That doesn't sound too good. Just as an indicator...
1. Were they all $25 investments or larger?
2. Any particular grades over represented?
3. What period of time does the $5000 cover and how big is your total loan book?
TIA Joker
Not so easy to answer as my strategy has changed with each round of fee changes.
I see my very first loan taken was on 23.9.15 , B5, 2notes taken - it's still current, not in arrears & ticking along nicely.
In June 2016 my spread was basically:
A 20%
B 28%
C 19%
D 17%
E 10%
F 6%
But recently (since fees changed to 15% ) I've taken no D-F and <6 C grades.
I currently have 98 loans written off so that's an average of pretty much 2notes each.
Loan investment shows as 127k
Interestingly looking at my current grade spread it's now 72% A&B ...
So to me i do not think it is what you could have called high risk behaviour! I just wonder how many more out there have similar high write-offs but do not admit it openly...
So to me i do not think it is what you could have called high risk behaviour! I just wonder how many more out there have similar high write-offs but do not admit it openly...
My writeoffs are much higher than yours both in $ and in numbers. But no point comparing. Our risks spread, total investments, timing of investments etc are all different. The absolute amount is not as important although it still hurts each time.
What I monitor is the RAR and also the net write-offs as a percentage of gross interest received. My RAR is currently about 14.25% and the percentage of net write-offs to gross interest is 20.5%
What I monitor is the RAR and also the net write-offs as a percentage of gross interest received. My RAR is currently about 14.25% and the percentage of net write-offs to gross interest is 20.5%
Interesting comments Cool Bear ... a lot of the write-offs seem2 start hitting firmly after the 12mth mark ...
My current RAR is 12.21%
What I monitor is the RAR and also the net write-offs as a percentage of gross interest received. My RAR is currently about 14.25% and the percentage of net write-offs to gross interest is 20.5%
These figures are concerning. I guess Harmoney doesn't spend too much time chasing delinquents (costly and we've already funded their $500 platform fee so it's our loss). It will be interesting to see what the effect is of the new lower interest rates and whether the default rates drop to the figures they've forecast. Lower interest rates with static default rates will cause lower a ROI but this won't be clear for a year or two yet.
I just wonder how many more out there have similar high write-offs but do not admit it openly...
My average loan is $671. I've had two writeoffs, the largest being $382 on a $500 loan taken as one of the first four invested back in Feb2015. I hate taking hits which is why my spread is the way it is. I'm not after top % but an average I can live with. I ignore RAR and look only to current return and my projection - which sadly is now falling with the new rates in place. Given that the opportunities for these returns are very limited, Harmoney will continue to represent a solid percentage of my portfolio - for the next couple of years it should outperform most other options, so accepting that defaults will occur is just part of the business.
My average loan is $671. I've had two writeoffs, the largest being $382 on a $500 loan taken as one of the first four invested back in Feb2015. I hate taking hits which is why my spread is the way it is. I'm not after top % but an average I can live with. I ignore RAR and look only to current return and my projection - which sadly is now falling with the new rates in place. Given that the opportunities for these returns are very limited, Harmoney will continue to represent a solid percentage of my portfolio - for the next couple of years it should outperform most other options, so accepting that defaults will occur is just part of the business.
Charge off 3% of Interest after 2 & half years invested is fantastic!
My average loan is $671. I've had two writeoffs, the largest being $382 on a $500 loan taken as one of the first four invested back in Feb2015. I hate taking hits which is why my spread is the way it is. I'm not after top % but an average I can live with. I ignore RAR and look only to current return and my projection - which sadly is now falling with the new rates in place. Given that the opportunities for these returns are very limited, Harmoney will continue to represent a solid percentage of my portfolio - for the next couple of years it should outperform most other options, so accepting that defaults will occur is just part of the business.
Very respectable figures BJ1 and a very low charge back sum compared to others. Well done!
Cool Bear, Darchie, Alistar - are you willing to share the % of: number of default loans / number of total loans and the time frame ?
Clearly this should vary based on loan grade and many other factors, but it would be a useful value to compare against what Harmoney provide.
I posted that earlier in post 2552 and 2553 but will post it here again:
Every few months or so, I analyse the results of loans up to a certain date so that the analysis is not diluted with new loans after that date.
Between June 2015 to December 2016 (18 months), I made 3726 loans. Results as at 1 July 2017.
As I cannot align the columns the last time, they are in the order:
grade
number of loans
% $current/$invested
% $principal paid/$invested
% $writeoffs/$invested
% Total
a 547 27.1% 72.9% 0.0% 100.00%
b 832 31.1% 67.6% 1.2% 100.00%
c 741 36.6% 62.1% 1.2% 100.00%
d 790 40.9% 55.8% 3.3% 100.00%
e 501 33.7% 54.2% 12.0% 100.00%
f 315 32.6% 53.1% 14.3% 100.00%
total 3726 34.3% 62.2% 3.4% 100.00%
results as at 1st July 2017 for all loans invested from Jun 2015 to 31/12/2016
note: %ages are based on actual $ value of loans not number of loans. The number of loans is just for information to give an idea of the population size
Originally Posted by joker
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