Not sure if "default" is the right term with debentures, but perhaps because they haven't had any...(that I'm aware of anyway and I've invested in over 20 deals now. One of my windfarms is underperforming slightly but another is overperforming so I'm happy)
That link is currently dead. Given that one of the RHI dependent debentures to the tune of £4 mn has been overdue for repayment since January with no visible prospect of redemption, perhaps we should not be surprised.
Post by GentlemansFamilyFinances on Aug 10, 2018 12:07:20 GMT
I think that since Abundance is a bit different from a lot of the other P2P / P2B businesses, you can't compare defaults in the same way. To date there have been no defaults - but that doesn't mean that an investment which is planned to run 20 years isn't going to in 10 years time.
I think that the best way to use Abundance is to consider defaults in your expected returns and use the Marketplace to diversify. I have invested in new issues but there doesn't seem to be as many recently - so I have picked up most of my debentures from the markets and I hold around 20 or so with no more than 10% in each one. I'm still buying ones which I like and I am underweight in.
Long time investor in P2P Lending - I've seen the good, the bad and the ugly! I have a blog that you can have a look at - covers personal finance, family life and our family journey towards FIRE. gentlemansfamilyfinances.com/ My blog contains referral links which you should be aware of.
There have clearly been some problematic loans (probably 3-4 out of around 20+ offerings). No actual defaults yet, but definitely at least a couple which are not yet out of the woods. Note also that some of these loans run for nearly 20 years and there can be an incestuous like quality to the relationships between some loans. All of these add up to a loan book which isn't very well diversified IMO and new loans tend to be infrequent.