors on Mintos aren't used to such risks, because everything has been going very smoothly so far (except maybe some Eurocent worries). I'm not saying it's a logical thing. I certainly would be blaming myself for allocating such a huge portion to a single loan originator, but would everyone (or at least majority)?
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Post by explorep2p on Oct 21, 2017 11:31:09 GMT
44% of all my loans are issued by MOGO. I have been using Autoinvest. This is something to watch out for, if you don't want such a big exposure to only one lender (MOGO). Hi nellerdk We just published a post today on how to get the most out of P2P auto-invest and also avoid nasty surprises like this. It was written with Mintos investors particularly in mind so might be interesting. Auto-invest: how to become a Jedi Master and avoid nasty surprises
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Not many providers offer collateral...
