P2P Lending

ct5amr2ig1nfhp

I waited to see if Mogo repurchased anymore of the 16% loans before I purchased a few on the secondary market recently.

I am raging now. Mogo have repurchased all the loans I bought at a premium. What a load of b****x!! Seems very unfair and I am going to stay away from the SM.

Reviewing loans rates this morning and it looks like a 1-2% drop in rates across loan originators on the Primary Market.

ct5amr2ig1nfhp

Mintos update on Aforti, another meeting today and...

"We aim to release the next more detailed update tomorrow"

vargoo

Clara Sparse Windbreak wrote: »

I waited to see if Mogo repurchased anymore of the 16% loans before I purchased a few on the secondary market recently.

I am raging now. Mogo have repurchased all the loans I bought at a premium. What a load of b****x!! Seems very unfair and I am going to stay away from the SM.

Reviewing loans rates this morning and it looks like a 1-2% drop in rates across loan originators on the Primary Market.

Fitch Rates Mogo Finance 'B-'; Outlook Stable

They've started lending out more than the cars are worth now.

Couple of years time if borrower can't pay, the asset ain't gonna come close.

How long were the 16% loans for?

Shelflife

Aforti Finance will resume passing borrower payments to investors on Mintos starting from today. Automatic repayments and buybacks for loans originated by Aforti Finance were earlier suspended on August 7th. From today we will process the payments and credit investors’ accounts as soon as Aforti Finance makes daily transfers to us in full.

Disruptions to transferring borrower payments from Aforti to Mintos arose amidst technical issues with the reconciliation of outstanding balances and discrepancies in the buyback status between Aforti and Mintos IT systems. This resulted in cash flow mismatches and irregularities in Aforti transferring borrower repayments to investors on Mintos marketplace.

To protect investors, the suspension of trading Aforti Finance loans on the Secondary Market will continue until further notice.

We thank our investors for their patience as we worked through this situation.

Considering the previous and this week's developments with Aforti Finance, we combined our last announcements to share a recap of the situation.

Nine months ago, in December 2018, we started to notice a weakening performance of loans originated by Aforti Finance. At the same time, due to technical glitch loans that were current according to Aforti Finance IT system were reported to be late and subsequently went into buyback status on the Mintos side. That created a mismatch in cash flows from borrowers that Aforti Finance received and cash flows they had to pass to investors. In January 2019, after discussions with Aforti Finance, we proceeded with a mutual agreement that Aforti Finance will not be placing new loans on the Primary Market to avoid further discrepancies. Aforti Finance continued to service loans that were funded on the Mintos marketplace. Also, investors could sell and buy loans originated by Aforti Finance on the Secondary Market on Mintos.

In light of issues described above and adverse changes in the mood of the Polish securitization and bond market, we reflected our view by downgrading Aforti Finance to C+ in March 2019. During this time Aforti continued to service the loans and investors received the payments that were due to them. Accordingly, the total outstanding portfolio of loans originated by Aforti Finance and funded on the Mintos marketplace decreased from EUR 5.7 million on December 31, 2018, to EUR 2.2 million as of August 12, 2019.

Last week, due to the growing mismatch in cash flows that Aforti Finance received from borrowers and that they have to pass to investors, we experienced disruptions with Aforti Finance passing payments to investors on the Mintos marketplace. As a result, we decided to suspend automatic repayments and buybacks. We also suspended trading of Aforti Finance loans on the Secondary Market to protect investors while we clear the situation. We set up an immediate meeting with Aforti Finance in Warsaw, Poland to assess the cause of the delays and most importantly - to understand next steps. Aforti Finance has now addressed the discrepancies in the loan statuses in their IT system and on Mintos, and has committed to resume payments to investors.

Mintos team closely followed comments and questions raised to our Investor Service team and posted on our blog and social media. It took time while we have gathered all facts, double checked them and confirmed with Aforti Finance, a subsidiary of publicly listed Aforti Holdings, before taking any decisions or actions and communicating them to investors. We remain committed to timely communication and transparency with our investors.

Please feel free to reach out to our Investor Service team in case you have any questions. We are always happy to help.

vargoo

^^ Mintos knew alot months ago, didn't say.

