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Post by wiseclerk on Dec 30, 2014 10:51:18 GMT
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Post by coolrunning on Jan 2, 2015 10:32:09 GMT
Thanks, Wise One  |
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Post by wiseclerk on Apr 30, 2015 16:16:32 GMT
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Post by zakaz on May 3, 2015 10:47:54 GMT
near 20% seems to be very impressive.
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james
Posts: 2,205
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Post by james on May 8, 2015 21:07:11 GMT
Such returns used to be possible at Bondora without great difficulty. No longer, so newcomers should not expect returns close to that, particularly after the effects of tax and bad debt are allowed for.
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Post by tybalt on May 9, 2015 14:56:45 GMT
Not to mention foreign exchange exposure.
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Post by reeknralf on May 9, 2015 19:15:20 GMT
Currency exposure does not give us an a priori reason to expect future ROI to be lower than historic ROI. Unless of course you know the future €/£ rate. In which case, please share.
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Post by coolrunning on Jul 10, 2015 20:07:38 GMT
Just published an update today on how my Bondora portfolio is developing. You can read it here: www.p2p-banking.com/countries/baltic-update-current-status-of-my-bondora-portfolio/... My standard criteria for selection right now are: Bondora Rating AA to B, sometimes also C Credit Group A Credit History 1000 Estonian loans only Age typcially from 25 to about 60 Income ideally well above 1.000 Euro Income verified preferred Homeownership ideally Owner, Mortgage or Joint ownership one or more previous Bondora loans, where the borrower has made repayments for a couple of months are a plus in my view DTI that is not excessive ... Hi Wise One, I always find your portfolio reviews interesting and useful. With your tough selection criteria above, how do you ever manage to find loans?
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Post by wiseclerk on Jul 10, 2015 20:44:24 GMT
Hi Dog Cool
I am not always finding any these days. At the moment I log in typically 3 or 4 times a week run my saved filter and if I am lucky there are 2 loans that are not complely filled.
Then I look at each of these loan. With some luck it matches most of what in want. Then I invest up to 20 loan parts (15€ each).
If it looks okay but not an ideal match than I might take only 1 or 2 loan parts.
So far this works and there is no cash accumulating in the account.
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Post by coolrunning on Jul 11, 2015 11:05:39 GMT
... Then I invest up to 20 loan parts (15€ each). If it looks okay but not an ideal match than I might take only 1 or 2 loan parts. ... Why 15€ each ? Unless you intended to sell in the 2nd market ?
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Post by wiseclerk on Jul 11, 2015 15:55:15 GMT
Because if I had one big 300€ part instead it would be nearly unsellable in case I want to reduce my position in that loan or sell that loan on the secondary market.
In case it gets >30 days late I might try to sell off at least half of it to not have a bulk risk in my portfolio.
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james
Posts: 2,205
Likes: 955
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Post by james on Jul 11, 2015 21:20:17 GMT
Coolrunning, it's much easier to sell lower value loan parts. That includes those with problems. Just more people who can buy at smaller sizes and meet their diversification goals. This was the main thing limiting how fast I could get money invested at Bondora during the few months when low bids would win the auctions for desirable loans. I knew that I would want to sell some easily so I knew that I had to keep the amount lent per loan from automatic bidding, limited normally to one bid per loan, down.
The loans that wiseclerk described used to be quite readily available, say 18+ months ago. It's a good set of criteria and just about my whole loan book fits the Estonian A 1000 portion. The age/home/income criteria help to mean that assets are available for bailiffs to collect.
This is now irrelevant for me because I no longer trust Bondora to be honest about its underwriting practices after selling loans to under 25 shop assistants, tellers and fitters after telling investors that they were only opening up to under 25s who were young professionals. For this and other reasons I'm running down my loan book and just accepting the exchange rate loss. I've added more money to other European investments so I gained that way what I'm losing on it at Bondora.
BTW, if you want an underwriting bad joke, consider the consumer Bondora borrower who apparently had a million Euros of loans when she appeared in court. Bondora said when they offered the loan to investors that they had verified her income and expenses, including that she was a pensioner with a child receiving child benefit.
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Post by coolrunning on Jul 12, 2015 6:26:52 GMT
Coolrunning, it's much easier to sell lower value loan parts. ... Hi James I agree entirely. But I am not so pessimistic as you about Bondora. Just worried that they are trying to expand so fast. 
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317 
Likes: 893
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Post by JamesFrance on Jul 12, 2015 7:04:15 GMT
Yup it's known as over trading.
The 1.2 million euro loss on a turnover not much greater is not good news.
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james
Posts: 2,205
Likes: 955
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Post by james on Jul 12, 2015 8:12:22 GMT
But I am not so pessimistic as you about Bondora. Depends what there is to be pessimistic about. Given that I've recently lent in the UK on loans with physical property security at about 15% and 19% I think that I can get better returns than at Bondora these days, without the currency risk. So no point in me using Bondora even if I was happy with the business. I'm not so unhappy with Bondora that I'm trying to sell all my loans early, though, it's just normal run-off. If I was really badly worried about the fate of Bondora itself in the short term I'd be looking to sell all as soon as I could.
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