My Bondora portfolio (2015, June)

Though I’m currently enjoying a lovely 34 degrees and sunshine in Valencia, then not all is sunshine and rainbows in my Bondora portfolio. Firstly, the influx of defaulted loans is steady and secondly, since I’ve slowly reduced money invested monthly as well, then actual numbers of interest earned have also dropped.

investmentsjune

As you can see, this month ended with red + yellow loans actually totalling over 25% of current portfolio value. One of the reasons for this is that I’m now seeing the influx of defaults from the second half of last year when I added in increasing amounts of funds. This will likely look even sadder in the next few months when I reduce the money invested further. Not that I’m looking forward to the moment when 20% of the pie will be defaulted loans but that is not completely out of the realm of potential options.

Interest earned

interesttotal

As stated, there was an actually almost 3 euro drop in interest earned, mostly due to more loans defaulting. The final total for the month of June ended up just below 100€ (99,16€), which is a bit sad since I hoped that I was over the 100€ hump for good. I’m hoping July will perform better, but so far there hasn’t been a particular influx of payments like there is at times in summer. Also, the recovery of defaulted loans wasn’t particularly great this month either, the total recovered was barely over 5€.

newdefaults

Compared to May I actually ended up with so many new defaults it was a bit surprising, 15 more stage 1 loans was a bit more than expected in comparison to the recovery. It’s still a very long time horizon plan to see anything from recovery but it’s clear how this is demotivating to see – the default rate of loans in my portfolio is getting quite high despite the fact that I’ve heavily steered towards lower risk grade loans in the past few months.

investmentstotal

Looking at the overall investments, as stated, I’ve reduced the amount I invest in Bondora per month to about 100-120€ or so, depending on how much free funds I have. This slows me down in terms of my goal for Bondora portfolio size for the year 2015, but across all social lending platforms I’m on track for 10 000€ principal value, since while Moneyzen is doing slow, then I’ve added Estateguru into my portfolio as well. Time will tell how the second half of the year will play out.

2 thoughts on “My Bondora portfolio (2015, June)

  1. I agree with you, currently almost every P2P platform is like Greece and demanding more money (exclude MoneyZen!), but actually we see less results than we could expect. I haven’t yet finalized my earnings from June, but things look worse to me also in regards of red loans expansion.

    While your portfolio recovery has been low for the month of June, maybe there is just another crisis coming? P2P sector would be the first one who takes a hit, right?

    Anyway nearly 100€ in your pocket is better than nothing! :)

  2. Have you managed to reinvest all or at least most of your repaid funds during the month?

    The interest payment drop is to be expected actually. This is most likely happening in large part already due to the risk-based pricing model since I think you’re kind of like me investing into lower-mid risk level loans instead of the risky end?

    Meaning that interest rates are significantly lower than previously and even with more money invested, you’ll actually receive less interest and it’ll slowly drop over time as the proportion of these lower rate loans increases in your portfolio, until it reaches the new lower level.

    Of course, rising overdues and defaults affects it also. My gf’s portfolio has lately seen a considerable increase in overdues as well. Hopefully that’ll simply be short time overdues :)

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