What reason did they give for the C+ rating downgrade back at the time in march...must check outta curiosity.

vargoo

vargoo wrote: »

^^ Mintos knew alot months ago, didn't say.

What reason did they give for the C+ rating downgrade back at the time in march...must check outta curiosity.

Our decision was mainly driven by the adverse changes in the mood on the Polish securitization and bond market which makes it difficult for many companies to refinance their debts. Our decision was also influenced by insights into changes in the company’s internal arrangements.

https://blog.mintos.com/its-official-the-first-mintos-rating-update/

ct5amr2ig1nfhp

An incredible amount of LO repurchases going on in my portfolio in Mintos. "early repayment of a loan: principal received" In the last week or so, I am seeing 10-15% of my funds sitting idle due to early repayments or loan agreements extended.

As mentioned already, rates have dropped significantly.

Shelflife

Iute have signalled that they would be doing this after getting a decent bond offer over the line. So you have an early buy back and a decent sized originator either not lending or have reduced their rates.

Its probably one of the biggest threats to the current model of P2P lending. as the originators get bigger they can get cheaper money elsewhere thus cutting us out.

mike_cork

Shelflife wrote: »

Iute have signalled that they would be doing this after getting a decent bond offer over the line. So you have an early buy back and a decent sized originator either not lending or have reduced their rates.

Its probably one of the biggest threats to the current model of P2P lending. as the originators get bigger they can get cheaper money elsewhere thus cutting us out.

Or launching their own P2P market place so as to cut out the middlemen like Mintos e.g. Peerberry

ct5amr2ig1nfhp

A quick Bondster update. I am approx 3.5 months invested with Bondster. Here are May, Jun, Jul approx figures on 500 EUR invested. I am invested in only short term 13% loans.

MAY | 1.76 | 1.62 interest, 0.14 penalties
JUN | 2.73 | 2.57 interest, 0.16 penalties
JUL | 9.00 | 4.25 interest, 4.75 penalties

Total for the three months: 13.49
Estimated return for the year ~ 55 EUR or ~ 11%

mike_cork

Clara Sparse Windbreak wrote: »

A quick Bondster update. I am approx 3.5 months invested with Bondster. Here are May, Jun, Jul approx figures on 500 EUR invested. I am invested in only short term 13% loans.

MAY | 1.76 | 1.62 interest, 0.14 penalties
JUN | 2.73 | 2.57 interest, 0.16 penalties
JUL | 9.00 | 4.25 interest, 4.75 penalties

Total for the three months: 13.49
Estimated return for the year ~ 55 EUR or ~ 11%

V poor.
I've started pulling out of Viventor and bondster due to the poor returns (and in Viventors case 52% of my loans are late).

ct5amr2ig1nfhp

I suspect it may be down to how the loans are reported and paid (including interest). Both Bondster and Viventor receive delayed payments interest, so funds should technically earning a return whether current or delayed. I do not see any mention of "grace period" on either platform.

Viventor returns based on my own calculations:

MAY | 10%
JUN | 7%
JUL | 8.5%

XIRR is 12.9% according to my overview page. I will reach out to Viventor for comment.

mike_cork

Clara Sparse Windbreak wrote: »

I suspect it may be down to how the loans are reported and paid (including interest). Both Bondster and Viventor receive delayed payments interest, so funds should technically earning a return whether current or delayed. I do not see any mention of "grace period" on either platform.

Viventor returns based on my own calculations:

MAY | 10%
JUN | 7%
JUL | 8.5%

XIRR is 12.9% according to my overview page. I will reach out to Viventor for comment.

Let us know what they come back with

ct5amr2ig1nfhp

Some Brexit discussion.
There are currently three UK LO's on Mintos, 1PM (A) Novaloans/Cash4UNow (B+) and Peachy (B). 1PM have loans in GBP, while the other two have loans in EUR. Only Peachy appear to have loans available on the Primary Market.

I removed UK LO's from my portfolio some time ago. Have others done the same?

Lazy Bhoy

Clara Sparse Windbreak wrote: »

Some Brexit discussion.
There are currently three UK LO's on Mintos, 1PM (A) Novaloans/Cash4UNow (B+) and Peachy (B). 1PM have loans in GBP, while the other two have loans in EUR. Only Peachy appear to have loans available on the Primary Market.

