Post by valueinvestor123 on May 31, 2017 12:27:53 GMT
The bad debts rate seems to be all over the place, over the years. Can I ask what the average is and how it compares in terms of risk to, say, Lendy or AC etc?
Does a 7% bad debt rate mean that if I invest 100k, I will not see 7k again (or in other words, subtract that %age from the yield, so 11% interest - 7% will leave me with just 4%. This seems extremely low, given the risks). Is it more like FundingCircle in terms of risk profile? (hate this outfit).
I am trying to work out whether to unwind or reinvest. The horrible/slow website is from last century and that alone puts me off. The collateral is often questionable and I don't always understand if it's worth anything. Lendy and the likes seem easier to grasp, at least from a quick glance.
Last updated – 30/04/2017
Note
Year
2017 2016 2015 2014 2013 2012 2011 2010
Arrears 1
0.00% 0.39% 1.19% 9.56% 0.36% 0.56% 0.00% 0.00%
Loans in default 2
0.00% 2.35% 4.88% 11.93% 12.48% 14.91% 8.43% 0.00%
Expected loss of actual defaulted loans 3
0.00% 0.55% 3.23% 7.43% 5.11% 7.54% 8.07% 0.00%
Expected lifetime bad debt rate 4
2.00% 2.00% 3.50% 7.50% 5.25% 7.65% 8.07% 0.00%
Does a 7% bad debt rate mean that if I invest 100k, I will not see 7k again (or in other words, subtract that %age from the yield, so 11% interest - 7% will leave me with just 4%. This seems extremely low, given the risks). Is it more like FundingCircle in terms of risk profile? (hate this outfit).
I am trying to work out whether to unwind or reinvest. The horrible/slow website is from last century and that alone puts me off. The collateral is often questionable and I don't always understand if it's worth anything. Lendy and the likes seem easier to grasp, at least from a quick glance.
Last updated – 30/04/2017
Note
Year
2017 2016 2015 2014 2013 2012 2011 2010
Arrears 1
0.00% 0.39% 1.19% 9.56% 0.36% 0.56% 0.00% 0.00%
Loans in default 2
0.00% 2.35% 4.88% 11.93% 12.48% 14.91% 8.43% 0.00%
Expected loss of actual defaulted loans 3
0.00% 0.55% 3.23% 7.43% 5.11% 7.54% 8.07% 0.00%
Expected lifetime bad debt rate 4
2.00% 2.00% 3.50% 7.50% 5.25% 7.65% 8.07% 0.00%