December was by all counts a super strange month in Bondora. Firstly, I added in significantly more money than usual to hit my investment target and half way through the month the new credit groups got launched which essentially caused chaos in the forums and made investors scramble to figure out a new strategy for investing.
Overall December was a nice month. Despite all the chaos most of the money I added in went out as investments, so as of the end of the month the outstanding principal of loans crossed the 4500€ mark! December also hit another high point for interest earned, finishing the month at 74,92€. There will likely be a nice jump in January since a lot of the last payments that should have been made in December got pushed into January.
Due to the chaos of the new credit groups going out and some of the loan applications being cancelled manually then of course the graph for loans ended up getting really messed up because about 150€ worth of loans went out only to be cancelled. Luckily most of that happened rather quickly, but some money was just sitting under bids with negative returns waiting to be cancelled. Hopefully they manage to get the automatic cancelling of those loans going so they don’t mess up the returns chart. (The repaid principal number gets messed up pretty badly when so many loans bounce, and since the cash flow page is still broken as hell, then Bondora visuals/data are even more useless than usual.)
Loans given out
I let my old portfolio managers work as before while picking some extra loans manually at the end of the month based on the new credit groups. I got quite a few more loans than usual (total of 82), and took in much more Finnish and Spanish than usual since I hand picked some high credit rating loans. I’ve opted to somewhat trust the Bondora rating system but it still has multiple problems with the new portfolio manager that I’ll write about further later on.
Overall the loans given out ended up being like this:
– 0 x AA, 1 x A, 8 x B, 8 x C
– 14 x D, 13 x E, 18 x F, 20 x HR
As you can see, low credit ratings are much more likely. This is going to cause significant issues with the new portfolio managers since people will opt for high grade loans since they want to get good Estonian loans and they don’t trust the credit rating (yet). I’ve been playing around with the numbers of the new manager and I’m not going to opt out of HR loans, but I guess I’ll have to see how easy manual picking will be – at least in December I picked 15 loans manually since they didn’t fill up, likely because many people paused their managers.