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Post by stanyko on Jan 24, 2015 17:42:15 GMT
Well, for me is Bondora becaming a nightmare for many reasons. Latest one is new portforlio manager. I made my own setup and they call is "dynamic", but for last - weeks I couldn't invest 150 Euro from my account.
Do you have any tips? Should I go for some predefined portfolio?
Also I have 5-6K Euro available, but I'm really thinking to put it into bank instead of p2p.. What would you advise?
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duck
Member of DD Central
Posts: 2,864 
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Post by duck on Jan 25, 2015 6:44:28 GMT
I've been using my own 'dynamic' portfolio manager and I'm not having any issues matching/moving money (the quality of the loans is another matter). I've dropped my limit to 5 Euro per loan and I am picking up 20-40 loans every week day.
I suspect your manager is centred on As Bs and Cs and that is what is holding you back. Whilst I am picking up these risk loans I am certainly picking up more Ds and Es (still getting a decent number of As, Bs and Cs).
I'm prepared to let this go for a month or so and see what the payment record is like since what I previously viewed as acceptable risks now appear as D or below loans. I have a fair number of old HRs that are paying well ......
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Post by batchoy on Jan 25, 2015 16:15:00 GMT
I have my Dynamic portfolio manager activated but set to that it will make few if any investments. There are too many anomalies between the original credit rating system, the payment performance on existing loans that I hold and the new rating system that I want to hold off on new investments until there is some evidence that these new ratings and the new portfolio managers actually have any merit.
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Post by Bodovon on Feb 2, 2015 16:06:02 GMT
The new portfoliomakers definitely are a pain in the a.... They are clearly aimed at six year olds that have no own ideas about interest, credit history, loan duration or country.
The expected returns have been lowered substantially. "Conservative" is expected at 14.51%, "dynamic" at 17.57% only. Until end of last year the advertised average over all risk groups was 21%, and I personally did much better than that.
My old managers are still online but thanks to the new lowered interest rates they rarely get a chance now. And they cannot be changed in any way, just killed.
I was a true fan and larger scale investor with Bondora but 2015 they make every effort to send self-responsible professional investors to their compeditors. Maybe their new target group of unthinking, obedient zombie investors is the future of P2P? I don't hope so.
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Post by reeknralf on Feb 2, 2015 17:17:44 GMT
I wasn't worried about the new manager, as in the press releases and interviews they said they were going to introduce an API which would restore the ability to choose your investments. A month after the new manager was launched, I'm starting to wonder if the API is just a vague ambition for who knows when. I've asked, and they won't be drawn.
That said, I don't think the overall returns have dropped: safer loans are cheaper and riskier loans more expensive. The figures they quote in the manager are not comparable with the historic 21% quoted. I've never fathomed why, but a loan with a nominal rate of 20%, actually yields ~25% XIRR. You can see this on the secondary market, as the XIRR yields to the right are higher than the nominal yield. So a 'dynamic' portfolio with a nominal yield of 17% possibly has an XIRR yield of 21%.
That's all assuming that the new ratings work the way they say they will. And having done some stats on their data, I don't believe for a second that they will.
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Feb 2, 2015 17:47:53 GMT
The average return has been dropping every week recently.
Today it fell below 20%.
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duck
Member of DD Central
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Post by duck on Feb 3, 2015 6:32:28 GMT
Yes the overall rate appears to be falling but my 'dynamic' portfolio manager is keeping my overall average % the same it was before the change ..... but and it is a big BUT, the average disguises the fact that the figure is distorted by 73% and 95% HR Spanish loans.
Now call me a pessimist but when I see a Spanish HR loan with 'NR' instead of M/F and with interest rates at that level I am not optimistic about repayment! Take these higher rate loans out of the equation (or assume a high default rate) and the overall rate is falling fast.
As I said earlier in the thread I'm letting things 'run' at present mainly to see what happens but I have a feeling that more care is needed at the vetting stage (reject more applications) and a lot more effort needs to be put into the already defaulted loans. Currently 13.6% of my defaults (I have 298 defaulted loans) have made a payment (some very small, some are doing better) since default which is not impressive.
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