My social lending portfolio (2014, October)

With only two months to go in this year I’m finally starting to be able to tell whether or not I’ll reach some investing goals that I set for social lending. I’m still short by quite a lot for my yearly goal of increasing my total investments in social lending to 4K€, but I haven’t given up hope on reaching it.

This month is the first time that my interest earned crossed the 64€ marker (It ended up with 65,5€ on Bondora + 0,43€ on Moneyzen). It’s a significant number mostly because of emotional reasons – 64€ used to be 1000 kroons, which way back used to be a significant amount of money. Also, I finished up last year with hitting 32€ in interest earned per month, so it took me 10 months to double the previous investment target. My next goal is to hit 100€ in interest per month, looking at the numbers that’s likely to happen by summer 2015.

2014oct

For some reason the amount of delayed loans remained relatively high at the end of this month. Usually they tend to drop down to 5%, but this month they remained at over 7%. This is likely the first mark of winter coming, since from my experience many people have problems with payments in the winter months, which is probably due to increased expenses on things like heating.

2014octinvest

The total amount invested ended up being 365€. Out of that 170€ was from repayments and 195€ was money that I added in. It’s been slow coming, reaching 200€ invested into Bondora (especially difficult since I’m adding 50€ per month to Moneyzen). Hopefully by December the actual total money invested every month will hit the 400€ limit.

2014octreturn

The overall Bondora returns chart keeps hovering at 25%, nothing new there. While the amount of defaults I have keeps increasing monthly, then I’m also starting to see some serious recovery from the first of the defaulted loans that I got. Some 60+ loans are making payments monthly, some even several times per month!

New loans

I ended up adding 39 new loans into my portfolio in October.

Out of those loans:

– 2 Finnish loans, 37 Estonian loans

– 4 B+ loans, 35 verified loans.

Out of the verified loans:

– 5xA1000, 3xB1000, 10xC1000

– 3×900 group loans, 6×800 group loans

– 5×700 group loans, 3×600 group loans

As you can see, the large amount of loans it largely due to opening up my lower credit group bidders again. I also started to slowly invest into Finland now that we have more data on it and I’m hoping to build up to 50+ Finnish loans by summer next year. To finish, this is the current look of my portfolio managers:

2014octporftoliomanager

6 thoughts on “My social lending portfolio (2014, October)

  1. Nice results! Exeeding 65€ line is impressive (more imressive if we convert back to kroons). I sometimes like to think that this passive income would already help me cover some basic expenses, for example 65€ would cover phone bill, interet bill and get some food on the table.

    What about B+ loans? You have so little of them, do you consider them to much higer risk compared to ordinary B loans?

    1. I have 17 active B+ loans, one has defaulted, one is constantly delayed. First of my B+ loans have hit 6 months and they’re not performing badly.
      Currently my B+ loans are 5% of the portfolio and I’d have no issue bringing their number up to 15%-20%, but there are two problems with this:
      1. Getting good B+ loans means spending a bit too much time checking the marketplace since the better ones get picked up quickly. (Thinking of starting a portfolio manager on them.)
      2. While B+ loans are fine, I don’t feel the need to pick them over verified loans. Currently I have no issues getting my money out, so I don’t have to actively push for more B+ loans going out, I just get them when the opportunity arises and I feel like it’s a good application.

  2. The best part is though that it’ll grow faster all the time. Next 64 will come in a lot less time already, if everything continues to go as well with the investments :)

    Out of curiosity, why do you use the limits on portfolio managers? You want to maintain some certain proportions of portfolio in different borrower segments?

    1. True, I’m planning to see some real increases in growth next year!

      I limit my portfolio managers mostly for diversification risks. Spain and Finland are limited for obvious reasons, since I don’t have enough faith in them yet. Out of all the others, the one that constantly gets filled up is the low credit one, it is capable of giving out enough loans that I wouldn’t have money for higher credit group loans, which is why I feel the need to limit them. (I hope that made sense.)

        1. Well, in theory I have that as well! I’m just slowly preparing for the fact that ABC1000 loans will be playing a smaller and smaller role in my portfolio, so I’m trying to balance between taking in other groups.

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