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Post by dobbo on Jan 23, 2019 21:49:29 GMT
I've found on Zopa that it's lending bigger chunks of my money to C1-E markets than top grade markets. That's led to the defaults that happen having even more of an impact on my returns. Has anyone else found similar?
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aju
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Post by aju on Jan 24, 2019 0:25:19 GMT
Are these in the 2017 lending time zone perhaps - Zopa declared a while back that they got D-E mix wrong I think they said they changed it from 30% to a 10-15% mix. This entry in the Zopa blog refers to the lending changes that Zopa made in late 2017 but to be fair there are quite a few defaults appearing these days especially in ISA side. In my case I try to restrict lending to £10 loans and therefore have many more loans than Zopa would set by their standard 1% diversification. Sorry if this is not the reason I haven't checked my loans and default this month yet in detail. |
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Post by dobbo on Jan 24, 2019 1:16:24 GMT
I started with them in 2017, but didn't put much in as I was trying out P2P. Put some more in in 2018 and that's when Zopa decided to up the ante. A disproportionate amount of my £50+ loans were lower grade so that when the defaults came through it hit harder. Of the £10 loans, 23% were to C1-E markets. Of the loans £90+, 32% were to C1-E markets. Of my total defaults, though, 56% were where £90+ had been leant on my behalf. If I had lent £10 to these defaulters instead of £100, my overall defaults would be around half of what it now is.
Didn't know that they'd already tweaked their algorithm so thanks for the info.
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benaj
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Post by benaj on Jan 24, 2019 7:27:44 GMT
I've found on Zopa that it's lending bigger chunks of my money to C1-E markets than top grade markets. That's led to the defaults that happen having even more of an impact on my returns. Has anyone else found similar? I started Z in 2017. It wasn’t a great year for Zopa Plus. At the time, i thought I was prepared for the risks because I misunderstood the zopa default stats at the time as I didn’t have enough experience with p2p. My default is 4.4% out of all time zopa investment. I do see enough evidence Zope Plus 2018 performance is better. Zopa risk’s market page explains 20% will be invested in the D&E. Default happens, but there’s also recovery. The thing is, although I don’t have active loans with Zopa after selling out, I receives income bad debt repayment. Last November, Zopa had a 3rd party to buyback bad debts.
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