|
|
Post by redpete on Aug 3, 2024 14:32:58 GMT
My preference would be to split my initial £1k over at least 4 loans, maybe increasing when I get a better feel for the deals. Then I find out today that £1k is the minimum investment per loan. The minimum used to be £500 per loan. There was a discussion about the increase in this thread, starting around here: p2pindependentforum.com/post/442724/thread. Thanks Ace, interesting comments. I think I'll take my £1k out of AxiaFunder and put it into Lendwise / Loanpad / Unbolted. Might offer smaller returns but this investor is happy to prove his 'sophistication' by diversifying over dozens of loans instead of 1.
|
|
firedog
Member of DD Central
Posts: 367
Likes: 462
|
Post by firedog on Aug 7, 2024 8:26:31 GMT
New Housing Disrepair opportunity available this morning (Case ID: 5475).
Couple of new clauses added to the explainer we usually get with these, eg "This Investment Offer [has] an expected return of c 19-21% per annum … after adjusting for the credit risk of the law firm becoming insolvent" and "We also assume that the probability of the law firm default is 5% per year and the loss given default is 25.0%"
My italics.
|
|
p2pfan
Member of DD Central
Full-Time Investor
Posts: 781 
Likes: 889
|
Post by p2pfan on Aug 7, 2024 10:59:47 GMT
New Housing Disrepair opportunity available this morning (Case ID: 5475). Couple of new clauses added to the explainer we usually get with these, eg "This Investment Offer [has] an expected return of c 19-21% per annum … after adjusting for the credit risk of the law firm becoming insolvent" and " We also assume that the probability of the law firm default is 5% per year and the loss given default is 25.0%" My italics. Thanks for highlighting that. Useful. 1. So the return of "c 19-21% per annum … after adjusting for the credit risk of the law firm becoming insolvent"? I would have thought the return percentage would have been before factoring the risk of the law firm closing down? 2. "the loss given default is 25.0%" - what does that mean please?
|
|
|
|
Post by Ace on Aug 7, 2024 12:05:41 GMT
New Housing Disrepair opportunity available this morning (Case ID: 5475). Couple of new clauses added to the explainer we usually get with these, eg "This Investment Offer [has] an expected return of c 19-21% per annum … after adjusting for the credit risk of the law firm becoming insolvent" and " We also assume that the probability of the law firm default is 5% per year and the loss given default is 25.0%" My italics. Thanks for highlighting that. Useful. 1. So the return of "c 19-21% per annum … after adjusting for the credit risk of the law firm becoming insolvent"? I would have thought the return percentage would have been before factoring the risk of the law firm closing down? 2. " the loss given default is 25.0%" - what does that mean please?I presumed that they were estimating a 25% capital loss if the law firm defaults (becomes insolvent), but there is only a 5% chance of that happening. So, that reduces the average expected return by 1.25% (25% of 5%).
|
|
loadsahope
Member of DD Central
Posts: 84 
Likes: 44
|
Post by loadsahope on Aug 7, 2024 12:45:04 GMT
I'm not sure that its correct to apply that calculation because default would in effect trigger the loss, rather than reduce the return. So isn't it either -25% (law firm goes bust) or 19-21% (doesn't go bust).
|
|
p2pfan
Member of DD Central
Full-Time Investor
Posts: 781
Likes: 889
|
Post by p2pfan on Aug 7, 2024 13:47:19 GMT
I'm not sure that its correct to apply that calculation because default would in effect trigger the loss, rather than reduce the return. So isn't it either -25% (law firm goes bust) or 19-21% (doesn't go bust). I agree. Surely a more accurate calculation is a likely 100% capital loss (and no interest) if the law firm goes bust? Obviously it depends on the point at which the firm closes down and whether there have been any capital and interest payments at that point or not. Also depends on whether AF would bail out investors again or not, and to what extent.
|
|
firedog
Member of DD Central
Posts: 367
Likes: 462
|
Post by firedog on Aug 7, 2024 13:48:21 GMT
A key investment feature, which I believe is new, is that Axia has taken out a debenture on the funded law firm. This, apparently, would enable otherwise-viable claims to be transferred in the event of it being declared insolvent, so keeping the opportunity of getting paid for those cases. Obviously addressing the recent failure – and answers the question about why they don't think there will be a 100% loss even on insolvency
|
|
|
|
Post by Ace on Aug 7, 2024 14:29:05 GMT
I'm not sure that its correct to apply that calculation because default would in effect trigger the loss, rather than reduce the return. So isn't it either -25% (law firm goes bust) or 19-21% (doesn't go bust). You are correct that if you only invest in 1 loan and the law firm defaults they are estimating a 25% loss. However, if they don't default the estimated return would be higher than the 19-21% (roughly 1.25% higher), because the expected return (19-21%) takes account of a 5% chance of the firm defaulting. The average return would be reduced by 1.25% (assuming the estimates are accurate). It effectively says that, if you had 20 such loans to 20 such law firms, 19 of them would return an annualised 19-21% profit plus 1.25%; one loan would return a 25% loss. On average you would get a 19-21% annualised profit across all 20 loans. Of course, that calculation is somewhat mute as we don't have 20 law firms to lend to.
|
|
|
|
Post by Ace on Aug 12, 2024 17:50:32 GMT
Another HDR loan tranche repayment has been made today. It was from the 2nd law firm.
