Harmoney

[Cool Bear]

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.

You are right. It is like investing in the stock market. Every one try to beat the index but the index is the sum average of everyone's performance.

Harmoney RAR is that sum average.

I think I have a wonderful set of criteria for choosing loans. But everyone else investing in Harmoney think the same too. So, all our individual RARs will much depends on Harmoney RAR with in turn is largely affected by the interest rate they set and the number of defaults in the end. So, their system of approving of loans and assigning of grades to each borrower (thereby setting the interest rate) is the most important factor in all our performances.

So, those investors that have just a few hundred loans may have RARs that are much greater or lower, but if you have 1000's of loans, it will be hard to be very different from that mean.

[Cool Bear]

You are right. It is like investing in the stock market. Every one try to beat the index but the index is the sum average of everyone's performance.

Harmoney RAR is that sum average.

I think I have a wonderful set of criteria for choosing loans. But everyone else investing in Harmoney think the same too. So, all our individual RARs will much depends on Harmoney RAR with in turn is largely affected by the interest rate they set and the number of defaults in the end. So, their system of approving of loans and assigning of grades to each borrower (thereby setting the interest rate) is the most important factor in all our performances.

So, those investors that have just a few hundred loans may have RARs that are much greater or lower, but if you have 1000's of loans, it will be hard to be very different from that mean.

And it does seem that everyone with more than 1600 loans perform slightly better than the platform RAR, even if the difference is not that much.

[Harvey Specter]

And it does seem that everyone with more than 1600 loans perform slightly better than the platform RAR, even if the difference is not that much.

The platform RAR is lower than the retail rar so it actually looks about right.

I guess mypoint is there doesn't appear to be a divergence between a low risk and high risk strategy. YOu could say this means Harmoney has got their ratings right but we will only see this once we hav gone through a whole business cycle. If the high risk ones are only performing as well as the low risk ones now, accounting for write offs, then what will happen in a recession? will the modeling still work or will the Es and Fs be impacted proportionately more. I would expect high risk to pay of in good times (now) but perform worse during bad times. That doesn't seem to be he case so I will probably start evening up my loan profile.

[Cool Bear]

The platform RAR is lower than the retail rar so it actually looks about right.

I guess mypoint is there doesn't appear to be a divergence between a low risk and high risk strategy. YOu could say this means Harmoney has got their ratings right but we will only see this once we hav gone through a whole business cycle. If the high risk ones are only performing as well as the low risk ones now, accounting for write offs, then what will happen in a recession? will the modeling still work or will the Es and Fs be impacted proportionately more. I would expect high risk to pay of in good times (now) but perform worse during bad times. That doesn't seem to be he case so I will probably start evening up my loan profile.

I think so too that EF will be hit more in bad times and perform better in good compared to AB

Almost 90% of my defaults are in E and F but in terms of returns they are still better than my loans in A and B. I guess that much as we know that high rewards comes with high risks, we are still bothered emotionally with defaults.

[IntheRearWithTheGear]

Has anybody done any rough calcuations on loan values at end of term for unit of $25.

I get this (but i might be wrong)

A1 60 months full survival is worth $5.28 after 17.5 tax and fees etc

GrossInterest 6.8929502163808039
PlatformFee 0.39866187770476019
RwtTax 1.2062662878666413


f5 60 months is $27.12
Gross Interest 33.76745875
PlateFormFee 0.734593234
RwtTax 5.909305281

[humvee]

How has someone made a -140% return?

RAR-by-days-April-Update.jpg

[Cool Bear]

How has someone made a -140% return?

RAR-by-days-April-Update.jpg

Wow, my first thought is how can you lose more than 100%. Then looking at the graph, he is only in for about 245 days. So must have lost over 90% of his money and when that is annualised, becomes 140%.

[permutation]

Has anyone noticed that the platform Rars were last updated 19 March. Wonder what the April Rars are?

[tim23]

Anyone think they will seek NZX listing, HNZ & TME hold stakes might be looking to see down at some stage?

[Knot]

It would appear they forgot to renew their website ssl cert. Not a good look for an Internet based Company, or there is a man in the middle attack going on.

Screenshot_2016-04-26-00-54-24.jpg