Quote Originally Posted by myles View Post
The calculations of RAR and XIRR are quite different?
Yes, the calculations are different but in theory, they should yield the same results as both are based on actual cash flows. The difference will be due to Harmoney not taking into account cash sitting in our account and also when we do our own XIRR, it is after tax. Even if we add back tax, the result will be different as timing of payments is very important in the calculations (time value of money).

I think HM's RAR is quite reliable. As to why some of the investors here have RAR dropping, it can be explain - can be quite a few things, they have taken up a lot of loans recently and the interest have not been received yet, or their arrears have grown (again interest not received yet), or HM had a backlog of processing payments by borrowers (I notice that they do it in spurts), or the effect of the lower interest on the new loans since mid August.

As for BJ1 post, I am not able to think how that 130% (3 unique loans) can be achieved so must be a mistake or .... The others can be due to timing. Eg. the high losses, if you lose all your money in 6 months, your RAR is -200% (annualised)