Harmoney

[myles]

Milestone reached today:

Milestone.png

Now to reinvest Principal Received and Interest ($4,213.78)

No loans in arrears past 30 days

[permutation]

Looks like Harmoney have given up updating individual RAR's again. My last one was 03 June. The inconsistent reporting is getting tiresome.

[mccollr]

Well done Myles, I reached exactly half of your total today. But with compounding I will reach the 100k soon as well.

[myles]

Looks like Harmoney have given up updating individual RAR's again. My last one was 03 June. The inconsistent reporting is getting tiresome.

I think they indicated that they are trying to factor in the Protect Rebates, which is probably being trialled and perhaps causing some delays/problems?

[RMJH]

Anyone asked recently about adding "Enquiries" to the filters? Is there any way to get data on defaults vs enquiries? Anecdotally this seems like a good indicator and one I would like to add as a filter.

[myles]

Anyone asked recently about adding "Enquiries" to the filters? Is there any way to get data on defaults vs enquiries? Anecdotally this seems like a good indicator and one I would like to add as a filter.

Enquiries Last 6 Months is a column in the 'Loans Export Report' so you could review your own loans.

From what I've seen, I don't think it is usable - it seems many borrowers shop around quite a bit before settling on Harmoney as the Lender, hence the 'Enquires Last 6 Months' can be quite high, even for the 'good' borrowers. Just my observation.

[RMJH]

Enquiries Last 6 Months is a column in the 'Loans Export Report' so you could review your own loans.

From what I've seen, I don't think it is usable - it seems many borrowers shop around quite a bit before settling on Harmoney as the Lender, hence the 'Enquires Last 6 Months' can be quite high, even for the 'good' borrowers. Just my observation.

Thanks. Good points. I did notice that of my 67 writeoffs only 21 had a single enquiry. Does feel like more listings have multiple enquiries theses days including re-writes but don't have data to back up this impression. Will do some data mining in due course.

[777]

Looks like Harmoney have given up updating individual RAR's again. My last one was 03 June. The inconsistent reporting is getting tiresome.

Updated this morning as at 17/6/17

[myles]

Interesting anomaly on my first RAR (I hope).

Listed today as 11.60% as at 17/06/2017.

Current XIRR: 17.3% (which includes reduction due to tax, but not losses due to defaults as yet).

I see this discrepancy due to three things:

1. The first month investment was relatively small (initial cautious approach)
2. The amount invested in a short period of time
3. The RAR calculation includes the last month investment, but not the bulk of the resulting interest for that month

Based on the above I'd hazard a guess based on the ratio of investment in the last included month:

(1 + (33149.33/85424.52)) * 11.60 = 16.1%

However, my initial month included significantly more A and B grades, so I think 16.1% is very conservative.

I guess I'll just have to wait a few months to get a more meaningful value...

My conclusion - RAR is not a good base value to use early, and over time gives a poor indication of 'current' earnings - using XIRR is likely to be a much better choice.

RAR.png
Harmoney RAR graph.

[CageyB]

I'll post my results so far. I've been investing with Harmoney since April 2016. My investing is probably a bit unusual in that I only invest in 36-month loans. I also do not invest in F-grade loans. I haven't attempted doing any of my own RAR calculations, everything below is generated by Harmoney.

Total number of loans: 597, no more than 4 notes each
Loans paid off early: 164
Amount invested (deposits): $18,275, all interest re-invested
Gross interest received: $2,374
RAR (as reported): 16.92%
Current grade distribution by $value(approx): A=21%, B=25%, C=20%, D=19%, E=15%
Amount in arrears: $48
Number of loans in arrears, not counting those listed <30 days: 12
Arrears breakdown by grade, again not counting those <30 days: A=0, B=1, C=0, D=4, E=7, F=not invested
Loans >180 days in arrears: 1, grade E5
Charged-off: $0