Originally Posted by
myles
But that principle earns interest, so you can't simply remove it.
I don't agree, but that's my take. There is so much going on in the early phase that pretty much any numbers will be of little value - better to wait for things to mature a little. An example is your example of 50% over return on an individual PP loan over, I assume, a very short period - completely pointless to consider this in this way. It's like fully valuing in a upfront fee at the start of a loan instead of across the whole period of the loan which it actually applies to.
No it doesn't, they are completely different things. There is no point comparing RAR with XIRR, sorry, I think you are wrong here.