JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323 
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Post by JamesFrance on Nov 7, 2016 9:05:21 GMT
With Bondora I take the interest paid for each month then subtract the increase in the total sum of defaulted loans (new defaults minus default repayments).
I keep hoping that one day the default repayments may be more than the new defaults.
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art
Posts: 22
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Post by art on Nov 7, 2016 10:22:20 GMT
With Bondora I take the interest paid for each month then subtract the increase in the total sum of defaulted loans (new defaults minus default repayments). I keep hoping that one day the default repayments may be more than the new defaults. Can I ask what is the annual return when you calculate it this way and how diversified is your Bondora portfolio? Essentially you charge off all defaults immediately, which is probably prudent for unsecured personal debt.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
Likes: 897
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Post by JamesFrance on Nov 7, 2016 11:26:38 GMT
I don't calculate an annual return from this, just look at the month end. I have hundreds of loans made since August 2013, but I don't believe that anyone knows what the return will be or whether it will be positive. I am just letting it run down which I expect to take at least 10 years.
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Post by Estonia Invest on Jul 5, 2017 17:48:56 GMT
What is missing in that calculation is adjusting your monthly return for charge-off's. This is how I calculate my returns: monthly cash flow minus monthly charge-off over total value of the portfolio. I am not investing on Bondora, so not familiar with their terminology. On Mintos I consider value to be charged-off when it goes to bad debt column. If you want to be more accurate in your calculations you could consider 50% or more of your defaults to be a charge-off and that would give you a more realistic picture sooner, however they will eventually go to bad dept anyway and you will have to recognize losses. Sorry if this question sounds silly but I was wondering why not stick to those that offer the buyback guarantee (loans with "shield" symbol) and make a guaranteed 12% per year?
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