Account rundown example (CP)

Not much of an update to be fair Ace. No detail whatsover and it makes me laugh when they end their update with "As always if you have any further questions please do not hesitate to get in touch." I've given in sending them queries as the response when you eventually get it will be as vague as the original.

I'm still waiting an update for a loan due to complete on 1st Jan which I queried on 6th Jan!

The table in the OP has been updated.

XIRR is continuing to rise. now 4.46%.

3 loans repaid in total this month, 2 of these were late. 3 more loans passed their scheduled repayment date and are now late.

1 loan is scheduled to repay in February. The majority of capital for this loan has already repaid. An update has been received to say that the remaining capital is expected to be repaid on time. In general, I get the impression that CP are finally listening and have started to improve their loan updates. They now also more often include an expected timescale. On the negative side, the ability to access loan updates is still completely unfit for purpose.

The percentage of overdue capital on this account has now increased to 75%. This is to be expected on accounts in wind-down, so I don't see it as a worry.

The XIRR on my larger, active, ISA account dropped slightly to 5.05%. I continue to actively invest all repayments from this account, and have also added a small ISA transfer from AC.

I'm still confident that both accounts will end up around 7.5%.

The percentage of overdue capital on my active account is now 57%. That's higher than I would like. It seems to me that this is a reflection of economic issues that we're all aware of, but also because CP don't seem to allow much time leeway in their schedules. This actually acts in lenders' favour as we start to earn 2% extra once the forecast end date passes. It's also a good way to focus the developer's mind. Many developers are likely to have multiple projects in progress and will focus their attention to those that are costing them most.

One significant event where I feel that CP should be commended is that, on a loan that has been granted a 1 year extension to allow a stabilisation period that will allow the completed project to refinance, CP have decided to continue to pay lenders the extra 2% interest but have reduced the penalty (sorry, "protection") interest to the borrower from 5% to 1%. So, CP are actually taking a smaller cut for themselves during the extension. Well done CP.

The current increase in rates to lenders on CP is also very welcome, particularly as it also applies to follow-on tranches for existing projects where CP will be taking a hit on their margins. I also feel that the way that this is being implemented has been well thought out. i.e. the increased rate is only applied once all lenders in all tranches have received their capital and interest at the original rate.

Yet another plus point for me is the ability to get funds deployed has significantly improved. This is partly due to the reduction in lenders per loan, and partly due to the increase in loan throughput. The result is that you can pretty much lend whatever you want via auto or self-select. And there's no longer a need for self-selectors to be at their computers when ther loans are released as there is usually availability into the evening. This is sometimes not the case following large repayments the previous day, as this obviously temporarily increases the funds that want to get redeployed, but I'm generally finding it much easier to keep my funds earning.

This is pure speculation, but I think that what is happening here is that CP are waiting to deploy the institutional funds until the day after the loan is released (though perhaps giving them some allocation on release as well). The evidence for this is that loans often are not fully funded for around a day, and then become magically fully funded the morning after the release. If this is the case, then it seems very sensible, and is allowing us retail lenders a much better experience while still ensuring that tranches are fully funded by dipping into their vast pots of institutional funds when needed.

Sorry, I've droned on for longer than intended. Hopefully next month's update will be much briefer.

The table in the OP has been updated.

XIRR is continuing to rise. now 4.62%.

5 loans repaid in total this month, 4 of these were late. No more loans passed their scheduled repayment date this month.

There are no loans due to repay in March, but I still expect some early payments from the on-schedule loans and some from the lates.

I feel that the account is continuing to wind down in an orderly manner.

The table in the OP has been updated.

XIRR remained flat at 4.64%.

5 loans repaid in total this month, of these: 2 had defaulted, 1 became late during the month, and 2 repaid early.

2 loans became late this month (3 including the one that later repaid).

8 loans are now in default (> 6 months late), same number as last month.

2 loans are due to repay in May.

It still feels like an orderly wind down.

Platform stated stats for my combined portfolios are:

Realised Average Return: 8.19%.
Contracted Average Return: 7.88%.
Current Contract Rate: 7.84%.

There are currently 19 loans across the whole loanbook in default. 

There are 8 loans in default that this account in rundown is in. 

The table in the OP has been updated.

XIRR dropped slightly to 4.61%.

2 loans repaid in total this month, both were already late.

2 more loans became late this month.

8 loans are now in default (> 6 months late), same number as last month. I was notified that 1 of these will suffer a capital loss.

1 loan is due to repay in June.

It still feels like an orderly wind down.

Platform stated stats for my combined portfolios are:
Realised Average Return: 8.21%.
Contracted Average Return: 7.88%.
Current Contract Rate: 7.86%.

The table in the OP has been updated.

XIRR dropped slightly again to 4.53%.

No loans repaid this month, and almost no interest was paid.

1 more loan became late this month.

10 loans are now in default (> 6 months late), same as last month. (I was previously notified that 1 of my defaulted loans will suffer a capital loss).

No loans are due to repay in August.

It still feels like an orderly wind down.

Platform stated stats for my combined portfolios are (Note that these figures are currently only provided by the platform for combined portfolios):
Realised Average Return: 8.20% (same as last month).
Contracted Average Return: 7.88% (same as last month).
Current Contract Rate: 7.92 (7.91% last month).