Harmoney

[myles]

Any chance you can go back and delete those default rates as they are very confusing? As I said I'm happy to put them up when/if Harmoney publish them. Thanks.

[beacon]

Any chance you can go back and delete those default rates as they are very confusing? As I said I'm happy to put them up when/if Harmoney publish them. Thanks.

Don't know who you are referring to myles, but happy to oblige

[leesal]

Attachment 9667

First charge month after 9 months. Went straight from current last week to charged.

E grade not looking too flash hot. 10% of loans outstanding are in arrears. As for installments, 324 have been paid (14 arrears + 56 charged). Currently its projecting a 3.5% return on that grade.

[Bjauck]

Attachment 9667

First charge month after 9 months. Went straight from current last week to charged.

E grade not looking too flash hot. 10% of loans outstanding are in arrears. As for installments, 324 have been paid (14 arrears + 56 charged). Currently its projecting a 3.5% return on that grade.

Yikes. Is that a pre-tax return?

[leesal]

Yikes. Is that a pre-tax return?

For grade E yes thats my pretax. (based on writing down arrears >60 days)

Overall its 12.3%. RAR 14.4%.

[myles]

Best review your selection criteria/process...

[leesal]

I'd say so.

For starters will get E down from 15% to 10% or less of book (was 20% at one point). Can afford to be much pickier!

That said Harmoney have some as current that I've written down. Eg this one being 4 payments behind. Could be hardship criteria, so maybe there is some upside.

Capture2.JPG

[777]

I wish that Harmoney were a bit more efficient in getting the Tax Certificates available to download.

[myles]

I'm guessing, but it looks like you may have bought into E's fairly heavily in the lead up to Christmas In my opinion this is not the best approach. If you go back a little way in this thread I highlighted that there is some thinking that P2P lending tends to follow a similar 'default cycle' as credit cards. Credit card repayments/defaults take a significant hit from purchases made in the lead up to Christmas...

I back right off taking loans during the lead up to Christmas, selecting only 'good' loans to try to counteract this. The issue I've had is that there are not enough 'good' loans at that time of year, so available funds increase. These available funds sit uninvested with zero return. I struggle with this one to know what is the best approach - invest in loans that you know have a higher rate of default, but at least have the money invested and make a return (or not?), or hold back the funds and invest when the 'danger' period has passed.

Won't know the answer for a couple of years...

It maybe a good approach to invest in loans with lower interest rates (and lower default rates) in this period than you would normally take - to keep available funds to a minimum?

[leesal]

Very slack on the tax cert.

You have a conundrum there. Might be too much bother to withdraw funds, and whack it into the bank at 3%. Alternatively just spread some additional investment through the year, so you are overweight at the leadup, and can scale back easier.

As for my own results definately something in that effect! December I invested $1000 invested. Est chargeoff $24, post tax return 10.5%

However next year I'll ease off earlier, my November numbers are shocking! $1750 invested, interest earned $159, projected charge off $131. Post tax return -0.6%.

Compare Jan18 $2500 invested, no est chargeoff, 17.5%. February to now similar (8.7k invested and 16% return)