November wasn’t a particularly exciting month in social lending. Due to upcoming changes to credit scoring systems in Bondora it seems that there is a kind of an air of expectation from the investors’ side on how the changes will be implemented. The most important point of the change seems to be the fact that returns will likely drop for more selective investors and rise for investors who don’t analyze the data. This potentially means that managing a Bondora portfolio will become much more passive, but time will tell.
Overall November was a good month. A lot of rescheduled loans started paying again, so the interest return for Bondora was once again an all time high, ending up at 71,93€. (6,4 euros more than for October.) December will likely be a slow month due to a lot of payments being pushed into next year, but the 100€ interest goal is coming closer quite quickly.
It’s also interesting to see how Bondora compares you to other investors. I’ve always had relatively high returns, the site still shows my returns at 25% but it has now very slowly started to drop, so I’ll have to see how this number starts changing when the new credit group system becomes active.
Overall, I had a lot of loans go out in November. The biggest change was the fact that I actively started to take in B+ loans, and instead of picking them manually I just added a portfolio manager to take in 10 B+ loans every month. Since the amount of loans I’m giving out is slowly increasing every month then diversification starts becoming an issue since I don’t want to put too much money into A1000 loans compared to other loan pieces.
The total for loans given out in November:
40 loans in total (1 Spanish, 2 Finnish, 37 Estonian loans).
Out of the Estonian loans 10 were B+ and 27 were verified.
Out of the verified loans the breakdown was:
– 3xA1000, 3xB1000, 7xC1000
– 4×900, 3×800, 2×700, 5×600.
As you can see, not a particularly great month for 1000 credit group loans. B+ loans have proven themselves over time though, so I’m expecting to let their number increase maybe to 15% of my overall portfolio. Also, defaulted loans are really starting to get some sort of a rhythm when it comes to making payments, about 1/3 of my defaulted loans that are at least half a year old are making some payments so that’s good to see at last.