i correct myself the number harmoney gave me was 3% per month which I forecast with, my actual for the last 12 months has averaged at 5.5%, with 10.43% in December.
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I've been investing in Harmoney for 3 years now. I have reviewed my returns very carefully as I manage 3 sub-portfolios within the total invested and I am confident that Harmoney's RAR is accurate provided investors accept two matters: the RAR does not include any money in "cash" awaiting investment and the calculation is rubbish for those few investors with minimal investment who suffer a writeoff in excess of interest earned, within the first 12 months.
I can model a similar scenario (35% early repayment, randomised data, platform 1.0 rates + defaults) and iterate until find a similar result (below). Using the reinvestment assumption gives 12.6% gross pa. Wouldn't swear by it, but gives you an indication. Still pretty good considering the high number of defaults
Starting Capital 6500 Out Principal Y1 2387 Out Principal Y2 866 IRR% 12.64% principal charged 331.15 interest earned 1,170.20 harmoney fee 70.21
One of my arrears....
Last payment amount: $1.42
Payments to date: $0.25
Anyone come across something like this?
Attachment 9451
Very interesting, Leesal. On top of slipping investor margins at Harmoney and their sloppy track record of returning investor phone calls, looks like they are bad at accounting and book-keeping too. Here's an interesting case:
Principal Loaned : $50 (18.12.17)
Principal Received : $49 (03.01.18)
Status: Paid-Off :eek2:
Attachment 9452
Here is a jpg of the above case.
The platform RAR has now dipped below 11% for the first time and it's now sitting at 10.89%.
Is the shine coming off p2p lending?
Nope :) but shares might be in for a bumpy ride :ohmy:
From the market stats today, the latest (as at 6th February) stats for RAR are:
Retail 12.84%
Platform 10.89%
and Wholesale 10.18%
If you have a portfolio that return any of those percentages year after year for many years, you will be doing very well.
From the stats, you can make out that 73.3% is wholesale and only 26.7% is retail. The big boys must be very happy with their 10.18% for very little effort as they only pay us 2 to 3% for our bank deposits with them.
A noteworthy event today: after 23 months, I received my first recovered funds. Perhaps the new collections efforts discussed recently are beginning to function?
Interesting, last time I checked I had 5 loans charged off from June 2016 to April 2015, now the three oldest ones have now changed to debt sold. Zero communication from Harmoney when these went to a charged off status and still zero communication when they went to a debt sold status.
That is interesting, "Debt Sold" is a new category. Of my seven loans in "Debt sold", I have recoveries from three. I won't complain about the lack of communication if they are actually recovering some funds, I had just assumed that there was little to chance of recovering anything once charged off.