Post by RateSetter on Jan 23, 2020 10:22:16 GMT
Good morning.
Today we have published the monthly update of portfolio statistics and also the quarterly review of the projections that underpin the Coverage Ratios. We've published a RateSetter Notice, which is copied below for reference.
Today we have published the monthly update of portfolio statistics and also the quarterly review of the projections that underpin the Coverage Ratios. We've published a RateSetter Notice, which is copied below for reference.
The latest update of RateSetter’s portfolio statistics is now available at www.ratesetter.com/invest/statistics.
The quarterly update to the projections for the Provision fund inflows and outflows has been completed in line with our current methodology. There have been no changes to the way that we calculate these projections, just a refresh based on the latest available data on loans originated.
Following the quarterly review:
- The Interest Coverage Ratio decreased to 120%
- The Capital Coverage Ratio decreased to 261%
Key movements:
- We have increased Expected Credit Losses in the Consumer portfolio, which has had the effect of decreasing the Interest Coverage Ratio by 2%
- We have increased the Expected Credit Loss on some loans in the Property portfolio, which has had the effect of decreasing the Interest Coverage Ratio by 1%
- We have seen some minor improvements in the actual performance of the legacy business finance portfolio vs. expected, which has had the effect of increasing the Interest Coverage Ratio (by less than 1%)
Please remember, at RateSetter the Provision Fund mutualises the risk of each investment across the entire portfolio of loans, creating a collective investment effect. This means that your investment will perform in the same way, no matter which loans you are matched to.
The quarterly update to the projections for the Provision fund inflows and outflows has been completed in line with our current methodology. There have been no changes to the way that we calculate these projections, just a refresh based on the latest available data on loans originated.
Following the quarterly review:
- The Interest Coverage Ratio decreased to 120%
- The Capital Coverage Ratio decreased to 261%
Key movements:
- We have increased Expected Credit Losses in the Consumer portfolio, which has had the effect of decreasing the Interest Coverage Ratio by 2%
- We have increased the Expected Credit Loss on some loans in the Property portfolio, which has had the effect of decreasing the Interest Coverage Ratio by 1%
- We have seen some minor improvements in the actual performance of the legacy business finance portfolio vs. expected, which has had the effect of increasing the Interest Coverage Ratio (by less than 1%)
Please remember, at RateSetter the Provision Fund mutualises the risk of each investment across the entire portfolio of loans, creating a collective investment effect. This means that your investment will perform in the same way, no matter which loans you are matched to.
