kulerucket
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Post by kulerucket on Jan 18, 2018 22:09:40 GMT
On the other hand, by giving investors 5% up front, they basically destroy all competition and screw up most people's platform-wide diversification. It would hardly be just as effective if they simply competed with Mozipo and others. Personally I went all in on 14% 60m cashback loans with the intention of working to re-balance my diversification slowly afterwards. There is no way I'm going to do the same again any time soon. I don't think this new offer will attract much investment as those who were game would have already maxed out.
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kulerucket
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Post by kulerucket on Dec 4, 2017 0:10:38 GMT
With annual default rate around 35% and 20% interest rates you need 40% recovery rate to break even an 70% recovery rate to earn net 10%. What recovery rate do you expect on your portfolio? I don't have any expectations I'm just monitoring the behaviour. The point of doing this is to see what happens. Although the rate of default has not improved so far, I still don't expect this will continue at 35% in the following year. If I did, I would just sell everything off. The initial loans were a random selection but those that remain have already performed better than the average so I still expect the rate of defaults to drop off at some point.
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kulerucket
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Post by kulerucket on Dec 2, 2017 19:22:41 GMT
How does everyone cope with managing so many platforms? Out of the list I gave, the ones you use +Collateral need the most active management. The rest are pretty passive.
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kulerucket
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Post by kulerucket on Dec 1, 2017 22:57:18 GMT
Yesterday was 1 year since I started and it is now approaching 6 months since I stopped reinvesting so I though I would write an update to my original post. Since stopping the portfolio manager, I have now withdrawn 100€ or around 20% of my initial deposit. The distribution of the remaining funds looks like this: Current | 1-7 | 8-15 | 16-30 | 31-60 | 61-90 | 91-120 | 121-150 | 151-180 | 181+ | 52.3% | 3.8% | 1.1% | 3.6% | 6.8% | 2.1% | 3.6% | 4.6% | 6.2% | 15.9% |
Interest earned: 101€ In default: 172€ Contrary to my belief that the interest earned would catch up with defaults by now, it is still well behind. This is due to the fact that even after the loans making 0 payments defaulted, defaults have continued at the same rate as before with loans previously making up to 8 payments on time. They just keep coming. All but 2 of my HR loans have now defaulted and no F grade loans have made it though. Apart from 2 near full recoveries in the summer, I have seen virtually no recovery since. The average has been about 0.15€/month since July. Most defaults are still "Waiting for Court Order" or "Court Order Filed". Interestingly, around half of my defaults are home owners although this seems to make little difference to the recovery. I expect it will after several years when the courts decide to wake up but not yet. Nevertheless, my Bondora calculated return is still 21% which apparently puts me in the top 15%. This rate is steadily declining as the missed principal contribution for default loans increases over time. I will be continuing on with my slow exit but I'm glad I stopped when I did.
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kulerucket
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Post by kulerucket on Nov 30, 2017 20:29:04 GMT
Good thread. I basically take a scatter gun approach. Currently I am migrating towards easy exit ones because I plan to take a chunk out next June.
EUR
Mintos 15.5% reduce Swaper 15.4% hold (interest comes out) Twino 7.6% hold Grupeer 5.5% hold ViaInvest 4.9% increase Omaraha 4.4% reduce Robocash 4.1% increase Linked 1.5% increase Crowdestate 1.5% increase Estateguru 1.5% increase Lenndy 1.3% hold Bondora 1.0% exiting Flender 0.8% increase Viventor 0.8% exiting Finbee 0.6% hold Iuvo 0.3% hold Investly 0.2% exiting
Euro Total: 66.9%
GBP Ablrate 6.9% hold FundingSecure 6.9% hold Collateral 6.7% hold MoneyThing 5.3% hold WiseAlpha 3.5% hold Lendy 2.2% hold PropertyMoose 1.5% exit
GBP Total: 33.1%
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kulerucket
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Post by kulerucket on Nov 22, 2017 14:37:24 GMT
They have a hard time to find the developpers for their it projects They are not the only ones...
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kulerucket
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Post by kulerucket on Nov 20, 2017 13:32:09 GMT
Started March 2017
Pros - Good loan availability - always a loan meeting my criteria when I need one - Good loan rates - 15% is achievable if you take on long term loans - Diverse - long/short term / invoice/car/mortgage/personal loans etc - Payment guarantee on many - Good performance so far - not one troublesome loan - Some financial reports available on originators (however not on Lenndy itself, and the statements provided are just the summary numbers and not signed/audited copies of the official versions).
