A* defaulters

Update on A* defaults

For me
Invest Account
as above A* on Pre-Safeguards so written off a long while ago not really relevant here.

ISA account
2 A*  Both 2.34% ( one not paid anything since April 2018, the other since December 2017)

Curiously the comments for the 2nd one says "Customer has Sequestration" as of 15th October so perhaps that will start Paying soon who knows.

Edit Update: Not sure that the sequestration is in favour of my loan thought probably not!.

For Mrs Aju 
Invest account

0 A* (There is one in collections going bad hasn't paid anything since 31/7)
ISA account

3 A* (2 of these are also in my ISA as well! the 3rd one hasn't paid anything since 6/6)

There is also one in collections that is marked up recently this month as "In Financial difficulties"

Not sure that helps much all are £10 loans though as a result of my strategy to only lend in £10 loans. That said sometimes I made a booboo and lent higher values for a short time. 

HTH

That's some serious defaults, mind you I opted for a measured approach (my notion although many would say too cautious) and kept my Plus to splits at 10-20% depending on whether classic cover was a factor in our accounts.

The problem I have with running things down is that you get less and less of the relend effect and ultimately leaves the account in bad loans but I understand the sentiments. Mind you I do have some concerning months and some less so. My main criteria is that as long as I up on the deal - more than the inflation by a couple of points if possible then I'm a happy person. That said there are no guarantees in any of this stuff.

I am currently feeding my return in Invest across to ISA, for tax purposes mainly, and have noticed how the returns are pulled down more by the defaults that obviously cannot be moved. That said I usually try to write off all defaults in my mind and then ignore them moving forward. (I keep a view on the XIRR on a month on month basis as best I can and when its accurate and ignoring it when it way out of the park as can be the case when new lending is regular. In Excel 2007 any way.

I accept that point, but with my net results dropping month after month after month in 2018, that's what I decided to do. Going for the "I'm sure the re-lend effect will save me in the end, I'll give it a year or two more" could have lead to even more pain. No way to tell. Just like when you're in shares/funds and they drop (say) 20%. Some will say "it's sure to re-bound, stick with it", so you do and watch it go lower and lower and lower...  Clearly, no way to tell in advance what'll happen. My view is - go with my gut and accept any failings are ultimately down to my decisions.

Some interesting stats in these posts.  Of course, the ISA can be a mix of Core and Plus and I suspect that the % split will skew the figures a lot.


My figures are 3448 loans (90% Core and 10% Z+) with 22 defaults.  Default rate 0.64%.  Cash lost in defaults (no safeguard) as % of cash invested = 0.93%


So my high Core % seems to bring considerable protection (for the moment).

But you do have to withdraw your investment at some point, yes? Are you planning to sell all your loans when that time comes rather than switch off relend and have the funds dribble back over the the course of 5 years?