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Post by yoica on Jul 26, 2016 6:58:04 GMT
Don't forget the invest pages only show the loans that are still open for investment. So compared to the total loans the invest pages will always be skewed towards delayed/extended.
I've been keeping track of which of my investments are paid back (on time and extension) vs buy back. I have 552 finished loans and 80 of those are buy back which comes down to 14.49%. Based on my experience the unsecured loans would average to be around 10%-19%.
What ratio are others experiencing?
EDIT: fixed an error in my calculation
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Post by littleinvestor on Jul 26, 2016 9:18:55 GMT
All the loans I mentioned yesterday were Current, new, and went online yesterday but are all gone now. I managed to take them manually before AI kicked in (luck). 88 yoica , in 6 months I had 1990 short duration 12% loans invested in on average 50 to 100 euro each, 11% were buyback, 18% were early repayments. In average of the ongoing ones, 70% are on schedule, 30% goes for extension (15% extended one month, 15 % for more than one month up to 6 months) fyi, I never sold manually.
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Post by saraph on Aug 2, 2016 18:49:57 GMT
3 of my loans without guarantee were supposed to be paid yesterday. None of them was of course.
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Post by silverporka on Aug 3, 2016 19:57:28 GMT
I just 'invested' in about 15 of these b and c loans, just as a bit of a punt and to get data. Twino didn't really provide any basis for their expected return calcs, so it really is a punt.
We will have a fairly good sense within a few months. But I guess I would rather start at 39% interest and work backwards from there than invest in some of the other stuff that looks equally likely to blow up (unprotected business loans) at one third of the interest.
I would love to know how the 'B' and 'C' ratings were derived. Based on the info provided there was a big range of credit worthiness and some of the B's looked like C's and vice versa. I don't think stuff will ever be something that can be auto invested.
I think some loans will trade at huge premiums if they have say 6-9 months of solid payment history (not that you should sell those ones really)....
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Post by saraph on Aug 20, 2016 9:58:18 GMT
They are doing pretty well for me, my XIRR went up to 15.3 %.
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Post by doonio on Aug 20, 2016 15:05:52 GMT
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Post by saraph on Aug 20, 2016 18:43:11 GMT
"Invest" button doesn't even react for me with that loan. It works fine everywhere else.
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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 Aug 21, 2016 6:22:59 GMT
I think it's been repaid in full, look at the repayments made for the next 12 months.
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Post by saraph on Sept 22, 2016 18:39:18 GMT
Yay, just got my first default!
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james
Posts: 2,205
Likes: 955
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Post by james on Sept 22, 2016 20:45:21 GMT
One of the more important parts of this is income tax treatment. The HMRC guidance is, my bold: " 2) The loan must be made through a regulated peer to peer platform.
The loan must be made through an operator who has permission under Part 4A of the Financial Services and Markets Act 2000 to operate an electronic system in relation to the lending of money.
This condition may also be met if the loan is made through an operator who is based elsewhere in the European Economic Area and has been granted equivalent permissions under the law of that jurisdiction.
However this will only be the case where the operator has been granted a permission to undertake the activity, if the law instead states that permission is not needed to operate as a peer to peer lending platform in that jurisdiction then the condition will not be met" So for Twino: 1. Assuming the operator is based in Latvia, does Latvia require permission to operate a P2P platform? 2. And has Twino been granted permission to operate a platform by the Latvian regulator for P2P? If both are true then the bad debt situation would be greatly improved since the defaults could be deducted from non-defaulted income and only taxed as recoveries happen. With rates up to around 40% and anticipated returns after bad debt of around 15% that implies that an investor may well have several years of no net income tax bill since the Twino defaults first reduce tax on Twino income and if that is not sufficient can then be applied against income on other P2P platforms. This greatly reduces the tax-based disincentive to lend on loans with high default rates.* *Say 40% income tax on non-defaulted income, so that's a big chunk taken out of the 25% margin that's to cover bad debt unless the bad debt capital can be deducted.
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Rob
Posts: 138
Likes: 36
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Post by Rob on Sept 23, 2016 6:11:08 GMT
I think some loans will trade at huge premiums if they have say 6-9 months of solid payment history (not that you should sell those ones really).... You can only sell at par (no premium, no discount) on Twino. So if you have a failing loan, no-one is going to buy it off you as you can't offer it at a discount - a point worth noting with loans with no Buyback. But it also stops "flippers" (people who buy on the primary market then immediately try and sell on the secondary market at a premium).
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fric
Member of DD Central
Posts: 199
Likes: 79
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Post by fric on Sept 26, 2016 13:39:21 GMT
I think some loans will trade at huge premiums if they have say 6-9 months of solid payment history (not that you should sell those ones really).... You can only sell at par (no premium, no discount) on Twino. So if you have a failing loan, no-one is going to buy it off you as you can't offer it at a discount - a point worth noting with loans with no Buyback. But it also stops "flippers" (people who buy on the primary market then immediately try and sell on the secondary market at a premium). Twino as a limited liability company is registered in Latvia. As far as I know there are no licences required at the moment to run a p2p lending platform - its kinda in the grey area at the moment... Laws on this are still missing. I just remember that Mintos had a long dialogue with our consumer rights organization regarding the platform and they are were only licensed to lend money themselves (now the separated Hipocredit), that's one of the reasons they are trying to get the UK licence (not sure if they will officially register the business over there or how it works exactly).
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Post by saraph on Sept 27, 2016 19:22:52 GMT
Guys, if you receive anything from debt recollection, write it here please.
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Jan 28, 2017 15:19:38 GMT
How did the punts pan out? It's a few months later now so we should be able to see a better picture.
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Post by saraph on Feb 4, 2017 8:55:43 GMT
How did the punts pan out? It's a few months later now so we should be able to see a better picture. I bought a lot of them, sold some... Loans without buyback guarantee currently make about 7% of my Twino portfolio. These that I didn't sell I consider pretty stable with their payments. I've gotten one delay in maybe 2 months. They push my overall annual rate to 15%. I've had 3 defaults so far, 2 of which have been repaid by Twino in full. Buying these was definitely worth it for me, but it's not a 100% passive process like simply setting up your autoinvest. Out of all loans without buyback available, I always trimmed out people who had too low earnings, too high liabilities or were too old. Every couple of days it's necessary to check whether there are any delayed loans on your account and try to sell them (some people still buy them if they're not delayed by too long). If you're willing to give it the effort, I'd say maintaining around 16 % annual rate is realistic.
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