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Post by shafty on Aug 1, 2016 1:46:05 GMT
I opened a Mintos account a couple of months ago and have started investing in a number of loans from various originators. I have recently noticed that the number of non current loans in my account has been surging which I find disconcerting even though these are loans with a buyback guarantee. Below you can see a screenshot of my account with some stats: So my thoughts on which I would like the input of other Mintos investors are: 1) Is it normal see such a huge spike in the number of non-current loans? Has this been going on from the time of Mintos's inception? 2) Should I think of the non-current loans as a usually steady percentage of my total loan portfolio that get's revolved due to buybacks and subsequent autoinvest? If so, what is the usual percentage of non-current loans you have noticed in your account? 3) Do you think the loan originators manage in the end to recover most of the non-current loans after they buy them back from us? This is a concern to me as I am trying to gauge how financially sound the buyback guarantees are and if they make economic sense. Any input/thoughts from other Mintos investors would be highly appreciated, thanks!
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Post by wiseclerk on Aug 1, 2016 6:05:27 GMT
re 1) Don't know whether it is "normal". It does match my portfolio experience. I don't have answers to your other questions.
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Post by extremis on Aug 1, 2016 9:55:29 GMT
1) It does take a few months for the non-current loans to build up; since you are new to Mintos, i would say, yes, that's normal.
2) Exactly, if everything goes as planned (i.e. buyback guarantee holds and no loan originator defaults), non-current loans should be more or less a steady percentage of your portfolio. For me, non-current loans stay in the range 10-20% of my portfolio at all times. Since you have purchased far more loan parts than i have, your expected varience should be lower (better statistics). The percentage of non-current loans is dependent on the type of loans you usually purchase (i.e. your Autoinvest portfolio).
3) IMHO, that's a serious concern. Buyback guarantee is paid from the difference in interest rates that loan originators charge the borrowers and the rates they offer to us. Of course different loan originators have different recovery strategies and rates, but, generally, personal loans (that typically come with buyback guarantee) are unsecured and have very high rates of default and not very good chances of recovery; therefore, if a loan originator is unable to honor his buyback guarantee, we should expect high losses. However, as far as i know, until today all loan originators have always payed buyback principal + interest + late interest fees; whether this will change in the future no one knows for sure. We should always keep an eye on loan originators financial data and be ready to reduce our exposure to their loans should their financial position deteriorates.
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Post by littleinvestor on Aug 2, 2016 9:40:30 GMT
shafty you mention you opened your account 'a couple of months ago' , you have only little amount of interest - your account should generate +-125/month ? But reg. your question indeed I have the same experience, around 10-15% of my loans are not current (95% of my investment portfolio is buyback), even though my loan parts are bigger (X4) I had few buybacks and it all worked naturally - (at the 61th day I see buyback kicking in); e.g. loan 79442-01 I purchased 02.04.2016 for 100 EUR, 13% interest rate ; buyback happened on 23-06-2016, this is the extract for that loan (the borrower never made a payment): 2016-06-21 - Interest income Loan ID: 79442-01 0,76 2016-06-21 - Delayed interest income Loan ID: 79442-01 0,23 2016-06-21 - Interest income Loan ID: 79442-01 0,85 2016-06-21 - Delayed interest income Loan ID: 79442-01 0,47 2016-06-21 - Investment principal repayment Loan ID: 79442-01 19,56 2016-06-23 - Interest income on rebuy Rebuy purpose: rebuy_purpose_buyback Loan ID: 79442-01 0,62 2016-06-23 - Delayed interest income on rebuy Rebuy purpose: rebuy_purpose_buyback Loan ID: 79442-01 0,02 2016-06-23 - Investment principal rebuy Rebuy purpose: rebuy_purpose_buyback Loan ID: 79442-01 80,44 So in total I received 2.95 EUR interest, for keeping it 82 days; correct I think.
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Post by saraph on Aug 2, 2016 21:26:26 GMT
Your net annual return is really low. What percentage of your portfolio are 13.5% guarantees?
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homes119
Member of DD Central
Posts: 93
Likes: 19
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Post by homes119 on Aug 6, 2016 8:33:43 GMT
shafty you mention you opened your account 'a couple of months ago' , you have only little amount of interest - your account should generate +-125/month ? Unless he didn't put 15K in all at once
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Post by shafty on Aug 6, 2016 14:00:02 GMT
2) Exactly, if everything goes as planned (i.e. buyback guarantee holds and no loan originator defaults), non-current loans should be more or less a steady percentage of your portfolio. For me, non-current loans stay in the range 10-20% of my portfolio at all times. Since you have purchased far more loan parts than i have, your expected varience should be lower (better statistics). The percentage of non-current loans is dependent on the type of loans you usually purchase (i.e. your Autoinvest portfolio). Thank you for sharing your personal experience, it does help knowing I am not the only one
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Post by shafty on Aug 6, 2016 14:05:41 GMT
shafty you mention you opened your account 'a couple of months ago' , you have only little amount of interest - your account should generate +-125/month ? Unless he didn't put 15K in all at once Exactly, the funds where deposited in two batches and where invested relatively slowly. Also, on Mintos you get paid interest for the number of days you actually held the loan. So for example if you had the loan for 10 days before the installment due date, you only get 10 days worth of interest. Therefore my account should/will reach the expected monthly interest cashflows very soon.
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