Portfolio update June 2017

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Summary of June

June was the first full month with Swaper. I’m pleased to say it has been a hassle free experience. The Auto Invest reinvested everything daily, no manual action was required.

Twino on the other hand needs 100% manual investing at the moment if you’re going for the 12% loans. And even with the manual work you still have to know exactly when the loans are released to get any. If things doesn’t change over the next month I will probably start transferring the funds to Swaper instead. Less work and higher returns.

Bondora returned 225,80€, (-0,61€ less than last month)

Twino returned 120,08€,  (+1,07€ more than last month)

Swaper returned 31,65, (+28,25€ more than last month)

Mintos returned 12,09€, (-0,42€ less than last month)

This gives me a total of 389,62€ (+27,57€ more than last month)
That equals 12,99% of my first goal (+0,92% more than last month)

Where will my spare money go in July?

This month I have more expenses than usual due to vacation and car maintenance but I will probably be able to find another ~1000€ to invest somewhere. Crowdestate recently presented a new investment opportunity but the return is in the lower range of 11% and I was really hoping for more. Maybe it’s time to try Viainvest?

Enjoy the summer!

This months blog post is written from the beautiful Marché area in Italy where we enjoy our summer holiday. I love the view from the balcony!

5 Replies to “Portfolio update June 2017”

  1. Holy crap, you have so much invested in Bondora… Don’t invest anymore, you might as well just use paper money and burn it for heating.

    Those 18k or so in defaults you have? They are gone, lost, you won’t get them back. Recovery process for Bondora loans are terrible. Just google it up.

  2. Thank you for your concern, I appreciate all kinds of input.

    I did a lot of research on Bondora before investing. Bondora is a long term investment, it can take up to 7 years for a defaulted loan to recover or to be written off.

    I learned these 3 steps from the stock market that I’m also applying in P2P investments:
    1. Make a plan with a specific time horizon.
    2. Stick to the plan, don’t panic.
    3. Adjust accordingly

    I made a plan that I would continue reinvesting for at least 3 years, and if interest doesn’t start to go up after that, I will change strategy.

    My portfolio looks a lot like Bondora’s total portfolio. I have a bit more in default, but I invested into higher ratings and also bought some defaulted loans at 90% discount or more, which explains the higher number. Some of those defaults have already been paid back in full including interest. Some defaults make regular repayments every month but due to the structure, they will stay in default until the entire principal amount is paid back.

    I agree that my portfolio doesn’t look too promising but I’m sticking to the 3 year plan. If you haven’t subscribed already, make sure to do so if you wan’t to see how it goes 🙂

  3. Hi Jørgen, did you check Bondora public reports including Loan Dataset? I would be really cautious looking at huge proportion of defaulted loans you own. If you check that dataset you can easily find out simple facts that eg 50% of loans which defaulted in 2014 recovered less than 100Euro till 2017 etc. So even if I understand your idea to stick with some strategy I think it’s too optimistic. I’d suggest to start to manage the portfolio (=selling loans coming close to default at secondary market with discount) because you’ll very probably end with very poor results even when you wait for years. Moreover reinvesting the money you get from selling bad loans into platforms better suited for passive investors can bring you the same or better results than waiting for years and hoping the recovery process will bring the money back…

  4. Well Defaulted loans don’t have to be bad at all, especially if you can buy them at -90%. The problem at the moment is that Bondora is not recovering almost any of the loans.
    My own portfolio currently consist only out of defaulted loans at the moment (sold all the green ones with premium), but for the last few months none of the loans are recovering.

    I am wondering how your recovering is going. Maybe in the next month update you can show us some of your statistics on the recovering of defaulted loans in 2017.

  5. Michal: Recovery from defaulted loans is (and always will be) a slow process. But selling them with discount doesn’t make it better in my humble opinion. Why do you think some investors are willing to buy defaulted loans? My guess is, that patience always pays.

    Jelmer: Recovering has been somewhat steady every month. On average 84€ has been recovered pr. month in the first 6 months of 2017. In total, 1.404€ has been recovered since December 2015. Even though Bondora is a big part of my P2P portfolio at the moment, I don’t want to give it too much attention here on the Blog, there are so many other exciting opportunities to focus on.

    Stay tuned for the next monthly post. I have invested into 2 new platforms and I can’t wait to share the experience!

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