james
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Post by james on Oct 5, 2015 2:00:29 GMT
Bondora seems to have reached a major milestone recently when the total capital value of all loans that are 60 or more days in arrears became larger than the total value of all interest paid out to those who have lent through the platform. Those who have a Bondora account can see the numbers here. If you don't have an account you can compare EAD1 (the value at default) - recovery to interest paid in their downloadable all loan dataset. Bondora's own high profile reports of investor returns only count as negative the capital payments missed so far, not the remainder of the capital balance. This still produces positive numbers. In effect this is a very flattering view that assumes 100% debt recovery, not remotely close to actual recovery performance. They removed the total interest paid number a while back ( old version, current version). Bondora seems to do a lot of high risk lending these days and this makes debt collection effectiveness critical to the potential returns that investors will eventually receive from their lending. From the what can go wrong and how to mask it in the statistics you show to potential investors department. |
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Oct 5, 2015 6:49:43 GMT
Yes I have stopped investing in this platform and hope that the increasing amount defaulted gradually becomes less than the interest received. They need to show some success with recovery but that will take years.
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james
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Post by james on Oct 9, 2015 20:56:08 GMT
Bondora seems to be the platform that keeps giving in the how to mask bad news department. Now they have removed the defaulted amount from the pictures on their site. Yes I have stopped investing in this platform and hope that the increasing amount defaulted gradually becomes less than the interest received. They need to show some success with recovery but that will take years. Well, they seem to have worked out how to make recovery statistics look good: report percentage of expected recovery, without saying what expected recovery is, so that they can report 100% of something even if that 100% means only 10% actual recovery. You have to admire their apparent determination to be an example to cite of practices relating to the FCAs mandatory requirement that promotions have to be "fair, clear and not misleading". Not that knowing how recovery matches expectations is bad, it's good to know to track how well a platform does at achieving its estimates. But for an investor it's the amount recovered - or amount not recovered - that matters in the performance of their investments. |
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ben
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Post by ben on Oct 10, 2015 15:07:10 GMT
They do seem to have some interesting statistics, hopefully it is a skill others sites do not copy
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jo
Member of DD Central
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Post by jo on Oct 10, 2015 19:46:28 GMT
The Bondora model (imo) is really a 10year investment product, not a P2P product - at least in the traditional sense. Report your 'income' accordingly.
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duck
Member of DD Central
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Post by duck on Oct 11, 2015 5:19:12 GMT
They do seem to have some interesting statistics, hopefully it is a skill others sites do not copy I believe having shares in a salt mine is a prerequisite to accepting the 'official' figures.
I have always kept my own!
I'm wondering if the 'recent' retrospective change of imposing the cost of recovery on the lender is having an effect .... early days I know
My recovery figures for the last few months (the earlier ones were always at the low level shown at May) in Euros
| Item | May | June | July | August | September | October | | Principal | 7.49 | 89.65 | 69.79 | 41.60 | 113.08 | 65.55 | | Interest/late charges | 0 | 11.39 | 2.78 | 4.70 | 14.69 | 28.53 |
The October figure is a week out of date (more recoveries since then) and I have noticed a larger number of defaults including those that never made a single payment making payments.
A long way to go but possibly a start?
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