I removed UK LO's from my portfolio some time ago. Have others done the same?

Yes, I have just recently started to do the same. All of the UK loans that I have now are from Peachy and I have currently reduced the amount down to around 4.5%


I have not started to sell them on the secondary market but I have just stopped taking up any new ones for the moment. I will let them run down but wont take on any more from the UK until I see how Brexit pans out.

vargoo

mike_cork wrote: »

V poor.
I've started pulling out of Viventor and bondster due to the poor returns (and because in Viventors case 52% of my loans are late).

Poor? Really?

vargoo

Clara Sparse Windbreak wrote: »

Some Brexit discussion.
There are currently three UK LO's on Mintos, 1PM (A) Novaloans/Cash4UNow (B+) and Peachy (B). 1PM have loans in GBP, while the other two have loans in EUR. Only Peachy appear to have loans available on the Primary Market.

I removed UK LO's from my portfolio some time ago. Have others done the same?

Peachy is a dog of a company.

Nova - I might not go for a 12 month loan but otherwise I don't pass any remarks on Brexit, nothing gonna happen overnight.

mike_cork

vargoo wrote: »

Poor? Really?

Yes- in comparsion to the returns I have received on other platforms

ct5amr2ig1nfhp

Now a 4% drop in rates in some LO's like Dinero. There are currently little or no loans above 12% on the Primary Market.

retalivity

Mintos auto-invest seems to have completely stopped altogether. Ive had nothing reinvest automatically since last week

sKeith

retalivity wrote: »

Mintos auto-invest seems to have completely stopped altogether. Ive had nothing reinvest automatically since last week

Would the drop in return rates cause none of the current loads to fall within your auto invest criteria?


12% loans seems the max short term now.

bohsman

Invest and access average rate down to 11.66% too from a high of 12.37%.

Lazy Bhoy

bohsman wrote: »

Invest and access average rate down to 11.66% too from a high of 12.37%.

When I look at Invest and Access it shows 10.11% as the average rate now.


It must be falling fast.

retalivity

sKeith wrote: »

Would the drop in return rates cause none of the current loads to fall within your auto invest criteria?


12% loans seems the max short term now.

Nah my min criteria for the 2 auto invest strategies are 7% and 10.5%

I went and manually invested in loans that met the criteria last night, after i saw the cash pile was backing up

bohsman

Lazy Bhoy wrote: »

When I look at Invest and Access it shows 10.11% as the average rate now.


It must be falling fast.

To clarify that's my Invest and Access % but yes, definitely falling fast. I only started using it as it was a couple of % higher than the auto invest settings I had set up myself before that.

ct5amr2ig1nfhp

I had to drop my AI portfolio rates again this morning. So much for passive investment. The likes of DoFinance etc with 11% locked in for 6 months up to 60 months and no early repurchases is looking more attractive. They have a 'VIP' program 12% for a min 12 months is also available. I believe it was mentioned already how you join the VIP program. If you see the 12% option in your account, you're in the VIP program.

I had forgotten you can also withdraw your investment from DoFinance before the due date. more here in their FAQ. It's dependant on what portfolio rate you have invested in.

DoFinance financials available here. Has anyone purchased them?

Edit: Results (or summary of results) to be published to investors in Sep, hopefully the first week of Sep.

scheister

11.5% is lowest I see at the moment for buyback loans in € under 3 months

vargoo

Fast Invest - First time I've ever seen them with no loans available.
Robo - None available
Envestio - None

Shelflife

Fast Invest - cant say I've noticed as I'm pulling out of that until they provide more transparency.

Robocash - I'm pretty much fully invested in that, havent noticed any lag.

Envestio- pretty standard for them, nothing for ages , then two or three together then nothing again.

ct5amr2ig1nfhp

Agree with you both. Envestio have said they are in the final stages of something new by end of Jul. It's now end of Aug...#
I'll fire them a message to get an update.

Robo... that "available loan" section never really worked. The filters do not work and are all set to 0. I am fully invested though.

Fast Invest, I've seen this before with them. No/few EUR loans. I've messaged them. Edit: They are aware of the problem, say it is due to investor demand and are working on adding more loans.

Mintos rates... all I can say is arghhh!!! Very frustrating.