Attachment 11926
BJ1, considering where your loan spread is, I think you've done very well. I took on a bit more risk for a bit more reward, but not all that much compared to you. (100K Invested).
Printable View
Attachment 11926
BJ1, considering where your loan spread is, I think you've done very well. I took on a bit more risk for a bit more reward, but not all that much compared to you. (100K Invested).
Attachment 11928
God knows what I did wrong but I did it spectacularly. Low risk and high charge-offs!!!
How many loans did you take ?
One way or another most of my working life has been in financial risk analysis. I've always looked for anomalies in presented information so did read the stories on all loans. That is where the systems used by such as Harmoney leave gaps because they can't analyse the info in that way. In our Covid world I'm happy to have taken the approach I did which saw me up to 50% invested in 36 month loans which have been coming back rapidly. Those not refinanced by now are where I may end up taking more hits, but I'm glad I'm not at the high risk end, given expectations of another 100,000 or more out of work in the coming year.
Thought someone discovered that 60 months had more of a quicker payback ie early repayment, more churn etc, instead of going full term. Maybe the 3 year peoples are more procrastinators and have general loans bad outlook- hence borrow for as little as possible, but in general dont juggle the loan as as much. Usually when offered a loan - people have a tendency to go for as long as possible and as much as possible - maybe with outlook to refinance two years into it to a cheap rate. It would be interesting to see 3 year to 5 year early repayment stats - but dosnt matter now as harmony has gone.
We all know Heartland Bank for their large Investment in Harmoney.....
This week they got my NZ Bank business with this deal......
Attachment 11971
I have a different approach again I have ended up with high write offs but a fairly high RAR too
30.75% gross write-offs/ gross interest
29.44% net write-offs/ gross interest (which I think is more important figure vs what some others have quoted)
14.69% rar
5047 unique loans
My Rar has been ever so slowly climbing since I stopped making new investments. But has pretty much always been above 13.8% usually above 14%.
It's quite sad that effectively good honest people (the majority) are paying very high interest rates to cover the debt write-offs of bad people (the minority). The issue is exacerbated by the manner in which Harmoney loans money based on algorithms which are open to deception and abuse while being reluctant/uninterested in chasing bad debts. No security lien adds to the problem which is what sets Lending Crowd high above Harm-Money.