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Post by junior on Jan 26, 2017 12:02:46 GMT
Hi guys, even though my weighted average interest is close to 11.5%, the indicated XIRR is hovering around 8%. What XIRR are you guys getting? I'm investing mostly into 1-3 months loans with buyback.
I have 8% loans extended and 8.5% delayed in my portfolio. Could that be it? Will it grow when the buybacks kick in?
Thanks in advance!
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kulerucket
Member of DD Central
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Post by kulerucket on Jan 26, 2017 13:33:04 GMT
There will always be a cash drag effect of not having anything earned for the first month or so. As time goes on, this month becomes a lower proportion of your total investment time. What I would expect to see the XIRR slowly approach the weighted average interest as more time goes on.
Since Twino give you the interest on the day it's due regardless, the buyback doesn't effect this. You only see a spike when lots of loans pay out around the same time, and a bit of a decline on days that have no payments.
From your XIRR vs average figures, my guess would be that you are only about 2 months in if you deposited a lump at the beginning.
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Jan 26, 2017 15:30:26 GMT
Mine shows 15.15% now after 18 months, but it is slowly dropping from a peak of 17.25% when there were ways of increasing your return which are no longer available. I see no reason for your XIRR not to be an average of the return figures shown on the loan details as long as you keep your money invested in loans.
I didn't know there were 8% loans, no need to take those.
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Post by junior on Jan 26, 2017 16:29:10 GMT
Thanks for the info guys, will keep monitoring the situation. And yes, I've just started about 2 months ago and had extra investments along the way.
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Post by mopcku on Jan 26, 2017 18:21:37 GMT
I see no reason for your XIRR not to be an average of the return figures shown on the loan details as long as you keep your money invested in loans. As already discussed in different thread even in the case that you are constantly invested to 100%, all loans have the same interest rate and there are no losses your XIRR will be different from the interest rate.
p2pindependentforum.com/thread/7733/applying-xirr-payment-schedule
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Jan 26, 2017 18:52:20 GMT
As shown in the loan details by Twino.
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kulerucket
Member of DD Central
Posts: 336
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Post by kulerucket on Jan 26, 2017 19:15:49 GMT
I see no reason for your XIRR not to be an average of the return figures shown on the loan details as long as you keep your money invested in loans. As already discussed in different thread even in the case that you are constantly invested to 100%, all loans have the same interest rate and there are no losses your XIRR will be different from the interest rate.
p2pindependentforum.com/thread/7733/applying-xirr-payment-schedule
At least with Twino I can replicate the exact XIRR as quoted by Twino simply using all transfers in/out of the account and the value of the account as of the current day. I apply the Twino method to all of my platforms for a comparision. Always the initial ramp up takes time to climb but then approaches the true return as the initial time makes up a lower and lower proportion of the total time. As with Mintos though, the payouts use the Principal*Interest/Number_of_Days method.
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Post by mopcku on Jan 26, 2017 20:12:14 GMT
At least with Twino I can replicate the exact XIRR as quoted by Twino simply using all transfers in/out of the account and the value of the account as of the current day. I apply the Twino method to all of my platforms for a comparision. Always the initial ramp up takes time to climb but then approaches the true return as the initial time makes up a lower and lower proportion of the total time. As with Mintos though, the payouts use the Principal*Interest/Number_of_Days method. What I meant is that the XIRR should be different than the loan interest rate.
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