Cons - Newish platform - higher risk - No auto investor - it's annoying but if implemented, it might drive loan availability so it's hard to judge whether I should moan about this or not - Paysera based account (not so bad really) - No fine control over email notifications - I'm still not entirely comfortable and have some trust issues due to the sudden move from Lithuania to Latvia. I felt that it wasn't really explained and makes me nervous. - cannot control language in configuration - it always defaults to where I live (German), and not my first language (English).
Summary: Go for it, but don't put too much in.
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kulerucket
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Post by kulerucket on Nov 17, 2017 23:44:27 GMT
I see your point about the autoinvestor although probably it would be better to have control based on both the buyer and seller credit rating. It looks like you are in the same 3 defaulted loans from the same buyer/seller as I am. I'm also looking at a loss if anything under 75% is recovered and the prognosis looks a lot worse than that. In this case they are both AA rated so it wouldn't have helped. Fortunately it is only a small proportion of my investments overall and I have cashed out all other funds since then.
The biggest annoyance is that there was no possibility to exclude companies that you have already funded so I managed to pick up all three of their invoices. Also due to the over subscription of most loans, I found it impossible to break the investments into small enough chunks to avoid risking more than my total profit on each loan and to stay invested at the same time.
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kulerucket
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Post by kulerucket on Nov 17, 2017 14:58:27 GMT
I suppose it seems fair in some ways but putting it on hold is just forcing the current owner to take on the risk when they might not want to. If someone wants to sell and someone else wants to buy then that transaction shouldn't be blocked. It seems the same as a companies blocking sales of their stock in the lead up to publishing their annual report because the results might be bad.
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kulerucket
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Post by kulerucket on Nov 17, 2017 12:58:02 GMT
Even though I also stand to make a loss given the current status and have more or less exited the platofrm, I would have to agree with Investly on this one.
It doesn't make any sense to place a reduced value on a defaulted loan until the recovery process has run and it is clear what the level of recovery will be. I don't know of many platforms that start to make deductions on value at the point of default. By definition, a default just means the full amount is due not that the amount is lost. It would be very difficult to accurately predict the recovery based on a particular loan in default. You could average across the loanbook history, but this figure is not likely to match the end result for a particular loan because it can be anything between nothing and everything. In the end you can get wildly different answers depending on the numbers you put in.
Also the default is against the debtor and this is the claim that we are taking on. It is only after recovery from them fails that the claim against the seller comes. So to me it makes perfectly good sense. Its the same as if you lend to a company and there is also a personal guarantee, you are lending based on the strength of the company paying, not the strength of the personal guarantee (the backup plan).
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kulerucket
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Post by kulerucket on Nov 17, 2017 8:12:41 GMT
I don't understand why it is necessary to block sales of shares on these properties which the re-valuation is on-going. Either the value will go up or down and it's up to the free market to decide which way they think it will go and buy/sell accordingly.
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kulerucket
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Post by kulerucket on Nov 17, 2017 8:07:10 GMT
I keep reinvesting received payments to 1 month loans only. So I should soon be ready for sharp exit if need be.. I think that if Twino went bad (a la Eurocent style) tomorrow, I would rather be holding on to the loans where the borrowers have already paid off half of a 12 month loan than hold a bunch of 1 month loads with a 35% buyback rate. Also, at the moment, it is a lot easier to sell old 12-13% loans than new 10% ones regardless of the loan period.
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kulerucket
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Post by kulerucket on Nov 17, 2017 7:59:43 GMT
I bought at 2.72 when it was only 1% exchange rate fee. It's a bit annoying but I understood the risk at the time. Still, 17% goes a long way and even with the big drop in value, I'm still close to breaking even (including 2.1% exchange back). It was worth the gamble for a small percentage of my portfolio. If it recovers, I can still make a killing.
I would consider topping up but the exchange fees are too high. At 2.1% each way you are looking at <13% if you leave it for 1 year, so you would have to leave it several years to make it worthwhile.
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kulerucket
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Post by kulerucket on Nov 17, 2017 7:40:00 GMT
Are you an EU citizen that's travelling to Brazil or are you actually living there? as far as I know, most EU platform only accept EU citizens Usually it's residency not citizenship that is important but I guess that's what you meant from the context.
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kulerucket
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Post by kulerucket on Nov 16, 2017 20:03:00 GMT
I like them. They are one of the few Euro platforms that make financial reports available: linkThank you. It's funny that I can't access the site from where I am (Brazil). I get an error message (409 Conflict. The server encountered an internal error or misconfiguration and was unable to complete your request..). If you want me to send them to you, PM me your email address.
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