Harmoney

[myles]

The method I am using to value Payment protect, is earning out the "unearned principal" over the life of the loan

But that principle earns interest, so you can't simply remove it.

accrued income is more of a technicality - but extremely important for anyone with a portfolio less then half a year old

I don't agree, but that's my take. There is so much going on in the early phase that pretty much any numbers will be of little value - better to wait for things to mature a little. An example is your example of 50% over return on an individual PP loan over, I assume, a very short period - completely pointless to consider this in this way. It's like fully valuing in a upfront fee at the start of a loan instead of across the whole period of the loan which it actually applies to.

Removing Withholding tax enables a comparison against RAR.. And just better form in general, as everyone has different withholding tax rates.

No it doesn't, they are completely different things. There is no point comparing RAR with XIRR, sorry, I think you are wrong here.

**** Be aware though - In the spreadsheet I've included formula for withdrawals, and defaults ... I've never had either, so don't know how harmoney output this data on the extract

Not going near your spreadsheet - far too messy with no descriptive detail for me...

[beacon]

Not going near your spreadsheet - far too messy with no descriptive detail for me...

Bugger, but he's been there to know that...

[leesal]

Bugger, but he's been there to know that...

lol, took that as a given!

[beacon]

lol, took that as a given!

I glanced at your spreadsheet, and although I'll not use it personally, i think you are pretty clever to have designed that...

I agree with myles though, that there is not much point comparing HM RAR with XIRR, mostly because HM RAR is no more than a feel good number at best (at least for me) ...

[leesal]

I glanced at your spreadsheet, and although I'll not use it personally, i think you are pretty clever to have designed that...

I agree with myles though, that there is not much point comparing HM RAR with XIRR, mostly because HM RAR is no more than a feel good number at best (at least for me) ...

Thanks Beacon