JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317 
Likes: 893
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Post by JamesFrance on Mar 1, 2016 12:00:23 GMT
I decided to give this a try to see what type of loans it would bid for. It no longer wants to put 80€ into every loan so didn't need much money for ten bids.
The expected distribution of F rated loans is given as 3.63% but it bid for 4 out of the ten for those but one failed to fill so one third of my 9 loans are F rated.
80% of the loans should be Estonian and I have 5 out of 9.
18% of the loans should be Finnish and I have 4 out of 9.
Fortunately I got no Spanish loans.
Would a longer trial end up with the expected distribution?
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Post by oktaeder on Mar 1, 2016 13:55:27 GMT
I understood that PM tries to minor the difference between your actual portfolio and the numbers that it shows. If you are low in F loans it will buy a lot of them for you.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Mar 1, 2016 14:22:00 GMT
I just checked and I have 102 F loans which is about 5% of the total, so I didn't have less than the target.
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Post by rahafoorum on Mar 3, 2016 12:34:41 GMT
It is not aiming to get any sort of allocation for you. The allocation shown there is same for everyone and it's changing over time, but PM doesn't target this allocation.
Put simply, you have no idea what it'll invest into nor what risk/return level it's attempting to achieve.
Basically it's a black-box where you put your trust into Bondora and let them invest your money the way they want to, without knowing what the aim is, so you actually don't even have any idea whether they're on target compared to what they wanted to achieve or totally missing the mark. Not to mention whether it's on target for what you want to achieve.
The only number that is shown there, is the Expected Return, but even that has changed within few months by a LOT, is the same for everyone and is not constant by any means, so you can't really make any estimations based on that either. Had you started the Progressive one last year, you would've looked at around 21% Expected Return compared to the 15% shown today.
You should read the disclaimer part in the bottom of the page as well:
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Post by coolrunning on Mar 27, 2016 9:11:28 GMT
I was very busy in the period mid Jan to now.
Usually I am very hands-on and carefully select all my loans. But I knew I would be unable to work on Bondora so I switched on the PM - conservative setting.
In this 10 week period, the PM got me 37 loans.
- Est: 24
- Fin: 13
- B 2 (one at a very low 15.74%, I would never have taken this one. Another at 18.18)
- C 22
- D 13
I am back to daily management of my investment, so the PM is now paused.
I shall carefully monitor these 37 loans and report back. So far, I am reasonably content with the selection, but time will tell.
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Post by rahafoorum on Mar 27, 2016 22:41:43 GMT
I was very busy in the period mid Jan to now. Usually I am very hands-on and carefully select all my loans. But I knew I would be unable to work on Bondora so I switched on the PM - conservative setting. In this 10 week period, the PM got me 37 loans. - Est: 24 - Fin: 13 - B 2 (one at a very low 15.74%, I would never have taken this one. Another at 18.18) - C 22 - D 13 I am back to daily management of my investment, so the PM is now paused. I shall carefully monitor these 37 loans and report back. So far, I am reasonably content with the selection, but time will tell. Were your previous manual investments more to the riskier segment side? D-HR?
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Post by coolrunning on Mar 28, 2016 5:35:31 GMT
Rating Count
None 4
AA 7
A 22
B 128
C 363
D 271
E 113
F 67
HR 143
In value, biggest is C then D, B, HR, E. So HR holdings average smaller.
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