Harmoney

[Cool Bear]

More important than the number, what percentage of your gross interest has been written off?

That is a very good question.

19.9% before taking recoveries into account and 19.5% net of recoveries. Based on Harmoney estimates, should only be 11.07%. So Harmoney's estimates are a bit low.

How about yours? actual vs estimate? and how many months have you been in?

[permutation]

Have done a few permutations of my account. Been in 23 months with 1000+ loans invested, my (Charge-offs $ amount v Gross interest) is 12.1297%, but when I add net payment protect fees outstanding, that reduces the loss to 4.6964%. My ($Loss v Outstanding Principal including net PP Fees) today is 0.7882%.
I have had only 2 Charge-offs from Grades A1-D5 inclusive the other 11 from E and F, hence I now avoid lending for these grades.

[nztyke]

That is a very good question.

19.9% before taking recoveries into account and 19.5% net of recoveries. Based on Harmoney estimates, should only be 11.07%. So Harmoney's estimates are a bit low.

How about yours? actual vs estimate? and how many months have you been in?

I have been in since January 2015. Net write offs are running at 5.9% of gross income but my portfolio is probably more conservative; 77% A and B, 16% C and only 7% in the rats and mice. RAR is 12.65% with which I am more than happy. I usually invest 12 notes in A, 8 in B, 4 in C and 2 in the rest.

[Cool Bear]

I have been in since January 2015. Net write offs are running at 5.9% of gross income but my portfolio is probably more conservative; 77% A and B, 16% C and only 7% in the rats and mice. RAR is 12.65% with which I am more than happy. I usually invest 12 notes in A, 8 in B, 4 in C and 2 in the rest.

Yes, I supposed comparing defaults percentages does not mean that much if we do not take into account the risk spread. Mine had definitely a higher risk profile than yours, thus more defaults. But then my RAR is also higher at just around 14% and I am trying to edge it closer to 15%. The increased fees last year is not helping. Overall, like you, I am happy with the investment.

[Cool Bear]

Kudos to Harmoney for the new RAR by unique loans chart in their market stats. Put your cursor over any dot and it will tell you the number of unique loans that investor has and his/hers RAR - eg the one with 10904 loans at 20 Feb has an RAR of 13.81%. Well done to that person.

Well done too to the one with 4468 loans and RAR 16.59%. I presume anyone with more than 4000 loans will have to be invested for more than 18 months - when the defaults starts to stabilise and evens out. In the first 9 months, the defaults are not really representative and the RAR may be higher than it will eventually be. This is assuming that one stays invested and adds to the investment over time as oppose to an investor that put in one lump sum at the beginning and hardly anymore thereafter.

[Investor]

HM should display the borrower's monthly outgoings like LC does.

Very good point.

[CageyB]

Has anyone worked out what the current autolend threshold is? For a long time I was sitting at 3-4% of my total principal in available funds and autolend never invested anything. I recently added funds to go up to 8%, and no autolend investments so far. I do have some filters on, but I would expect something to go through.

[Investor]

Has anyone worked out what the current autolend threshold is? For a long time I was sitting at 3-4% of my total principal in available funds and autolend never invested anything. I recently added funds to go up to 8%, and no autolend investments so far. I do have some filters on, but I would expect something to go through.

There is no threshold. It is subject to change frequently. It would depend on how many people have a higher ratio of available funds to outstanding principal as well as borrower demand etc. So you're definitely not going to get a specific figure from anyone.


I found 1-2 months ago when I assisted someone I know invest in Harmoney they managed to get thousands of dollars in within less than a month through Autolend and it has since slowed dramatically around the high 2% mark. 60 month loans are EXTREMELY easier to get Via AutoLend in comparison to 36 month loans. We are talking probably 50-100x.

[RMJH]

Has anyone worked out what the current autolend threshold is? For a long time I was sitting at 3-4% of my total principal in available funds and autolend never invested anything. I recently added funds to go up to 8%, and no autolend investments so far. I do have some filters on, but I would expect something to go through.

I am finding autolend seems to just hold my loan investments with just over 8% cash. I am finding it impossible to grow my portfolio now because the loans come and go so quickly. I have upped the number of notes per loan but not changed the filters. I might try putting more cash in and see if that gets me more loans.

[CageyB]

There is no threshold. It is subject to change frequently. It would depend on how many people have a higher ratio of available funds to outstanding principal as well as borrower demand etc. So you're definitely not going to get a specific figure from anyone.


I found 1-2 months ago when I assisted someone I know invest in Harmoney they managed to get thousands of dollars in within less than a month through Autolend and it has since slowed dramatically around the high 2% mark. 60 month loans are EXTREMELY easier to get Via AutoLend in comparison to 36 month loans. We are talking probably 50-100x.

Of course it's a moving target, but with a sufficiently large number of investors in the system, at any given time it should be fluctuating around a certain band, right? (For example, 5%-6%). My only filters are "no Fs" and, importantly, "36 month loans only". I don't know if I'll be in NZ in 5 years and there's no secondary market on Harmoney, which is limiting. I'll give that some more thought.