Quote Originally Posted by BJ1 View Post
If you had invested everything on day one in a basket of loans averaging out at, say, C1 (about the middle of the platform exposures) you could expect to lose a lot less than 10%pa of your total interest. Perhaps your risk profile is to the high end but it seems to me more that you are experiencing a higher loss rate than Harmoney predicts.

After 27months I've lost $668 of my total interest of $18,329. My RAR is 13.41% so even with your higher losses you are making a better net return than I am. The difference being that I keep my higher return exposure under tight rein because I dislike the high rates borrowers pay.

Perhaps too many investors (and I'm not suggesting this applies to you) look at their losses instead of their net return? Also, it seems too many look at RAR instead of projecting forward.
I am quite happy with my slightly over 14% RAR. Trying to increase that to 15% without taking too many risks. I take bad loans as part of the game although it is still not nice to have them. A lot of the bad loans due to the initial investments as I went into Harmoney quite big in the first 6 months. I am still taking E and F but very minimal in terms of $value. Bulk of new loans I take are now in AtoD.

I do think that Harmoney's estimate of default rates are a bit understated (at best).

Like many on this forum, 30+% is sinfully high interest to me. But then at least with Harmoney, it is all transparent and the borrowers do not get any serious threats if they are late in paying.