benaj
Member of DD Central
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Post by benaj on Feb 25, 2019 11:57:11 GMT
Yesterday, I did XIRR on loans from one originator. The results was interesting. I only have 3 months Investing experience on Mintos, it seems the rebuy, buyback and actual repayment date affect XIRR a lot on a short term basis. There are so many rebuy and buyback actions within a month, and these short term loans get repaid and matched to new ones without predictable intervals.
On the day the last loan was repaid , the XIRR for this short term loan originator is above 12%, but the XIRR I did yesterday for this loan originator was 7%.
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0risk
Member of DD Central
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Post by 0risk on Feb 25, 2019 19:55:15 GMT
Yesterday, I did XIRR on loans from one originator. The results was interesting. I only have 3 months Investing experience on Mintos, it seems the rebuy, buyback and actual repayment date affect XIRR a lot on a short term basis. There are so many rebuy and buyback actions within a month, and these short term loans get repaid and matched to new ones without predictable intervals. On the day the last loan was repaid , the XIRR for this short term loan originator is above 12%, but the XIRR I did yesterday for this loan originator was 7%. I confirm this. I've just done XIRR for all of my completed loans. Some of my findings: - premature ending is by far the most frequent. And this impacts XIRR for better. - real XIRR was larger than average interest for all originators (with more than 50 loans). e.g: Mogo XIRR: 13.6%; weighted interest: 12.7% but: Placet XIRR: 10.1%; weighted interest: 10.0% EDIT: These are calculations done to my own loans (some 4700 of them), which are by no means a sample or representation of all loans. Besides, after posting this, I realized I had included all secondary market transactions I made. This might distort the results.
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Post by hugoncosta on Feb 26, 2019 11:11:14 GMT
I believe I know the why. I did that math for a loan that I bought 5 days from maturity. Using the XIRR, 4 days equaled to like 10% and 5 days equaled to 12%. The actual rate was 11.5%. So the difference has to come down to the hours. Mintos probably takes them into account, thus here I received ~4.5 days interest and not 5, and this might be a reason your XIRR calculations are "wrong".
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