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Post by markaldrich on Jun 24, 2018 18:56:28 GMT
So I've received a recommendation to try Mintos and it certainly looks interesting and have put a toe in the water with 500 pds. My current thinking is stick to those with buy back but have picked up that not every lender is good for their word (Eurocent has cropped up on my research). So I'd appreciate thoughts on 2 things from those experienced in Mintos. Firstly what filters do you use and recommend? I'm not looking for high risk/return so am quite easily satisfied on that score (as pension is only doing 3% in stocks!). Secondly which lenders would you recommend and have a good track record (offering buy back) and which should I steer clear of? Thanks all,
Mark
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ptr120
Member of DD Central
Posts: 1,197 
Likes: 1,346
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Post by ptr120 on Jun 24, 2018 19:13:23 GMT
Every loan issuer except Eurocent has always honored buybacks, to date. I filter for buyback, fully amortizing, current, less than 24 months, and an interest rate above my target IRR. You might also want to consider platform diversity and look at other platforms. Assetz is among my favorites with their 30day QAA at present.
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Post by markaldrich on Jun 24, 2018 19:52:02 GMT
Thanks yes am already trialing Assetz cheers
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fric
Member of DD Central
Posts: 199
Likes: 79
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Post by fric on Jun 25, 2018 5:57:04 GMT
I personally stick to loans issued in European Union (and some from like Georgia etc). I totally avoid Africa and others. Sure, a company in EU can go bankrupt and we can loose money, but I still have higher belief that bankruptcy procedures are better and more transparent in EU. Same goes for accounting, annual reports and such - the standards are probably higher in EU, which means its less likely they are hiding something (ofc its still possible).
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Post by markaldrich on Jun 25, 2018 6:10:30 GMT
That’s a useful tip thanks
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Post by Ace on Jun 25, 2018 7:42:01 GMT
There was some interesting work here about which are the better lenders. |
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Post by Butch Cassidy on Jun 25, 2018 8:12:53 GMT
I have no complaints buying Lendy Georgian loans for the last couple of years (denominated in Euro avoiding hassle of currency exchange); they offer 12-14% with 30 days+ durations, also benefit from sporadic cash back offers (1.5% last time) the buy back has always been honoured so far. I buy manually but can also be set up via auto lend I believe - Good Luck with whatever you finally decide.
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Post by southseacompany on Jun 25, 2018 9:04:38 GMT
I would suggest all of them. This is not meant to be facetious; rather, I think that overall diversification is more important than picking the best originators. Even the most solid looking company can fall victim to internal fraud, unexpected problems with its regulators, or some other event that you have no way to predict. Besides diversification, the best way to reduce risk is keeping debt duration short (i.e. sticking to relatively short term loans). On Mintos and other P2P loan sites, the "yield curve" is relatively flat, i.e. investors are not compensated particularly well for tying up their money for multiple years.
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Post by markaldrich on Jun 25, 2018 21:08:03 GMT
Really helpful. One thing I don’t quite get is why Mintos rates are so much higher than UK. Coming to this game late it feels like I have missed the hay day of P2P in UK with everyone complaining about the rates (though look a damn site better than other investments) however Mintos seem still a notch above - does this reflect higher risk or just simply a different market? Either way looking forward to a toe in the water when my deposit lands later this week.
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kulerucket
Member of DD Central
Posts: 336
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Post by kulerucket on Jun 26, 2018 22:41:02 GMT
I would suggest all of them. This is not meant to be facetious; rather, I think that overall diversification is more important than picking the best originators. Even the most solid looking company can fall victim to internal fraud, unexpected problems with its regulators, or some other event that you have no way to predict. Besides diversification, the best way to reduce risk is keeping debt duration short (i.e. sticking to relatively short term loans). On Mintos and other P2P loan sites, the "yield curve" is relatively flat, i.e. investors are not compensated particularly well for tying up their money for multiple years. My thought exactly, however I see advantages to diversification across loan length as well. If the overall trend in returns is downwards, then I like the fact that I have some longer term loans at 14% when the market has dropped to 12%. This happened for instance of Twino where I only have longer term 13% loans left. I don't believe that there will be any warning signs of an originator about to collapse so you could still be stuck whatever duration loans you have. Best spread thinly across originators so that if one collapses it might only take a few months to cover the loss in interest from all of the other originators.
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Jun 26, 2018 22:55:10 GMT
Really helpful. One thing I don’t quite get is why Mintos rates are so much higher than UK. Coming to this game late it feels like I have missed the hay day of P2P in UK with everyone complaining about the rates (though look a damn site better than other investments) however Mintos seem still a notch above - does this reflect higher risk or just simply a different market? Either way looking forward to a toe in the water when my deposit lands later this week. Most euro platforms have higher rates than the UK. 12%-14% is common. I think it's mostly down to a newer market. Risk is very hard to judge IMO so I have just opened many euro accounts with different platforms and have spread across them thinly. Most have very little management due to autoinvest and because I spread so thinly I don't care much about the quality of individual loans. I just care about overall platform performance.
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Post by markaldrich on Jun 27, 2018 5:54:02 GMT
Thanks - another interesting strategy
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Post by nellerdk on Jul 1, 2018 20:42:17 GMT
I diversify as much as possible, but I only buy "buyback guarantee" loans.
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Post by markaldrich on Jul 1, 2018 20:47:12 GMT
Impressed so far but nervous about putting in too much when not regulated
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Jul 2, 2018 7:31:11 GMT
Impressed so far but nervous about putting in too much when not regulated Regulation closed Collateral so not much benefit to investors there!
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