Harmoney

[AndrewD]

Yes, I wonder if there is any investor here who had been in for more than 24 months and with a RAR of 15+%

I stuck a toe in in February 2015, laughably tentatively, waiting until that November before deciding their platform worked well enough to start growing it a bit. Actually the platform was a bit rough back then, with some very peculiar discrepancies in the dashboard, but they always sorted themselves out eventually and I looked at the few cents of fees they were getting from me, and didn't complain.

Even now my pile is a fifth of what some of you chap(ette)s have on the table so perhaps I do not qualify as someone who has been in it, really, for 24 months. I had so few loans back then that my RAR graph is a seismograph, good only for laughs. With the increasing number of loans it has stabilised, and since March this year (when either I grew a brain, or the Christmas defaults slowed, or both), is has been rising steadily, now around 15.5%.

I attribute the improvement to bonehead investing decisions that kept it low earlier on. Pretty confident about that. Less confident about attributing the decent RAR nowadays: maybe to being really picky.

Is 15% that good, though? There are plenty of investors on the RAR by loan count chart over 15%. As far as I can see: I can't find the high-res version of that atm.

[myles]

]or the Christmas defaults slowed

Timely reminder, for those that believe - from October through to January would be a good time to be more 'picky' on loans to lower the likely default rate post Christmas.

15% is good long term - average retail is running at 13.2%, so that means there are a lot doing much worse.

[Cool Bear]

I stuck a toe in in February 2015, laughably tentatively, waiting until that November before deciding their platform worked well enough to start growing it a bit. Actually the platform was a bit rough back then, with some very peculiar discrepancies in the dashboard, but they always sorted themselves out eventually and I looked at the few cents of fees they were getting from me, and didn't complain.

Even now my pile is a fifth of what some of you chap(ette)s have on the table so perhaps I do not qualify as someone who has been in it, really, for 24 months. I had so few loans back then that my RAR graph is a seismograph, good only for laughs. With the increasing number of loans it has stabilised, and since March this year (when either I grew a brain, or the Christmas defaults slowed, or both), is has been rising steadily, now around 15.5%.

I attribute the improvement to bonehead investing decisions that kept it low earlier on. Pretty confident about that. Less confident about attributing the decent RAR nowadays: maybe to being really picky.

Is 15% that good, though? There are plenty of investors on the RAR by loan count chart over 15%. As far as I can see: I can't find the high-res version of that atm.

Yes, despite all the shortcomings of the RAR, anyone with over 15% RAR after 24 months is doing very well indeed!! Will beat a lot of other investments too including many in the share and housing markets.

[leesal]

Yes, despite all the shortcomings of the RAR, anyone with over 15% RAR after 24 months is doing very well indeed!! Will beat a lot of other investments too including many in the share and housing markets.

You early adopters got in at the right time!

I missed the party, and joined just as 1.5 kicked in

15% will be very challenging to achieve.

[Investor]

You early adopters got in at the right time!

I missed the party, and joined just as 1.5 kicked in

15% will be very challenging to achieve.

Yes, based on the latest scorecard an optimal RAR after projected defaults is going to be around 14% (roughly).

[RMJH]

Yes, based on the latest scorecard an optimal RAR after projected defaults is going to be around 14% (roughly).

What is your definition of optimal?

[Investor]

What is your definition of optimal?

Meaning if you could invest all of your capital at the most desirable grade or grade range.

[RMJH]

Meaning if you could invest all of your capital at the most desirable grade or grade range.

So you mean the highest expected achievable return on a portfolio rather than a more complex optimisation considering risk.