Studies of Life

Learning by doing.

Category Archives for: p2p lending

The Risks in European P2P Investing: From 20% to 10% and then 5%

18 November 2016 by Jim

(Image by InvestmentZen – www.investmentzen.com)

I am an investor in P2P loans in Europe. I started out with Bondora in 2014, and after burning my fingers there, I moved on to seemingly safer alternatives, including Twino, Mintos, ABLRate, SavingsStream, FellowFinance, etc. Many people scared by what happened at Bondora will have made the same journey.

What went wrong with Bondora you might ask? Well, misaligned incentives for one thing, and shoddy management decisions for another. The platforms basically promised 20% ROI per year, which was – with hindsight obviously – excessive. They have since revised this figure. Also, they tried to hide data by changing the way that statistics are displayed on the site constantly. None of that builds trust.1 (more…)

How to Bulk Remove Your Loans from the Bondora Secondary Market

13 January 2016 by Jim

If you’re currently selling loans, for whatever reason, you can try using a specific discount / markup, and then try again with another one if it doesn’t work. Most loans on the Secondary Market sell, if at all, during the first week. So it’s no use waiting for a month.

I have quite a large portfolio of loans, most of which are HR 60+ days overdue (… don’t ask…) so I’m trying to get rid of them at VERY STEEP discounts. I had to increase them several times, and always waited for the 30 days until they were taken off the Secondary Market, to try selling again. (more…)

Bondora Payment Reliability: 82% / ROI = 19.5%

21 November 2014 by Jim

Bondora Repayment ReliabilityI’ve started investing on Bondora in May 2013. Since then, 17 months have passed, and here’s a chart with the percentages of principal and interest that are actually paid back. As you can see, the long-term trend is toward a decrease, which was to be expected as the portfolio matures, but there are no huge decreases, so the trend is not alarming.

The overall percentage repayment probability is on average 82%, split up into:

  • 95% for principal
  • 68% for interest

Principal is paid back more reliably because when borrowers send their payments, they are first used to pay back the principal, and only what is left over after that is applied to the due interest. (more…)