Harmoney

[permutation]

principal

[myles]

Your cash to invested ratio is fast dropping and giving the rest of us a chance to get some notes through autolend.

Nah, got more to put in yet, gotta build that princip--al...

Hoping to get to around 100K, which looks like it will need a bit under 3K reinvested per month, doable if you are not to picky with loans? But sounds like it might take some manual intervention to keep up with...

[Cool Bear]

Nah, got more to put in yet, gotta build that princip--al...

Hoping to get to around 100K, which looks like it will need a bit under 3K reinvested per month, doable if you are not to picky with loans? But sounds like it might take some manual intervention to keep up with...

I estimate that if you have 100k, you will have about 7k to 9k each month to reinvest as repayments (including early repayments) is about at that 7 to 9% level from my experience.

[myles]

I estimate that if you have 100k, you will have about 7k to 9k each month to reinvest as repayments (including early repayments) is about at that 7 to 9% level from my experience.

What sort of mix of 36 and 60 mth loans is that based on - seems high - 7 to 9% per month is ~100% per year!? Do those numbers include interest?

[Cool Bear]

What sort of mix of 36 and 60 mth loans is that based on - seems high - 7 to 9% per month is ~100% per year!? Do those numbers include interest?

80% 60mths, 20% 36. Yes including interest. Mostly from early repayments. Bear in mind that it is 7 to 9 % of the balance. I estimate that if I stop investing and start withdrawing whatever cash available, I should be able to withdraw 50 to 67% of my balance within a year.

[myles]

80% 60mths, 20% 36. Yes including interest. Mostly from early repayments. Bear in mind that it is 7 to 9 % of the balance. I estimate that if I stop investing and start withdrawing whatever cash available, I should be able to withdraw 50 to 67% of my balance within a year.

Thanks for that info. With that sort of potential withdrawal rate the overall investment 'risk' is lower than I first thought. A good thing in my view, but others might see it differently.

Out of available funds at the moment , moving $'s can be a slow process sometimes... At least I've hit the 17.5% fee now, could be a couple of months to get to 15%...

[darrenc]

Nah, got more to put in yet, gotta build that princip--al...

Hoping to get to around 100K, which looks like it will need a bit under 3K reinvested per month, doable if you are not to picky with loans? But sounds like it might take some manual intervention to keep up with...

I've got about that much invested and it's very difficult to maintain it. So much so that I don't let it increase any more; I pull out anything extra and put it into Lending Crowd. You can invest bigger chunks in LC because it's secured, but the rates are lower. Having said that, I'm on 16.5% with Harmoney and 13.9% with LC, so it's not that much different. With LC you have to be in there within a minute of receiving the email to get a B2 (18-19%) and usually within 5-10 mins to get a B1. The A1 and A2 loans hang around longer.

For example, this morning I had $500 in Harmoney. I've invested in 3 loans today (but they are more risky ones where I put in one or two notes as opposed to four). I still have $600 in the account...yes, despite investing, I have more available than at the beginning of the day. On days when I have a lot of meetings, I can accrue $300-500. To keep to my target of 1000 loans minimum, I can't put in any more than 4 notes, and I have reasonably strict criteria.

So, at that level, I've never had an autoloan filled, I just have to monitor it frequently.

[Cool Bear]

I'm on 16.5% with Harmoney and 13.9% with LC

Well done. Those are high figures for significant amounts invested. Mine are just 14.1 and 11.87 (LC). Still happy though.

[BJ1]

Well done. Those are high figures for significant amounts invested. Mine are just 14.1 and 11.87 (LC). Still happy though.

I haven't gone to the trouble of determining if Harmoney's expected default rates are consistent with historical performance but if they are then an investor with high return expectations need only invest in c grade loans to achieve an average gross rate of 19.66% and an after default return of 16.53%. No need to cherry pick better loans if 16.53% before Harmoney's fees is what is wanted. Also, don't touch F grade as the after default after fee returns are less than in E grade. In general the risk of default affecting net portfolio return hardly alters if the number of notes is increased quite significantly, once total portfolio value exceeds a "decent" size - say $40,000. As long as a portfolio has good spread the actual return should approximate the expected return. Once a portfolio exceeds my magical $40,000 there is insignificant additional risk in increasing individual exposures above 4 notes.

I do cherry pick my loans across A-E grades with exposure weighted towards A & B and my average original loan investment is $675 and current weighted gross average interest rate is 17.67%. No losses to date, $83 in arrears (and one A grade loan which had a payment holiday of 6 months and still seems at risk).

[Snow12]

So, at that level, I've never had an autoloan filled, I just have to monitor it frequently.

I have a much bigger level than that and still don't get any Auto Loans. Do get many that meet my Auto Loan rules manually so think the whole Auto loan is a rout.

I'm surprised about no one noticing that the majority of new loans these days are all rewrites. For example just had a look and 8 loans listed and 7 were rewrites. That's seven loans the rest of us won't get much return on and then have to reinvest.