Post by nick on Jun 5, 2017 8:32:47 GMT
In recent months I have been ramping up my investments in FS as interest rates that generally fallen elsewhere. I try to keep a rough track of all my P2P investments by monitoring movements in total account value, including any accrued interest. Using this info plus details of net deposits/withdrawals made from each platform I can calculate weekly returns. Given the high number of investments I have over several platforms, this is my main control to ensure that are no major issues with my accounts rather than trying to reconcile amounts at individual transaction level.
I'm been scratching my head trying to reconcile my weekly FS returns which are significantly lower than expectation. This has always been the case, but I previously often sold loans at a discount as they approached maturity so assumed the shortfall was due to this. However, over the past month or so I haven't sold any loans at a discount, with the loans I have sold being at par or at a premium, yet my returns still look low (~8.6%) after accounting for free/unallocated funds and the fact that accrued interest amounts (on both active loan and those awaiting activation) do not compound. When determining my account value, I include both accrued interest on active loans and those awaiting activation. I've made no net deposits/withdrawals over the past couple of weeks so net funds on the platform have been stable and I have been conservative in estimating the average amount of non-commited/allocated cash on the platform not earning interest. I have also conservatively assumed a 13% flat interest rate on committed funds (I only invest in 12% loans and many of my loans are >13%), yet by return expectations remain I lot higher than actual.
I have looked at a sample of current loans and 'investments awaiting activation' and the interest accrued on these seem ok. I have also checked a small sample of sales to ensure that the right amount of accrued interest has been paid and these all look fine.
I'm left completely puzzled on why my apparent returns over the last few weeks are so low. Has anyone had similar issues reconciling their returns or have any suggestions on what I might be missing?
I'm been scratching my head trying to reconcile my weekly FS returns which are significantly lower than expectation. This has always been the case, but I previously often sold loans at a discount as they approached maturity so assumed the shortfall was due to this. However, over the past month or so I haven't sold any loans at a discount, with the loans I have sold being at par or at a premium, yet my returns still look low (~8.6%) after accounting for free/unallocated funds and the fact that accrued interest amounts (on both active loan and those awaiting activation) do not compound. When determining my account value, I include both accrued interest on active loans and those awaiting activation. I've made no net deposits/withdrawals over the past couple of weeks so net funds on the platform have been stable and I have been conservative in estimating the average amount of non-commited/allocated cash on the platform not earning interest. I have also conservatively assumed a 13% flat interest rate on committed funds (I only invest in 12% loans and many of my loans are >13%), yet by return expectations remain I lot higher than actual.
I have looked at a sample of current loans and 'investments awaiting activation' and the interest accrued on these seem ok. I have also checked a small sample of sales to ensure that the right amount of accrued interest has been paid and these all look fine.
I'm left completely puzzled on why my apparent returns over the last few weeks are so low. Has anyone had similar issues reconciling their returns or have any suggestions on what I might be missing?
