High default rate | P2P Independent Forum

stanyko

Posts: 20

High default rate Jul 27, 2014 15:37:27 GMT

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Post by stanyko on Jul 27, 2014 15:37:27 GMT

According stats, default rates increased rapidly. I assume it's caused by Bondora +..
I've started investing in Bondora + loans and I'm fairly concerned about this increase of default rates. I believe it will be much higher that today (few months after start with risky loans).

What is the real default rate? What default rates do you expect to be in one year for example?

Thx.

batchoy

Posts: 1,109

Likes: 280

High default rate Jul 27, 2014 16:29:55 GMT

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Post by batchoy on Jul 27, 2014 16:29:55 GMT

It depends on what you mean by default rate, one of the problems that has arisen lately is that Bondora are bringing their figures inline with P2PFA recommendations for standardization across P2PFA members and taking the default point as 120 days overdue when previously it was 60 days overdue when they start their recovery processes.

My personal default point is the date of the first missed payment, I also manage my loans very heavily so my default rates both for B and B+ loans is much lower than the platform default rate.

duck
Member of DD Central

Posts: 2,571

Likes: 5,658

High default rate Jul 27, 2014 16:33:01 GMT

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Post by duck on Jul 27, 2014 16:33:01 GMT

My current default rate is 6.14% (60 days) with a couple due in the next month (sold a couple of almost certain defaults on the aftermarket last week).

Obviously I have new loans that are not yet old enough to be able to default but the figure I have given above is for a running year. Note the figure is for individual loans not cash value.

Last Edit: Jul 27, 2014 16:33:45 GMT by duck