JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Dec 16, 2014 8:37:26 GMT
It seems that in future all automatic investment will be done by Bondora Rating, which will set the interest rate by the expected risk, with a target return of I think 12%.
From discussion on the Bondora forum it seems that there could be no choice of country of the borrower. Unfortunately nobody from Bondora takes part in the forum now apart from the occasional announcement. They are also registered on this forum but rarely even log in. This withdrawal of any discussion is extremely unfortunate and the level of trust seems to be gone. If I cannot choose the country I will definitely withdraw all repayments and stop future investment, as I have experienced extremely high default levels whenever a new country is added.
It is very difficult to have any confidence in the rating system when the loan to the CEO, which many of us took part in at 12%, to buy a car, which has never been more than a day or two late, now has a rating of HR (high risk). Maybe there is something not obvious to justify the rating, but we are not to be allowed to see the information on which the ratings are based.
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duck
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Post by duck on Dec 18, 2014 17:34:59 GMT
Well reading todays Email it does appear that Country will disappear. me too, Slovakia has just hit a 58% default rate for me!
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Dec 19, 2014 9:14:04 GMT
Yes the country flags have been removed from the market already. They seem determined to impose this with no consultation with investors whose views are being ignored. I guess the auto mass market has arrived, so with regret I will probably stop investing as I have lost confidence in their assessment of risk.
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shimself
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Post by shimself on Dec 19, 2014 16:57:51 GMT
Countries are still there in portfolio manager, and they are there also if you click on an individual loan. What am I missing please?
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Dec 19, 2014 21:09:45 GMT
Did you not get the latest newsletter?
There will be no choice of country, only the new ratings.
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Post by coolrunning on Dec 19, 2014 21:48:37 GMT
The old Investment Portfolios still work and has country selectors, but are very limited. I have paused most of mine.
And they will be gradually pushed out of use.
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duck
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Post by duck on Dec 20, 2014 11:08:17 GMT
The old Investment Portfolios still work and has country selectors, but are very limited. I have paused most of mine. And they will be gradually pushed out of use. I paused most of mine but left a couple running, possibly not the best action since I 'picked up' a high level (certainly higher than I would have wanted) of 'E' and 'HR' loans.
The same newsletter that james snipped from said "You will be able to continue using old Portfolio Managers if you choose to, but they will be locked for any edits." which in effect means they will become redundant/locked so unless they are currently 'perfect' you will have to move to the new system.
As with all things 'Bondora' my plan is to go slowly with the flow but monitor very carefully!
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
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Post by JamesFrance on Dec 20, 2014 11:25:21 GMT
If our existing portfolio managers don't invest because the new ones have priority and also because the better quality loans are already down to 15% interest, I will not be forced into continuing investment when you cannot choose countries. I have found Omaraha to be much better this year for defaults and they buy them into the warranty fund at at least 60% since March. I only have a small holding there, mainly because there is no secondary market yet, but I will probably move uninvested Bondora repayments there instead.
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james
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Post by james on Jan 1, 2015 6:18:33 GMT
What are the interest rates like at Omaraha? How's the user interface?
It turned out that Bondora didn't only block editing old profiles, they also blocked turning on disabled profiles and switched those with none turned on to the new system involuntarily.
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Jan 1, 2015 9:07:41 GMT
Replied by PM.
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duck
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Post by duck on Jan 2, 2015 8:58:50 GMT
....... It turned out that Bondora didn't only block editing old profiles, they also blocked turning on disabled profiles and switched those with none turned on to the new system involuntarily. I managed to bring an old profile back to life and edit one after we were told we couldn't and then yesterday every profile that I had running was 'archived' and the choice now is New or New ............... Also looking at Omaraha.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
Likes: 897
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Post by JamesFrance on Jan 2, 2015 9:31:12 GMT
As expected the new portfolio managers have no facility for choosing country of borrower, so in future it will be manual investment only for me. The default rates for their new countries have been far too high and they are planning to keep on adding new ones. Maybe if everyone finds they are unhappy with the new system there will be more loans appearing on the market instead of being filled instantly by profiles.
Some of the HR rated loans are offering around 90% interest rates, which I would not be at all interested in charging those unfortunate people who do try to repay the loans.
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kermie
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Post by kermie on Jan 4, 2015 12:13:28 GMT
I'll try to avoid the temptation to rant, but suffice to say I am less than happy with the new approach.
Since the introduction of the new portfolio managers, I have been picking up a small number of loans which are at rates below that set within my 'archived' portfolio manager. Frankly, this seems dishonest since I did not sign up to such loans.
I now want to only invest manually (if at all!) - so I deleted all my 'archived' portfolio managers, and tried to upgrade to the new portfolio manager (via the fairly obvious upgrade button on the Archived Portfolio Manager page). It was not at all clear what had actually been set up, so I chose to explicitly set up a "custom" portfolio manager, and set all the % allocations to zero, such that all repayments go to my account and no new investments are made.
I saved this. Then when I went back into the new portfolio manager page, my newly set-up portfolio details were not displayed - it simply shows some other (default?) values.
What gives? How do I know that all portfolio managers are actually turned off, and that no new automatic investments will be made?
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Post by coolrunning on Jan 4, 2015 15:53:51 GMT
Best advice I have seen posted is to:
Select only AA loans of which there appear to be none.
Put 100% there or 100% in the "keep for later" slot on the right.
I'm just doing manual bids so have not set up the new PM.
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Post by batchoy on Jan 4, 2015 17:34:36 GMT
Having looked at the portfolio manager, I discovered that 58% of my current holdings are now rated HR. Analyzing these HR loans I find that 90% of them were rated A1000 when purchased, and 68% are Estonian, looking at some of them in detail I cannot for the life of me understand why the loans have picked up an HR rating.
For example I have a 60 month A1000 Estonian loan paying 18%, the borrower has not missed a payment and nor did they on a previous 12 month loan, and yet Bondora has rated it as HR with an Expected Return of -18% and an Expected Loss of 30%, looking at the available information for the loan I see no reason for this pessimistic outlook by Bondora.
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