aju
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Post by aju on May 24, 2019 22:51:06 GMT
I'm not sure if this is anything to write home about but the coverage ratios increased recently relative to the last check I made on 25th April 2019. Interest coverage ratio = 112% and today it is 115% Capital coverage ratio = 226% and today it is 233% Reference
A little bit of positive news perhaps. Mind you still not up to 118% and 234% of early april... edit: Its probably the effect of all the new money so far this period, I'm guessing of course. |
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rscal
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Post by rscal on May 25, 2019 6:54:34 GMT
That prompted me to think of a statisitc I could make up. I'm drawing down my RS account and it will approach the point at which my interest to date matches my remaining balance. ( So 'Interest to date/Invested balance' needs to reach '100%' eh? )
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benaj
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Post by benaj on May 25, 2019 8:02:27 GMT
The good news, RS continues provides updates on some key statistics and coverage hasn't deteriorated.
The interesting bit: 2019 defaults projection revised to a lower figure: 3.5% (4.8% before), this could be a sign for tighter lending requirement.
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aju
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Post by aju on May 25, 2019 8:33:05 GMT
That prompted me to think of a statisitc I could make up. I'm drawing down my RS account and it will approach the point at which my interest to date matches my remaining balance. ( So 'Interest to date/Invested balance' needs to reach '100%' eh? ) It's not quite the same but drawing down and even selling off some investment in Zopa creates weird effects such as exacerbating the effects of defaults. I'm guessing, well rather hoping actually, that this effect will settle itself down over the coming months. This month, the interest levels are much lower after the reductions in loans due my selling. Has nearly reached 100% or more losses on the month due to defaults this month. That said the older defaults of some considerable value - I had quite high lending amounts - have now started to pay back money as some others like benaj have recorded in other threads. Your statistic is an interesting thought though as some of my lending on zopa has reached these numbers and in some case the amount left in Plus has been surpassed. I'll probably stick to XIRR's though when I can get them to work properly - I need to record it better with all the reductions and sell offs still very new they have got a bit problematic and need more time to adjust some of them to get better/accurate figures.
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Post by propman on May 28, 2019 15:11:11 GMT
Comparing to April, the significant changes are in the bad debt estimates and actual bad debts. A net £2.56m of bad debts against a payback of about £52m, so 5% of that paid back against estimates of 3.1-4.7%. The projections for 2018 & 2019 (some £544m of the £854m outstanding) have been reduced. This despite bad debt of repayments rising from 4.2% to 4.4% for 2018 (it is too early for 2019 to be meaningful, but the assumption is that the actual bad debts will only be 75% of the proportion of 2018 despite 35% higher lending volumes). Net impact: £1m reduction in expected bad debts for a PF & loanbook of about the same amount which if £167k smaller in cash.
Lets just hope that they have used the recent lower rates to lenders to tighten lending criteria.
- PM
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