Harmoney

[axe]

New here and also just over 1 month old with Harmoney.

Have now invested in 90 different borrowers.

Mainly just 1 x note a trade.

My mind set has been mainly 36 Month and just A & B Grades.

Rather than being greedy and hightening my risk - I see that 12% return from Harmoney is so much better than the approx 3% I get from a high street bank ( 4 times ) that I will make those criteria my 'sweet spot'.

3 of the 90 trades are already in arrears - all within 1 month.

No proactive contact or status updates from Harmoney... but helpful if you call them up and ask for updates.

They informed me that soon they will start Emailing Investors proactively about Arrears and the Status of such arrears.

I am very happy with the Harmoney Investor phone support ( Fiji based ).

The Investing website has been stable and as far as I am aware, accurate for the whle 5 weeks I have been on.

All the best

Hi,

Welcome to the forum.
Thanks for sharing your Harmoney expirience

[WingingIt]

From the September Newsletter. Interesting feature.

"and finalising a new product that we’re introducing in October called Payment Protect. In a few weeks you’ll be receiving a detailed product description by email, and be able to read about it on the website. In the meantime, here’s the 30,000 foot view...
What is Payment Protect?
It's a repayment waiver offered to borrowers to help protect them against unexpected events that may impact their ability to make loan repayments, such as job loss, sickness, disability or death.

How does it work?
Borrowers pay an additional Protect Fee as part of their monthly loan repayments. In return, investors agree to waive their repayments under certain conditions.

How does this benefit Investors?
Investors earn the Payment Protect fee plus interest, less the cost of claims and fees. It is expected that loans with Payment Protect will add additional yield to investors of over 1% per annum on Payment Protect loans, on a portfolio basis.

Investors in loans with Payment Protect may also benefit from reduced defaults as they are waiving repayments at a time in a borrower's life when there may otherwise be a high propensity to default."

[Kees]

I certainly will not be investing in these loans.

[mjplost]

I certainly will not be investing in these loans.

Agreed, no real value to investors from my point of view. I am hoping that these will be clearly labeled.

[winner69]

You guys might be interested in this - how p2p going in Britain

http://citywire.co.uk/Publications/W...ep--email--pdf

[mjplost]

Anyone else getting an increase in paid off loans? I am assuming this is due to re-writes?

[Cool Bear]

Yes, I have only been in for about 4 months and about 3% of loans have been repaid - but that is ok a figure to me. Heaps of loans in arrears and my first default today LAI-00024377 E5. Expect a lot more now that I am in the 4th month from the long list of arrears. Hopefully not more than Harmoney's predicted default rate.

[Soolaimon]

Anyone else getting an increase in paid off loans? I am assuming this is due to re-writes?

Last 2 months havn't been too bad for pay offs, but before that I was getting 1 every 2nd day there for a while. Harmoney does expect that about 28% of loans will be paid off before maturity and so far that looks to be about right. Been in for over 12 months now and quite happy after a few niggles early on. 10 loans in arrears and no defaults.

[mjplost]

Yes, I have only been in for about 4 months and about 3% of loans have been repaid - but that is ok a figure to me. Heaps of loans in arrears and my first default today LAI-00024377 E5. Expect a lot more now that I am in the 4th month from the long list of arrears. Hopefully not more than Harmoney's predicted default rate.

I invest mainly in C and D grades and currently only have 2 in arrears, which I think is quite good.

Although, I think this number will greatly increase with Christmas just round the corner.

[Halebop]

14 Months investing via Harmoney:
Invested $12,000 over a short space of time then paused, unhappy with data quality and various back of house issues
Started investing new funds in the last week or so
All returns re-invested
Currently around 90% 3 Year, 10% 6 year terms
Generally invest just $25 per loan except for a handful of mistakes where I've doubled up in error but will rethink this approach with my escalation of commitment vs typical available loan volumes
Focus on B to E Loans, E appear to be a modest pricing sweet spot when compared to expected default rates. I personally think F are mis-priced and avoid them

Stats to Date:
791 loans made
163 early repayments
625 Active loans including those in arrears
3 Defaults (around 97% of loan values)
Typically 50+ arrears at any moment in time
Annualised, around 18% pre-tax, 13% after-tax in the 1st 12 months

"Payment Protect" Product:
I've run payment protection insurance schemes for loan products and credit cards. Managed properly they make great profits. Employment shocks can impact short term but this tends to be offset by high returns in good times. The devil is in the detail and I'd advise those opting out before it is even launched to understand it first. I'm interested but want to understand the specifics...