Harmoney

[whitt]

Scorecard 1.5 and defaults:

Looking at the actual platform stats i have quickly looked at each grade
https://www.harmoney.co.nz/investors...148.1475453833

then i have worked out charge offs vs total issued and got the following data as the fairly represent actual figures.

EG
A Grade from stats link above
chargeoff $621,621
Total Issued $120,703,450
621621/120703450=0.51%

A=0.51%
B=0.73%
C=2.15%
D=4.9%
E=9.2%
F=15.4%

These actual platform stats differ from the estimated default rates on website
https://www.harmoney.co.nz/investors/investment-risks

It should also be noted that the new scorecard 1.5 F grades only have a upper estimated default rate of 9.50%.

In summary to me it appears Harmoney used actual stats to refine new scorecard 1.5 grades. This has given us a heap of new grades at lower end and looks like they are going to ditch the higher risk borrowers at other end.

Hopefully they reset the marketplace stats also as the new scorecard will unfairly manipulate the stats data as the old vs new grades are not compatible. A new grade C1 is effectively comparable to an old grade B2.