Post by chielamangus on May 1, 2014 13:06:26 GMT
It being the the first of the month when I compare performance across the P2P platforms I use, I thought members might be interested in the results. I calculate rate of return using XIRR in Excel, using deposits, withdrawals, and account balance at the end of the month -the simplest and most accurate approach.
Funding Circle. IRR to date 6.8 per cent (also for the past month). This compares with a nominal gross interest rate of 10.4 per cent calculated by FC, and an FC estimated net return of 7.9 per cent after fees & defaults. The FC calculation takes no account of dead money time while auctions and loan arrangements take place (or not, as sometimes happens).
Assetz capital. IRR to date 7.5 per cent. This is despite having no loan parts under 10 per cent. Again, the answer lies in all the dead money time involved in the auctions and waiting for drawdown. Also this reflects the lag between investment and returns as the account has been running only 4 months.
Ratesetter. IRR to date 2.8 per cent. This compares with a weighted average nominal rate of 4.3 per cent based on the amounts lent at different rates on different loan terms. I assume most of this discrepancy is due to the investment-return lag - the account has been running less than 4 months
Wellesley. No IRR estimate possible as most of the interest will be paid at end of term. Weighted AER 5.4 per cent.
Taking account of all the work involved for FC, and the default risks (which are just becoming more evident in my loanbook), the return hardly seems adequate. Assetz has a better return/work balance and hopefully much lower risk. But my "best buy" is Wellesley because it makes no demands on my time.
Just submitted for information - I'm not trying to make a point about the virtues of different platforms since most here will have different priorities from me.
Funding Circle. IRR to date 6.8 per cent (also for the past month). This compares with a nominal gross interest rate of 10.4 per cent calculated by FC, and an FC estimated net return of 7.9 per cent after fees & defaults. The FC calculation takes no account of dead money time while auctions and loan arrangements take place (or not, as sometimes happens).
Assetz capital. IRR to date 7.5 per cent. This is despite having no loan parts under 10 per cent. Again, the answer lies in all the dead money time involved in the auctions and waiting for drawdown. Also this reflects the lag between investment and returns as the account has been running only 4 months.
Ratesetter. IRR to date 2.8 per cent. This compares with a weighted average nominal rate of 4.3 per cent based on the amounts lent at different rates on different loan terms. I assume most of this discrepancy is due to the investment-return lag - the account has been running less than 4 months
Wellesley. No IRR estimate possible as most of the interest will be paid at end of term. Weighted AER 5.4 per cent.
Taking account of all the work involved for FC, and the default risks (which are just becoming more evident in my loanbook), the return hardly seems adequate. Assetz has a better return/work balance and hopefully much lower risk. But my "best buy" is Wellesley because it makes no demands on my time.
Just submitted for information - I'm not trying to make a point about the virtues of different platforms since most here will have different priorities from me.
long draw down schedules.........
.