trium
Member of DD Central
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Post by trium on Apr 27, 2019 13:56:55 GMT
Zopa used to show both the gross (before bad debt) and the net (after) target rates of return on its products. I use those figures to determine the percentage loss of gross interest earned that is expected due to bad debt. I can no longer find any reference to the gross rate, neither on the site nor on the weekly updates. Last I saw the gap between gross and net in Plus had narrowed a fair bit (due to reduced exposure to D/E).
Anyone know if this information is still available somewhere?
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Post by Deleted on Apr 27, 2019 14:08:10 GMT
The default rates and projected rates after default are at www.zopa.com/invest/risk/marketsI used those default rates to recreate the difference quoted between the gross and net rates on the summary screen, but had to use rates that were above the mid-points of the ranges given to arrive at their figures. Zopa says that half the defaults occur in months 5 to 16, so I broke down the defaults, trying to be as close as possible to the graph shown in the video that talks about defaults on the Statements page. You can then compare your actual defaults with those expected for your loan book, allowing for the age of each loan. Ultimately that was what encouraged me to cash in my loans. |
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