Social lending portfolio (February, 2016)

February passed so quickly that I didn’t really even have time to do much. However, despite the shortness, it was a nice growth month, with several interesting things happening on many P2P portals.

Bondora personal portfolio

Interestingly enough Bondora was by far the biggest surprise this month – after such a long time of investors complaining about all the things, they seem to have taken the investors’ wishlist and just started crossing off all the things that have piled up in the past few years. New cash flow & dashboard components allow for some interesting modelling options for your portfolio’s future. I haven’t had too much time to play around with it, but I must admit I like what I’m seeing!

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Interest returns are now slowly starting to drop (to 108€) due to the fact that I’m slowly starting my exit. I’ve transferred out my first 450€ (which is being sent to work on the stock market). I’ve also started to slowly sell parts of my portfolio that will be selling at a loss – I don’t have to take into account any taxation issues on those, and at this moment selling large amounts of loans on the secondary market is definitely not comfortable. However, I’ve started to scan through my loans and started selling off defaulted loans that haven’t really started to recover and loans that are suffer from pricing issues (old HR loans with 20%-ish interest rates). It takes some playing around with discount rates, but I’m happy with how it’s going so far. The loans I’ll sell with a premium I’ll start selling Jan 2017 – meaning the tax obligation hits summer 2018.

Bondora business portfolio

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The business portfolio is growing as planned. I’ll hit 200 loan pieces soon and then I’ll likely increase the bid size a bit. Overall absolutely no issues with money going out (I’m not using too strict criteria – just country & credit group limited). I must say I am pleased with the pricing changes since it’s clear to see when comparing my two portfolios that loans that are priced with the rating follow expectations reasonably well – AA, A, B loans are showing very good payment discipline, I hope the likelihood of defaults is also correctly determined, as my portfolio grows I’m becoming more of a fan of slow and steady.

Omaraha portfolio

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Omaraha is doing slow and steady, most important news is that there was an announcement that they’ve received the permit needed to keep functioning from the Estonian Financial Authority. Still, Omaraha has some downsides – at this point I haven’t had any loans go out for 8 days (usually the rate is about 1 loan/day). I’m wondering if it’ll start moving or I’ll have to play around with the interest rates. I like their no-hassle system but lack of a secondary market is making me balance investments between different portals, and not letting Omaraha move too far ahead.

Mintos, Twino, Viventor

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Interestingly enough the Latvian buyback triplets caused most hassle for me this month. Mintos could still use some usability upgrades, and it’s become clear that short-term investing there isn’t viable due to a lack of short term loans. However, my hopes for Twino becoming a major player in my portfolio were dashed with their brutal interest cut and some recent communication blunders. I did start investing in Viventor as well, but that’s mostly play-money at this point as they build up their reliability.

Definitely interesting choices to be made here in the near future – if the Latvians had managed to keep going as well as they were for the next few months, I think they would have wormed their ways into investors’ hearts even more, but as it stands, making decisions to divide my P2P portfolio is becoming difficult with all sites having some downsides.

Crowdestate portfolio

I contributed a small amount in the most recent CE project. A new one is opening for this months, I’m interested to see what it is. As it stands, the first round of investments that I’ve contributed in are starting to finish up, so I hope that the reinvestment snowball will start rolling at some point.

Estateguru & Moneyzen portfolios

Did not add any new money to either. Would probably exit if possible (at the very least to switch to business portfolios), but both stil lack a secondary market. At least my investments in MZ are small enough to get reinvested rather regularly. With Estateguru I’m just stacking up money to probably transfer it out at some point.

8 thoughts on “Social lending portfolio (February, 2016)

  1. Hello, you dont have any investments with Estateguru? I was thinking of opening account there but it looks to me there are not many loans avaiable for investing…just 3-4 per month.

    1. Hey! I do have an account at Estateguru with some investments. It’s just my private account though, so I don’t really want to increase it – since there is no secondary market yet. While there are only 3-4 loans per month, then the min investment is 50, and it’s relatively easy to add larger sums as well, so there is at least some volume available (since it’s real estate loans, projects are in the 50-100K range generally, with <75% LTV values).

      P.S, if you do register with them, feel free to use my recommendation code for a 0,5% cashback on investments 😉 (EGU05422)

      1. :) btw what is your experience with omaraha when it comes to defaults, in FAQ I read they have some kind of warranty fund which would cover 60%-80% of invested sum if a borrow is late with payments

        1. They have a partial buyback – if a loan is delinquent for 60+ days at one point their warranty fund buys back ~65% of the remaining principal. I’ve invested with them for 3 months, so I don’t have loans that have been bought back yet, but from friends who invest there, their experience has been that the system works well and buybacks happen reasonably.

    1. I mean exiting it with your personal account. Is this because you would like to start investing with your company?

      1. Yes, I’ve already started to build a company portfolio, and it will pass my personal portfolio in a few months already due to investing pre-tax money. The tax savings are also hundreds of euros for me.

  2. Bondora also has a completely different recovery system – buyback does have its value when it comes to evaluating speed of exit. Also, at one point it’s just reasonable to diversify across portfolios.

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