Harmoney

[777]

It is such a pleasure when I log into both Lending Crowd and Squirrel to find there are no write-offs and seldom any arrears either. When I log into Harmony the first thing I look at is the Write-offs to see how much it has grown.

But which platform gives you the best overall return?

[Investor]

It is such a pleasure when I log into both Lending Crowd and Squirrel to find there are no write-offs and seldom any arrears either. When I log into Harmony the first thing I look at is the Write-offs to see how much it has grown.

You've probably invested heavily in D, E, F and don't understand what variables to consider when investing in loans if this is your experience.

[Saamee]

It is such a pleasure when I log into both Lending Crowd and Squirrel to find there are no write-offs and seldom any arrears either. When I log into Harmony the first thing I look at is the Write-offs to see how much it has grown.

Squirrel have had write offs.... but as they operate a 'Slush Fund' we as Investors do not lose out...... yet!

SMW.jpg

You can always check for the up to date details here :> https://www.squirrelmoney.co.nz/look...er-your-money/


Note: Thanks to KELVIN for the web link which he provided months ago.

[JohnMac]

You've probably invested heavily in D, E, F and don't understand what variables to consider when investing in loans if this is your experience.

I have been an investor with Harmony almost from the beginning. Had +200K invested at one stage but now down to $93K. Most of my loans are A 45%, B 30% and C 15% the remainder D with some E and F. Charged off principle $634 and RAR 12.87% - I know exactly what I am doing and still think that of the three Harmoney is still the one with the most risk. Lending crowd RAR 13.11% and Squirrel 8.95%. My gut feel is that when times get tough and sooner or later they will, it be my Harmoney loans that will be the highest risk of defaulting.

[Darchie]

I have been an investor with Harmony almost from the beginning. Had +200K invested at one stage but now down to $93K. Most of my loans are A 45%, B 30% and C 15% the remainder D with some E and F. Charged off principle $634 and RAR 12.87% - I know exactly what I am doing and still think that of the three Harmoney is still the one with the most risk. Lending crowd RAR 13.11% and Squirrel 8.95%. My gut feel is that when times get tough and sooner or later they will, it be my Harmoney loans that will be the highest risk of defaulting.

I agree with you JohnMac and think 'investor' posted in haste

[Bjauck]

I agree with you JohnMac and think 'investor' posted in haste

I agree too. However it does depend on the grade of note you invest in and the differing risks may be reflected in the gross interest offered. Taking into account the greater investor fees payable to Harmoney, I think you should start by comparing the Lending Crowd range of loans with the loans available from Harmoney in grades C4 (gross interest at 22.06%) and above.

[whitt]

The P2P stats out of the rest of world show some interesting data.
High risk grades get hit hard during a reccession and lower grades out perform during that time Whilst th eopposite is true during boom times.

In theory you could:

In the years prior to a recession when signs are the economy's might turn begin by investing in lower risk grades. That way if a recession does hit in say 2 years you havent got high risk 60 month grades still out there.

[Broke]

im running out of loans to invest in.. im at 800 loans and I have trouble re-investing it all back, i still stick to 25$ per loan.. Thinking of putting more money into the ones with payment protect. Wonder if its better than the ones without

[Investor]

im running out of loans to invest in.. im at 800 loans and I have trouble re-investing it all back, i still stick to 25$ per loan.. Thinking of putting more money into the ones with payment protect. Wonder if its better than the ones without

Payment protect adds the risk of Harmoney waiving repayments for the borrower and you not recieving these payments as a result. Overall it has been suggested you will get mildly better returns but it isn't really worth it generally speaking. Due to the lack of loans (that autolend will pick up for me) I'm considering it myself.

[alistar_mid]

I agree too. However it does depend on the grade of note you invest in and the differing risks may be reflected in the gross interest offered. Taking into account the greater investor fees payable to Harmoney, I think you should start by comparing the Lending Crowd range of loans with the loans available from Harmoney in grades C4 (gross interest at 22.06%) and above.

The P2P stats out of the rest of world show some interesting data.
High risk grades get hit hard during a reccession and lower grades out perform during that time Whilst th eopposite is true during boom times.

In theory you could:

In the years prior to a recession when signs are the economy's might turn begin by investing in lower risk grades. That way if a recession does hit in say 2 years you havent got high risk 60 month grades still out there.

I have got a pretty decent excel model, off the report data I can reconcile my RAR exactly, and forecast future RAR based on portfolio mix and long term platform stats.
I've run a sensitivity analysis on my portolfio mix, basically need defaults to increase by 500% to have RAR hit 0%. Based on a 10 / 25 / 22.5 / 20 / 17.5 / 5 % portfolio mix.

Obv move it towards more A / B and you have a greater resilience for a recession scenario, but it really requires default rates to skyrocket for RAR to be negative.