JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317 
Likes: 893
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Post by JamesFrance on Feb 24, 2019 10:05:23 GMT
I suspect that the low post count on the Euro platforms is because there have so far been few problems with European P2P sites, except for Bondora where most of us stopped investing about 3 years ago and are withdrawing the recoveries from defaults which Bondora are not keeping for themselves.
The Euro sites really have provided 12% plus returns in contrast to many UK sites which seemed to offer that but have been badly hit by defaults so only return maybe 5 or 6%.
How long is this likely to continue? So far it has been 5 profitable years for me.
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Post by geoffrey on Feb 25, 2019 7:57:26 GMT
Eight years ago (or so), UK P2P sites were offering similar returns. Then reality hit, and default rates started to climb, the honeymoon ended. I suspect a lot of Euro sites are getting towards the end of the "cash-rush" phase of rapid expansion. I'm only in one of these Euro sites, and its accounts are not looking great even though the returns are still in the 10% range. I've been in P2P and P2B now for long enough to see this pattern repeat itself across the sector. We shouldn't forget that behind all the abstraction of automated web systems, there is an actual person or business struggling to stay afloat, and getting deeper and deeper into debt at unsustainable rates to put off the day of reckoning (and of course there are some crooks too who are playing the system).
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Post by clandestino52 on Feb 25, 2019 21:52:49 GMT
I have a different opinion but I don't know if it's accurate. I think that european site are not comparable to uk sites and can have a different behavior in the past and the future. Mainly because european platforms have a large market to lend. Latvian platforms for example can have loan originators from spain, italy, denmark etc with different economic cycles and then in some european countries the interest rates for lending money are higher. This oportunity is not available for uk platforms and the very straight regulation in UK I think the reasons there are few posts are: 1. In the past this forum were some of the few places where an european investor can find information about p2p lending. But administrators are more uk focused. Now a lot of blog and forums had emerged in europe and focus in european platforms so visitors had shifted to those forums. 2. This forum is in English. Actually you can find forums in local language that have a lot of success and participation. For example crowdlending.fr in France or forofintech.org in Spain and many others in other countries. A lot of investors don't understand English and trust other investors from same country. European companies also shifted to those places to market they platforms. I personnally run a blog focused on european platforms www.globalp2plending.com/en/blog/ available in English but also in Spanish and French and I can assure you from the number of visitors we receive every day that European platforms are getting too much success especially those offerring buyback guarantee. |
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Post by geldregiertdiewelt on Feb 25, 2019 23:13:07 GMT
Haha, thanks for advertising your blog, which indeed I didn’t know yet. However, it’s also not sooooo super busy yet, isn’t it?  But I agree with you that p2p platforms on the continent are different from UK sites (which I still consider European though ). And I also agree that the reason is that they are diversified across many countries and national credit markets. But we should not forget: Only when we're through the next recession, we will really know how diversified we were vs how much it all correlated  !! Last not least, much of the UK p2p lending also seems to revolve around property/mortgages, where rates are per se lower than in other types of credit. Me I'm perfectly fine with all € p2p lending blogs being in snooze. |
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