Rob
Posts: 138
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Post by Rob on May 10, 2017 7:06:38 GMT
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Post by rahafoorum on May 11, 2017 11:05:10 GMT
I have very few under 3 months as I tend to go for longer duration for the higher return. A large portion of my PG are 6 to 12 months so I would estimate my average BB duration is longer than PG. So you have another "skew" in your data. If you don't go for the shorter term loans, then you have no new BB loans in your portfolio (last I checked, those are only up to 2 months nowadays). Ones that go bad, are sold off and ones that have been paying tend to keep paying at a better rate usually than fresh batch of loans.
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Post by novice on Jun 7, 2017 5:49:22 GMT
PG rated loans default ~ 10 % ? What does it mean, does Twino pay me the defaulted loans and interest or have I lost the money?
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Rob
Posts: 138
Likes: 36
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Post by Rob on Jun 7, 2017 8:27:58 GMT
PG rated loans default ~ 10 % ? What does it mean, does Twino pay me the defaulted loans and interest or have I lost the money? For PG loans, Twino pays you the principal and interest according to the loan schedule, regardless of whether the loan has defaulted or not. But if the loan defaults, you cannot sell it on the secondary market.
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kulerucket
Member of DD Central
Posts: 336
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Post by kulerucket on Jun 21, 2017 10:25:40 GMT
So, these PG loans are starting to make me feel a bit itchy about Twino. In the past, Twino has been one of my most profitable and least worrysome platforms but it's slowly starting to fall from grace. My PG default rate starting to creep up (presently 37%), selling delayed PG loans is not very quick and for 24 months loans very difficult. All this is starting to make the sharp exit option I used to like impossible so I'm starting to reduce. I could keep Twino as the instant access (<3m) part of my portfolio, but at the moment it is still easy enough to get 11-12% short term loans elsewhere and so the 10% BB don't seem worth it.
On top of this the autoinvestor is pretty much worthless at the moment and so Twino is also costing me time as well as increasing my worry level.
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Post by yoica on Jun 22, 2017 7:08:24 GMT
I feel the same and have sold all my loans on Twino. Only have ~10 defaulted PG loans I'm not allowed to sell and some 39.58% loans which have been current for months.
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cdes
New Member
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Post by cdes on Jul 1, 2017 18:14:12 GMT
So, these PG loans are starting to make me feel a bit itchy about Twino. In the past, Twino has been one of my most profitable and least worrysome platforms but it's slowly starting to fall from grace. My PG default rate starting to creep up (presently 37%), selling delayed PG loans is not very quick and for 24 months loans very difficult. All this is starting to make the sharp exit option I used to like impossible so I'm starting to reduce. I could keep Twino as the instant access (<3m) part of my portfolio, but at the moment it is still easy enough to get 11-12% short term loans elsewhere and so the 10% BB don't seem worth it. On top of this the autoinvestor is pretty much worthless at the moment and so Twino is also costing me time as well as increasing my worry level. Same here, I had a set of PG in my portfolio to try it out - currently I am at 73.18 % defaulted and another 16 % delayed. Do everything you can right now to assure what you call "sharp exit". Many, including me, missed this very mark with bondora and this did cost us almost all profits we managed to hedge in the years before. Something is not peachy with twino, new loans lag in 1 or 2 at a time, money is sitting idly in the accounts, the default rate is unsustainable for both, twino and us, and their "innovative" implements such as PG seem to have no immediate benefit for us but to enable twino to pay us later and in smaller slices.
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Post by gmaxkenny on Jul 30, 2017 21:19:02 GMT
I stopped investing in PG loans some time ago and this is why. As of today they stand at.
Current 17.10%
Delayed 5.22%
Defaulted 77.68%
There is no way this is sustainable.
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Post by kilozulu on Jul 31, 2017 6:30:37 GMT
I stopped investing in PG loans some time ago and this is why. As of today they stand at. Current 17.10% Delayed 5.22% Defaulted 77.68% There is no way this is sustainable. Twino seems alive and kicking, thus there may be a different explanation. Just asked their representative if this is not simply due to the typical case where borrower gets into technical default, but is then rescheduled. Maybe platform just leaves it as default, I think even it said somewhere in FAQ that for some loan types no extensions possible, goes directly into default. EDIT: Twino confirmed "Yes, it stays in the status "Defaulted". The same happens if the borrowers returns to timely repayment, as per original schedule." So it has no real relation to actual default rate, just borrower payment discipline.
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Post by gmaxkenny on Jul 31, 2017 13:51:02 GMT
My BB loans are Current 47% V PG 17% so I am not buying Twinos explanation. I am continuing to withdraw from this platform as money becomes available as the interest paid in no way reflects the risk. If the borrowers were just late with repayments it would show up in the Delayed column not the Default one. I may be wrong but I am not making the same mistake I made with Bondora. I have never liked the fact that the present CEO is ex Bondora.
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Post by mopcku on Jul 31, 2017 23:07:16 GMT
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Aug 1, 2017 6:57:08 GMT
I see this with all of my old 12%/13% BB loans on Twino. The remaining ones are very reliable as they are all ~6 months old. You would expect to see the same behaviour for PG loans if you sell them before default, however at the moment most PG loans seem to be bad and there is no critical mass of good ones accumulating. I just keep selling and selling.
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Rob
Posts: 138
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Post by Rob on Aug 28, 2017 9:00:29 GMT
I thought that Payment Guarantee loans would run until maturity, even if they defaulted. But Twino is now buying back defaulted PG loans so that they can sell them e.g., loan number 04-680924002.
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Post by kilozulu on Aug 28, 2017 12:19:35 GMT
I thought that Payment Guarantee loans would run until maturity, even if they defaulted. But Twino is now buying back defaulted PG loans so that they can sell them e.g., loan number 04-680924002. You mean buying back and selling on primary market again? defaulted loans? Maybe Twino just have excess liquidity and they use it for buybacks. Or they sell new lower interest rate loans to investors and use the money to buyback higher interest rate defaults.
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Aug 28, 2017 19:03:50 GMT
I thought that Payment Guarantee loans would run until maturity, even if they defaulted. But Twino is now buying back defaulted PG loans so that they can sell them e.g., loan number 04-680924002. I got one too: www.twino.eu/en/profile/investor/loan-information/450555To be honest I'm glad to see the back of it. Good riddance. I have a page of 12 month PG loans that defaulted before I realised that they couldn't be sold. Since this initial blunder I've been selling off as they approach default. I want to maintain an easy exit so these defaulted PG loans are a bit of an eyesore.
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