The creator of the service posted this just yesterday on the LC thread....
http://www.sharetrader.co.nz/showthr...l=1#post658477
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The creator of the service posted this just yesterday on the LC thread....
http://www.sharetrader.co.nz/showthr...l=1#post658477
Thanking you :)
yikes! reach a milestone I rather not have. 100 defaults. 21months in, 4300+ loans in total with a bit less than 3000 active. The rest paid off.
You are so right BJ1, it has made me re-think, and put a bit more effort in. Was just a bit frustrated as things were working so well, now they are not. Every time I log in, all loans seem to be gone. Will just have to try a few more times a day. Cheers
That is a very good question.
19.9% before taking recoveries into account and 19.5% net of recoveries. Based on Harmoney estimates, should only be 11.07%. So Harmoney's estimates are a bit low.
How about yours? actual vs estimate? and how many months have you been in?
Have done a few permutations of my account. Been in 23 months with 1000+ loans invested, my (Charge-offs $ amount v Gross interest) is 12.1297%, but when I add net payment protect fees outstanding, that reduces the loss to 4.6964%. My ($Loss v Outstanding Principal including net PP Fees) today is 0.7882%.
I have had only 2 Charge-offs from Grades A1-D5 inclusive the other 11 from E and F, hence I now avoid lending for these grades.
I have been in since January 2015. Net write offs are running at 5.9% of gross income but my portfolio is probably more conservative; 77% A and B, 16% C and only 7% in the rats and mice. RAR is 12.65% with which I am more than happy. I usually invest 12 notes in A, 8 in B, 4 in C and 2 in the rest.
Yes, I supposed comparing defaults percentages does not mean that much if we do not take into account the risk spread. Mine had definitely a higher risk profile than yours, thus more defaults. But then my RAR is also higher at just around 14% and I am trying to edge it closer to 15%. The increased fees last year is not helping. Overall, like you, I am happy with the investment.
Kudos to Harmoney for the new RAR by unique loans chart in their market stats. Put your cursor over any dot and it will tell you the number of unique loans that investor has and his/hers RAR - eg the one with 10904 loans at 20 Feb has an RAR of 13.81%. Well done to that person.
Well done too to the one with 4468 loans and RAR 16.59%. I presume anyone with more than 4000 loans will have to be invested for more than 18 months - when the defaults starts to stabilise and evens out. In the first 9 months, the defaults are not really representative and the RAR may be higher than it will eventually be. This is assuming that one stays invested and adds to the investment over time as oppose to an investor that put in one lump sum at the beginning and hardly anymore thereafter.