aju just for the defaults, if you added up (column M + column N ) / Column J, you will find it does not return the same value as Column X, but it's nice to see how much these borrowers making bad debt repayment since default
I'm not sure that is correct anyway as I think column X is only a reference of repaid Capital i.e relative to the Lent amount.
I believe that Columns X is only relevant when compared to the repaid column its just an indicator of how much capital has been repaid. You are really comparing the outstanding
Your calculation does mitigate of course default losses to degree. In other words once a default has occurred then any interest or capital that may be recovered reduces the loss factor of any default. As you say it is useful to be able to do this and I have a spreadsheet that does use this value to show me my £loss values from that perspective.
One of the things that I have done since day one is to assume the defaults are lost money and then just focus on the true returns (after all losses) or to put it more bluntly "what I end up with in my pocket".
Its still interesting though I have to admit.
Some examples:
All time Invest loans:Amount lent on defaults and settled loans :
£487.80Amount Outstanding on defaulted and settled loans:
£267.11 Int Received on defaults & settleds :
£85.33"Overall Loss = Outstanding - Interest"
:
£181.77That's not that bad considering that the interest received on the 4463 loans that contributed to those default amounts was in the region of
£4000. This is quite a mature loanbook though. ( 8+ years ) but that means that I'm still up by
£3500. The loan splits on this are Plus 14%, Core 45% and Classic(SG) 1%, mind you this is dwindling down as I am drawing rather than relending on this account.
In my ISA which is less than 2 years old but has more loans and much more overall value is not quite so good.
Isa loans:Amount lent on defaults and settled loans :
£738.49Amount Outstanding on defaulted and settled loans:
£667.53 Int Received on defaults & settleds :
£38.03
"Overall Loss = Outstanding - Interest"
:
£629.50
The earnings for the 22 months were £2100+ so the overall return after defaults is nearer £1500 again not bad for a much less mature concern. The splits on this one are Plus 20%, Core 76% and classic(SG) 4%. There almost double the loans on this account that generated this value so the higher defaults level is quite normal I feel.
