Harmoney

[Cool Bear]

Talk about revision to the mean. My RAR is now 13.1% (down from 13.6%ish ?)which is just 0.05% above the retail RAR.

On a positive note, 13+% is still a decent return.

[Harvey Specter]

On a positive note, 13+% is still a decent return.

Yip. More than three times the bank.

But if the mean rar decreases, then does that mean my returns will too.

[WingingIt]

Had my RAR drop in the last month from over 15% to 13.03% across 73 loans. Two charged off loans both of which made no payments

[WingingIt]

Is anyone else sick of the almost lender blaming tone Harmoney has been using whenever they're trying to defend themselves in regard to charged off and defaulted loans? I'm constantly seeing on here 'theyre only x% of y and so on' and then in that stuff article 'were enjoying an "unbelievable" return of 13 per cent, even after all bad loans, including fraudulent ones.' It seems like we need to feel guilty about earning 13%.

[kiwi_on_OE]

Is anyone else sick of the almost lender blaming tone Harmoney has been using whenever they're trying to defend themselves in regard to charged off and defaulted loans? I'm constantly seeing on here 'theyre only x% of y and so on' and then in that stuff article 'were enjoying an "unbelievable" return of 13 per cent, even after all bad loans, including fraudulent ones.' It seems like we need to feel guilty about earning 13%.

I am frustrated with their spin, lack of transparency/openness, desire to shut down/avoid discussion etc. They seem to have adopted "big corporate" practises.

[permutation]

My Rar has increased to 14.15%. Have been investing less recently, have found it a bit boring sifting through the loans. Have had heaps of repayments, so I just peel off the odd hundy for spending money.

Happy with my return, have only had 4 loans charged off from about 500 original loans over 13 months.

Might get a bit more interested when the weather becomes inclement.

[PennyPicker]

But if the mean rar decreases, then does that mean my returns will too.

It's really the other way around isn't it? The mean RAR is derived from all of the lenders, that includes you. So if yours increases or decreases that will be born out in Harmoney's mean RAR. But of course you're only one of many lenders, it's quite possible your RAR will move differently to Harmoneys, both in speed and direction.

[Bjauck]

I see the Harmoney platform RAR increased from 11.66% to 11.83%. Presumably, despite the fraud cases covered by the media and affecting posters on this thread, that means that their charge-off rates are still within their forecast delinquency rates per grade?

[PennyPicker]

My reading is that too much attention is being paid to micro movements in the RAR each month. It will fluctuate based on write-offs and arrears (money lapsed or paid) and that's normal and to be expected. There's more value in identifying your RAR trend over time than looking at is as a number.

We've been provided with a peek behind the loan curtain that the banks have traditionally held. And now we're allowed back here we're whinging about arrears payments, write-offs, re-writes and fraud when these are a normal part of lending money to humans.

The return is very very good compared to many stocks and definitely bank interest rates. But what many people on this thread seem to have forgotten is that the higher the return, the higher the risk. Many here seem to expect high returns without any risk, like this is some sort of gamified savings account with colourful backstories.

[Harvey Specter]

It's really the other way around isn't it? The mean RAR is derived from all of the lenders, that includes you. So if yours increases or decreases that will be born out in Harmoney's mean RAR. But of course you're only one of many lenders, it's quite possible your RAR will move differently to Harmoneys, both in speed and direction.

Is the 3rd and 4th graph - more the 4th really - on this page https://www.harmoney.co.nz/investors...ace-statistics that I am refering too. It seems regardless of strategy (high or low risk) the more loans you have, your return just reverts to the mean. So maybe if you are only investing a little bit, being selective may make a difference but if you are investing 10s of thousands, just take whats there. An auto invest whenever you have more than $25 would be the best option is they provided it.