is that kinda like in the matrix where Neo saw that cat twice and goes "deja vu" and trinity goes "what did you say?". "deja vu" says Neo.
Trinity then goes on to explain that a deja vu moment means theres a glitch in the matrix
You mean like that?
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theres F all loans right now. My auto lend only did 2 loans over the week..
More accurate credit rating should help Harmoney better assign credit grades
http://i.stuff.co.nz/business/money/...-credit-scores
Are E loans the best out there?
I was recently looking at Harmony's average return per grade and taking into account the loss what the actual rate of return is (at a given snapshot in time).
How are the overseas P2P market's going? NZ's harmony seems to be rocking - are we just late to the game? What are the general rates of return for other P2P companies in comparison?
average return PY average loss PY average total return PY A 11.87% 0.17% 11.70% B 15.15% 0.53% 14.62% C 20.86% 1.20% 19.66% D 27.25% 2.00% 25.25% E 35.20% 4.28% 30.92% F 39.63% 10.62% 29.01%
I get slightly above the platform return but don't touch E's or F's so struggle to see that they can be much more profitable even though they are much more risky. I also use Zopa and get around 7% but rates are much lower in UK. With Zopa you don't get to pick loans or grades and all investing is automatic (like autolend without any ability to use filters). Harmoney is better imo but the lack of volume means you do have to work hard and still have a lot of idle cash.
Hi FIsaver, are these statistics from your own spreadsheet or something Harmoney has provided?
It was off their marketplace stats page - http://harmoney.co.nz/assets/Perform...975.1473978243
third column is me just taking the (average return - average loss)
FIsave, I have been investing with Harmoney for about 18 months, but 3/4 of my funds went in about 8 months ago. These are my statistics top row is A's, second row B's etc. Net interest being gross less fees and charge-offs:
Probably too early to tell yet since write-offs are apparently loaded towards the first 18 moths of a loan, but looking like F's aren't worth the risk, A's and B's under perform in a buoyant economy (but what would happen in a recession?) and E's give the best return. But still early days yet for my statistics.
spread of net interest spread of investments Difference 14% 20% -6% 33% 40% -7% 16% 15% 1% 14% 10% 4% 16% 10% 6% 6% 5% 1%
I wonder why Harmoney has changed the RAR information as at it's latest update, appeared this morning. No longer two RARs, Retail and Platform, but now just platform.
Hello! New to the forum! I just wanted to point out something I discovered recently about the dashboard RAR. I tried doing a bit of an analysis on the dashboard RAR compared to a calculated RAR using their methodology. I obviously couldn't. But I emailed Harmoney to figure out why and found out that they actually calculate RAR using actual interest receipts in real time so they can (if they wanted) pull a real time RAR figure for you.
I also found out that the two RAR (dashboard vs calculated) were different but only slightly. The kicker was that they put your charge off amounts on the dashboard before they show up in your RAR which led me to believe my RAR included the charge offs. It could be that it didn't occur to me to sense check my RAR but I thought I'd share my experience.
Now on to my main question. TAX. The new taxation period is coming and I was wondering how you guys disclosed your charge offs on your tax return last year. There hasn't been any guidance from IRD but many articles by the accounting firms. The official stand is that you can only recognise charge offs if you are in the business of investing in loans. There are a number of rules and precedence that have been set but really is up to each persons circumstances. How have you guys recognised P2P loan charge offs?
Maybe they they've been quite focused on looks! As in a new font!!
D's and E's look like they provide you with the best return. However it could depend on whether you are able to deduct charge-offs for tax purposes. Otherwise the percentage of your net interest received for grades D and E that would be payable in tax could be well above 33%.
i have my browser refresh every 30 seconds on the marketplace page. There were just two E grade loans that appeared and were completely filled within 60 seconds...
Last year the numbers were immaterial for me so declared interest less fees. This year I plan to also deduct write-offs less recoveries on the basis I am an active investor (1000's of loans) and use filters and manual screening so effectively it is a home business. I don't think I am even able to identify write-offs on my UK P2P book.