Harmoney

[joker]

hit the $20k gross interest mark

initially (harmoney 1.0) I thought E's where the best ROI.... turns out they default a lot.

Attachment 9542

Hi Alistar and thanks for posting. I'm amazed that your charge-offs vs interest = 22% ($4.5K vs $20K) and yet your RAR is still so good. I assume many of your original loans were at 30%+ interest rates and that current charge-offs have dropped significantly now.

Mine are 4.79% ($149 vs $3,110) RAR 12.69% but I've only been invested for 7 months so more no doubt to come.

I would be interested to read other investors' charge-off vs interest vs RAR stats for comparison.

TIA all.

[BJ1]

Attachment 9544

Just for additional info Joker, my average loan is $600 and I've had two write-offs over 3 years

[alistar_mid]

Attachment 9544

Just for additional info Joker, my average loan is $600 and I've had two write-offs over 3 years

Nice.

So because you put more into each loan I assume you read the descriptions and stuff?

Also admiring your RAR with your mix, any reason for the 50/50 of 36/60 months?

[BJ1]

Apart from about 4 autolend all of my loans are carefully chosen. I don't do anything with a funny "smell" to it. I started off with 60 mth loans in A and B and 36 mth for C D E but in the past year have allowed "better" C to go to 60 mth but overall concentrated on reducing term as markets moved more and more to being over extended - when the inevitable crash comes I want to have options and also I want my borrowers to be able to extend their payment plans (and thus clear me if they do refinance).

[joker]

Attachment 9544

Just for additional info Joker, my average loan is $600 and I've had two write-offs over 3 years

Thanks BJ1. I envy your obvious skill in picking sound loans - I could never pick/reason which loans are worthy of $600. Your low level of charge-offs is nothing short of amazing. My loans are 50/50 autolend/picking and are almost exclusively $25 units. I also like your reasoning with 36 month loans.
Attachment 9551

[alistar_mid]

Hi Alistar and thanks for posting. I'm amazed that your charge-offs vs interest = 22% ($4.5K vs $20K) and yet your RAR is still so good. I assume many of your original loans were at 30%+ interest rates and that current charge-offs have dropped significantly now.

Mine are 4.79% ($149 vs $3,110) RAR 12.69% but I've only been invested for 7 months so more no doubt to come.

I would be interested to read other investors' charge-off vs interest vs RAR stats for comparison.

TIA all.

Yeah in harmoney 1.0, off their stats, I worked out (along with some others on this forum) that E's where apparently the sweet spot in ROI.

But come 1+ year in when you can see how defaults actually pan out its been a bit different.

E's are 46% of my write offs, but have only been 11% of my loans...

[Cool Bear]

Hi Alistar and thanks for posting. I'm amazed that your charge-offs vs interest = 22% ($4.5K vs $20K) and yet your RAR is still so good. I assume many of your original loans were at 30%+ interest rates and that current charge-offs have dropped significantly now.

Mine are 4.79% ($149 vs $3,110) RAR 12.69% but I've only been invested for 7 months so more no doubt to come.

I would be interested to read other investors' charge-off vs interest vs RAR stats for comparison.

TIA all.

The average for HM atm is $22,880,104/$99,747,404 (market stats at 1.26pm 9 March) = 22.94%. So Alistar's 22.23% is still below average.
Mine after 33 months (5000++ loans) is 21.32%. My RAR is just above 14% atm, so I am still happy.

[Cool Bear]

And with Joker's 4.79% and BJ1's 2.27%, there must be quite a few with well over 50% for the average to be 22.94%!! But of course the real objective is the net returns - which RAR is a (not so accurate but still a) decent measure.

[myles]

Charge offs: 0.82% (on number of loans)
Avg weighted Interest: 20.08%
RAR: 16.32%