It was the 4th tranche repayment for #4647. This tranche had a profit of 28.55%. The average profit for repaid cases in this loan is 21.9% (21.34% XIRR ).
Returns so far from all HDR loans (all 4 law firms, including the one in administration)
The overall XIRR for the repaid portions of my HDR case investments is now 3.71%. (This should steadily rise as repayments from the loans in good standing are received, baring any further "issues").
Assuming an equal amount was invested in each of the 15 HDR loans that have received at least 1 tranche repayment so far, the XIRR is 4.03%. For each £1k equal investment (£15k across the 15 loans), £7,967.61 of capital and £394.66 profit (£8,362.27 total) would have been paid so far.
Returns so far from all HDR loans in good standing(I.e. excluding those from the law firm in administration)
The overall XIRR for the repaid portions of my HDR case investments is now 21.73%.
Assuming an equal amount was invested in each of the 8 HDR loans that have received at least 1 tranche repayment so far, the XIRR is 21.66%. For each £1k equal investment (£8k across the 8 loans), £2,043.80 of capital and £394.66 profit (£2,438.46 total) would have been paid so far.
|
|
|
|
Post by johnwick on Aug 13, 2024 20:43:00 GMT
Hello all
New to the forum.
Interested in Axia and the HDR litigation. , from reading the above there are many of you versed with this platform so hoping you could shed some light?
What’s been the longest / shortest time to receive your money back + profit/earnings.
If you don’t mind, say, on a £1000 what’s been the ROI?
Thanks people.
|
|
firedog
Member of DD Central
Posts: 367
Likes: 462
|
Post by firedog on Aug 13, 2024 21:05:07 GMT
Hello all New to the forum. Interested in Axia and the HDR litigation. , from reading the above there are many of you versed with this platform so hoping you could shed some light? What’s been the longest / shortest time to receive your money back + profit/earnings. If you don’t mind, say, on a £1000 what’s been the ROI? Thanks people. has given some pretty detailed feedback on the returns as they come in. The Track Record page on AxiaFunder's website also shows graphically how the returns have come in over time. Axia Funder HDR investments pay back in roughly 10 equal instalments, but it's difficult to say accurately when these will complete because it will vary each time. The latest investment opportunity states that you can expect your investment and return to be repaid gradually between 9 and 18 months from the opportunity being funded. Maybe a bit ambitious in my experience of other cases, but not by much. (My oldest HDR investment that hasn't yet paid anything back yet was funded in November, 2023.)
|
|
|
|
Post by Ace on Aug 13, 2024 21:21:09 GMT
Hello all New to the forum. Interested in Axia and the HDR litigation. , from reading the above there are many of you versed with this platform so hoping you could shed some light? What’s been the longest / shortest time to receive your money back + profit/earnings. If you don’t mind, say, on a £1000 what’s been the ROI? Thanks people. has given some pretty detailed feedback on the returns as they come in. The Track Record page on AxiaFunder's website also shows graphically how the returns have come in over time. Axia Funder HDR investments pay back in roughly 10 equal instalments, but it's difficult to say accurately when these will complete because it will vary each time. The latest investment opportunity states that you can expect your investment and return to be repaid gradually between 9 and 18 months from the opportunity being funded. Maybe a bit ambitious in my experience of other cases, but not by much. (My oldest HDR investment that hasn't yet paid anything back yet was funded in November, 2023.) I would add that none of the HDR loans have fully repaid yet. The earliest first repayment tranche (one tenth of capital plus associated profit) was made after about 7 months. The latest first repayment tranche so far was made after about 11 months. The percentage profit for each tranche repayment is stated on the stats page (linked to by firedog in the quoted post above).
|
|
|
|
Post by johnwick on Aug 14, 2024 8:59:25 GMT
Thanks Ace.
Interesting avenue for p2p. I think the website could do with a refresh mind.
|
|
firedog
Member of DD Central
Posts: 367
Likes: 462
|
Post by firedog on Aug 14, 2024 9:19:18 GMT
Thanks Ace. Interesting avenue for p2p. I think the website could do with a refresh mind. New opportunity available today, if you're interested.
|
|
|
|
Post by Ace on Aug 16, 2024 20:41:31 GMT
Another HDR loan tranche repayment has been made today. It was from the 2nd law firm.
It was the 1st tranche repayment for #5155. The 8th loan to this law firm with at least 1 repayment. This tranche had a profit of 11.76%. The average profit for repaid cases in this loan is 11.76% (15.54% XIRR ).
Returns so far from all HDR loans (all 4 law firms, including the one in administration)
The overall XIRR for the repaid portions of my HDR case investments is now 3.73%. (This should steadily rise as repayments from the loans in good standing are received, baring any further "issues").
Assuming an equal amount was invested in each of the 15 HDR loans that have received at least 1 tranche repayment so far, the XIRR is 4.11%. For each £1k equal investment (£16k across the 16 loans), £8,067.61 of capital and £406.42 profit (£8,474.03 total) would have been paid so far.
Returns so far from all HDR loans in good standing(I.e. excluding those from the law firm in administration)
The overall XIRR for the repaid portions of my HDR case investments is now 21.65%.
Assuming an equal amount was invested in each of the 9 HDR loans that have received at least 1 tranche repayment so far, the XIRR is 21.43%. For each £1k equal investment (£9k across the 9 loans), £2,143.80 of capital and £406.42 profit (£2,550.22 total) would have been paid so far. |
|
