XIRR evaluation of my portfolio against Bondora's NetReturn

Hi there.

Not investing, just running the portfolio down, selling defaulted loans with no positive recovery news at substantial (60%- 85%) discounts, leaves my Bondora reported return at 15%, where it has been for 6 months+.

I have stopped micro-managing the portfolio as I withdraw funds.

I don't do the XIRR calculation, mainly because I can't be bothered. My overall target now is to get out what I put in.

For me:

Bondora says 24.7%.
My Euro XIRR is 16.9% with all default valued at zero or 20.0% at 70%.
My GBP XIRR is 9.7% with all default valued at zero or 13.9% at 70%.

It is likely that the Euro values will continue to increase over time. The GBP ones will vary with the exchange rate. All of the loans I have are Estonian and all are now at least 15 months old. Average interest rate is about 26%.

About 4-5 months before GBP out is higher than GBP in. Euros is about break even already, only €100 more in than out.

Hi, Bondora shows me 38,24% return. In my own calculation my return is actual 28,7% (XIRR). And I have not many red loans.
It so high, because I am active on the Secondary market and because of my own Scoring Model that I develope since June 2014.

The highest return Bondora shows me in the past was nearly 60% p.a. At that time I had a XIRR return form over 35% p.a. after bad debts. And that was not in the beginning. At that time I had many hundreds loans in my Portfolio with no loans with more than 60 days overdue, because I sell them before. Since 1 year my total return decreases from month to month because of the lower interes rates and because of some defaults in spanish loans. I try to sell the spanish loans after or before they become red.
My average interest rate of my active loans is now 40,2%.

So far a really good financial investment for me. So it will be exciting what the future will bring on Bondora

Until recently I had no red loans in my portolio because I sell all loans with discount. Since we can trade even red loans, I also put every red loan to the secondary market to sell them. But I do it not very fast. Every few days I increasing the discount. I some cases I have up to 20 loan parts from the same borrower. So it takes some time to sell all red loans.

If I use your XIRR method (all loans valued at principal value, except defaults with zero value) my XIRR is only 1 percent lower.

It logical that I sell many loans with huge discounts. But thats normal when your average interest rate is above 40%.

As stated above, I use similar method, by calculating XIRR based on deposits and withdrawals (includes cash drag effect essentially) AND I deduct fully all overdues and all defaults.

In short:
- current = 100% of principal value
- overdue = 0% of principal value
- 60+ days overdue (actually 74+ today, but somehow it still says this ): 0% of principal value

I'm calculating very pessimistic scenario.