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Post by jackpease on Dec 21, 2017 7:27:32 GMT
It's three months since FC changes its model to 'automatic' (changeover date was 18th September i believe).
For amusement i recorded my 'portfolio total' at that date - £6665 - and on the 18th December it was £6929. By my reckoning that is a equivalent rate of nearly 16%.
Do feel free to correct my crude maths but could at face value be seen as proof that the new FC is fab. Or the ne'ersayers might say that all it proves is that my legacy portfolio was gold plated...
The only thing against the 'legacy' argument is that over several years with FC i had never used autobid and tried various strategies as highlighted on this board and struggled to get more than 6% mostly due to mounting losses which i managed to stabilise about a year ago. For the record my loss total has dropped from £2057 to £1947 since changeover date.
I wonder if others are having similar success, or is this rose-tinted optimism misplaced?
Jack P
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Post by mikeyp on Dec 21, 2017 9:02:42 GMT
If the reduction in your losses had never been defaulted, your portfolio would have grown from 6775 to 6929, an increase of 2.3%, about 9.1% p.a. or 9.4% p.a. allowing for compounding. This seems about right if you have been lucky with any new defaults.
The average interest rate of the loans I've been allocated since 18 September, weighted by the principal still outstanding, is 10.6%. This seems high but it includes D and E rated loans that I wouldn't have chosen myself so I expect some defaults before too long.
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Post by shyinvestor on Dec 21, 2017 13:29:56 GMT
Wish I had your loans. Mine are averaging 10% on the nose.
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Post by jackpease on Dec 21, 2017 14:38:15 GMT
Wish I had your loans. Mine are averaging 10% on the nose. Well i'm sure you don't want my many years at 6% that preceded this - i don't believe it really is 16% and await to hear what the catch is! Jack P
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cobi
Member of DD Central
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Post by cobi on Dec 21, 2017 15:03:58 GMT
Isn't most of this gain from your old portfolio? What percentage has been recycled into the new autobid?
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Post by jackpease on Dec 21, 2017 16:41:08 GMT
Isn't most of this gain from your old portfolio? What percentage has been recycled into the new autobid? I haven't withdrawn anything since change day - i've just left it to do its stuff with interest reinvested and it appears to be doing better than in the months before. Jack P
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blender
Member of DD Central
Posts: 5,719
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Post by blender on Dec 21, 2017 16:58:25 GMT
Much of the improvement seems to be from the recoveries from the old portfolio, which exceed new losses by £100.
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Post by Deleted on Dec 21, 2017 17:04:37 GMT
so really nothing to do with the new process, just you undervalued your original figure compared to the "new" recovery.... If only you had lost more money originally you could now be doing even better if FC had managed to recover it....  Fantastic example and really well explained. I remember working a guy who only bought shares that had tanked, his arguement was, they had only one way to go, he was wrong  Merry Christmas Blender. |
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michaelc
Member of DD Central
Say No To T.D.S.
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Post by michaelc on Dec 21, 2017 17:07:23 GMT
Hi Jack
Thanks for sharing your figures. Over how many loans was that ?
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Post by jackpease on Dec 22, 2017 7:15:33 GMT
Hi Jack Thanks for sharing your figures. Over how many loans was that ? 333 businesses (576 loan parts) Jack P
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Post by valerieb on Dec 22, 2017 8:39:42 GMT
Having been withdrawing all repayments and selling parts for about a year, on 18th Sept my portfolio consisted of roughly 65% defaults, 35% my finest, 'taste the difference' loans about 5% of which I bought during the mid-Sept buying/selling frenzy. I've left the new system to do its thing without any interference from me. It's bought a few dodgy parts (property - how dare it!) but a reasonable spread of categories/risk, so far as the disgracefully poor information allows me to judge. No new defaults; a few of my better loans have fully repaid but overall my return has been increasing 0.1% per month - hardly seismic and only to 7.1% but given the horrors included amongst the defaults, I'm fairly pleased. There has been a significant increase in recovery payments so at the moment, and leaving aside my outrage at one or two of the defaults, I have to say that I'm Fairly Content to continue to just watch and wait.
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