Harmoney

[humvee]

only 20% of my loans are 60m and writeoffs are also 20% and repaid 22%. Inconclusive for me but you seem to be getting a benefit from the longer loans. I have read US data that suggests writeoffs normally happen early in the loan (regardless of 36 or 60m) which bodes well for you.

Just pulled the stats from a smaller and lower preforming (12.05% RAR) portfolio I have access to

Out of total loans


49% are 60 Months
51% are 36 Months


60% Of writen offs are 60 months
40% Of writen offs are 36 months


33% of paid off loans are 60 months
67% of paid off loans are 36 months

[Harvey Specter]

Just pulled the stats from a smaller and lower preforming (12.05% RAR) portfolio I have access to

Out of total loans


49% are 60 Months
51% are 36 Months


60% Of writen offs are 60 months
40% Of writen offs are 36 months


33% of paid off loans are 60 months
67% of paid off loans are 36 months

Opposite to your other portfolio then. So from our very limited sample, the only way to increase RAR is to invest more!

I assume this smaller one is more conservative (A's and B's) to have a RAR that low?

I have been avoiding 60m loans while there is no secondary market as waiting 5 years to liquidate a holding is too long. As the data is inconclusive (at this point), I will keep doing this.

[humvee]

Opposite to your other portfolio then. So from our very limited sample, the only way to increase RAR is to invest more!

I assume this smaller one is more conservative (A's and B's) to have a RAR that low?

I have been avoiding 60m loans while there is no secondary market as waiting 5 years to liquidate a holding is too long. As the data is inconclusive (at this point), I will keep doing this.

No It is also c,d,e,f and 50% of the loans in it were also picked by me using the same general methods

Capture23-02-2016a.PNG

I would be very interested for others to post the same figures for their portifolio so we had get a better idea if there is truely a difference between 36m and 60m in rewrites and write offs

[permutation]

I would be very interested for others to post the same figures for their portifolio so we had get a better idea if there is truely a difference between 36m and 60m in rewrites and write offs

My Rar has increased to over 14% in the latest update.

Have had 3 charged off loans E,F grades only, out of a total of just under 500 loans in the last 11 months. Rewrites currently are about 25% of the total loans I have invested, and of those loans repaid ~85% were for a 36 month term.
Attachment 7903

[nztyke]

You therefore pay your individual PIR tax on this 11.59% return?

How much time per week does it take you to monitor?


How easy is it to re-invest your interest and principal repayments into new loans? Or does your cash sit not earning in ebetween loans?

Why are you investing here as opposed to the sharemarket which averages 10-11%?

Buffett

1. I probably spend on average half an hour a day on it

2.Because I check my account every day surplus cash gets reinvested almost immediately.

3. Its called diversification, Harmoney only represents about 4% of my portfolio, the balance being in stocks, bonds, property and cash. I must admit though that at the moment it is the most fun investment.

[nztyke]

Hi

Thanks for the info you have a lower risk/return profile in your portfolio then me.

What I would be interested to know was what % of the interest you earned did you pay in fees?

Humvee
Sorry I meant to include that figure: it was 8.7%

[nztyke]

Unfortunately the borrower details available to investors seem scant, so much reliance must be placed on Harmoney's assessment.

When I was in business we had 2000+ customers and I relied on our credit manager and his team to assess the risks (Early in the piece I made some decisions and I was too often taken in by a plausible sob story). I look on Harmoney the same way: credit management is their area of expertise, not mine.

[nztyke]

[QUOTE=

I have been avoiding 60m loans while there is no secondary market as waiting 5 years to liquidate a holding is too long. As the data is inconclusive (at this point), I will keep doing this.[/QUOTE]

i agree, when when one gets to a certain age one doesn't want to leave one's executors with assets that are going to take five years to realise; 3 years is bad enough. I for one would greatly appreciate a secondary market facility.

[permutation]

When I was in business we had 2000+ customers and I relied on our credit manager and his team to assess the risks (Early in the piece I made some decisions and I was too often taken in by a plausible sob story). I look on Harmoney the same way: credit management is their area of expertise, not mine.

So you never assess any of the loan bios to give you an impression of the borrower especially the repayment v income ratio.
How do you feel about a loan when a borrower's monthly repayment is say 20-25% of their monthly (after tax) income as posted on the website?

[Cool Bear]

It looks like you might be right

I just ran some numbers

Out of my total loans 1603 loans in total
59% are 60 Months 71% 1141
41% are 36 months 29% 463


27.78% Of my write offs are 60 months 6 loans
72.22% Of my write offs are 36 months 4 loans


51.82% of my paid off loans are 60 months 63.24% 117 loans
48.18% of my paid off loans are 36 months 36.76% 68 loans

How do your numbers compare?

Hi Humvee, I have been in harmoney about 7 to 8 months and have 1603 loans. My figures are next to yours above in green for easy comparison. What is the total number of loans you have in the above?

It does looks like the 60 months are better in terms of less paid off (10.25% vs 14.69%) and less write off (0.526% compared to 0.863%). Maybe I should change my criteria to favour 60 months. But need to analyse more when I have the time as all 10 of the writeoffs are from the first two months I invested so may have to base the writeoff figures on just those 2 months.