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Post by parchon on Nov 14, 2017 14:50:31 GMT
Hello,
I've decided to exit Bondora, but I am wondering how I should do it. Should I just leave everything as it is and wait 4-5 years until all loans mature or should I sell some of the loans. Is is a good idea to sell current loans? What about delayed and defaulted ones? I believe current loans are my only chance to exit break-even or small in small profit so I don't think its wise to sell them with premium. What is your opinion ?
Thanks
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Sr. Lobo
Member of DD Central
Posts: 63 
Likes: 17
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Post by Sr. Lobo on Nov 14, 2017 18:34:23 GMT
I've first sold defaulted loans -big discount needed- then you can shell current loans with long payment history at pair or small benefit or keep and shell only defaults.
Don't run to shell current loans, first get rid of all the junk.
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Post by coolrunning on Nov 14, 2017 20:24:51 GMT
Hello, I've decided to exit Bondora, but I am wondering how I should do it. Should I just leave everything as it is and wait 4-5 years until all loans mature or should I sell some of the loans. Is is a good idea to sell current loans? What about delayed and defaulted ones? I believe current loans are my only chance to exit break-even or small in small profit so I don't think its wise to sell them with premium. What is your opinion ? Thanks Decent loans will sell in 3-5% premium range. Overdues difficult to move unless substantial discounts. Defaults : EE will sell with around 85% discount, others harder (bigger discounts)
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fric
Member of DD Central
Posts: 200
Likes: 80
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Post by fric on Nov 15, 2017 7:59:31 GMT
Yeah, when I saw that there are loads of loans at ~90% discount i thought to myself - is it it even worth it selling at these prices? Might as well leave them and wait for a miracle.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
Likes: 897
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Post by JamesFrance on Nov 15, 2017 8:58:00 GMT
I have kept nearly all mine and in about 3 months from now I will have withdrawn all the money I deposited. I will still have about 4000€ in current loans and 8500€ in defaults which are recovering about 1000€ in a year. I think it is worth waiting, but it depends on how long you have invested there as the rates are much lower today.
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Post by parchon on Nov 15, 2017 10:46:06 GMT
I've started investing September last year and adding funds from time to time. I don't see a point in selling defaulted loans for 85% discount. According to Bondora life stats, I should get 30% of the principal from defaulted loans. Yield to maturity based on my stats says 10.93%...should I believe this number at all ?
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
Likes: 897
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Post by JamesFrance on Nov 15, 2017 12:53:40 GMT
Yield to maturity depends on what may happen in future and you can change it by putting in your own expected recovery percentages. Click on the symbol beside the figure they suggest.
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Post by coolrunning on Nov 15, 2017 16:46:10 GMT
I've started investing September last year and adding funds from time to time. I don't see a point in selling defaulted loans for 85% discount. According to Bondora life stats, I should get 30% of the principal from defaulted loans. Yield to maturity based on my stats says 10.93%...should I believe this number at all ? I would not advise selling at 85% discount, I just meant that if you want to exit this is around the discount to be thinking of. As for "I should get 30% of the principal from defaulted loans", all I can say is that is not my experience. Concerning "Yield to maturity", follow JamesFrance's comment.
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Post by parchon on Nov 15, 2017 19:56:42 GMT
I don't know what should the expected recovery percentage be. My portfolio stats says it should be 35%. If I set it to 0%, yield is 6.62%, so at least i shouldn't be losing any money if I leave the portfolio as it is.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
Likes: 897
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Post by JamesFrance on Nov 16, 2017 7:26:13 GMT
That will change as your loans continue to default before they are fully repaid. There is no way of knowing the final result.
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Post by coolrunning on Nov 16, 2017 11:02:15 GMT
I don't know what should the expected recovery percentage be. My portfolio stats says it should be 35%. If I set it to 0%, yield is 6.62%, so at least i shouldn't be losing any money if I leave the portfolio as it is. You could be guided by the collective view of the 2nd market buyers. If they are a better judge than Bondora (likely to be the case) then an EE default is worth around 15% and the others around 10%.
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miso
Posts: 25
Likes: 8
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Post by miso on Nov 16, 2017 11:23:05 GMT
You can try packing default loans with green loans into small portfolios where total discount will be less than those disastrous -85% when sold separately. Eg packing 50 Euro green loans with 10 Euro red and selling with 10% discount might look attractive for someone and yields better results than selling the greens for 1-2% margin and the red at 15% face value.
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shimself
Member of DD Central
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Post by shimself on Nov 16, 2017 13:23:43 GMT
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Post by bracknellboy on Nov 16, 2017 13:31:03 GMT
is that a particularly apposite post ? :-)
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shimself
Member of DD Central
Posts: 2,563
Likes: 1,171
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Post by shimself on Nov 16, 2017 14:06:25 GMT
is that a particularly apposite post ? :-) I tried to put a particularly amusing gif of the road runner heading for the hills, but even more appositely, it vanished
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