aju
Member of DD Central
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Post by aju on Nov 24, 2018 17:04:38 GMT
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benaj
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Post by benaj on Nov 24, 2018 18:50:51 GMT
Zopa has finally updated some stats for 2018. www.zopa.com/lending/risk-dataIt's true the default rates are in line with expectation after revised projections. Prior 2015, Zopa managed risks well, defaults were below expectation. After 2015, revised projected defaults increased against original expected defaults rates. The positive, Zopa revised products in 2018 and the expected defaults are lower than 2016&2017. The negative, IMHO, the expected default rate of 3.32% is still high for Zopa's projected net return and nowhere near 2011 performance. |
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Post by fuzzyiceberg on Nov 27, 2018 12:02:45 GMT
What matters is whether Zopa's actual (up to 2012) or projected (2013 onwards) defaults are greater or smaller than those expected at origination, as it those (defaults at origination) that are built into the borrowers interest rates and hence our returns. So Zopa messed up big time in 2016 and 2017, and it is really too early to judge 2018. Zopa should be on a downwards only performance fee basis. They should take a 50% fee reduction for 2061 and 2017 loans.
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aju
Member of DD Central
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Post by aju on Nov 27, 2018 17:35:24 GMT
What matters is whether Zopa's actual (up to 2012) or projected (2013 onwards) defaults are greater or smaller than those expected at origination, as it those (defaults at origination) that are built into the borrowers interest rates and hence our returns. So Zopa messed up big time in 2016 and 2017, and it is really too early to judge 2018. Zopa should be on a downwards only performance fee basis. They should take a 50% fee reduction for 2061 and 2017 loans.Yeah right! I agree but can I see them doing that one, I don't think so. 
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