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Loan Portfolio Update: February 2019
01/03/2019
Loan Portfolio Update: February 2019
Time flies, and another month has gone by. Here are my portfolio results.

Total Distribution and Profit

(Click to enlarge on smartphone)

Mintos

I’m happy to say that you guys were right: Late loans on Mintos have significantly decreased since the “holiday aftershock”. 20-30% late loans is still not particularly impressive, but that’s what we’re used to seeing.

It’s a shame that only one high-rated originator, Mogo, continues to offer attractive loans. Aasa, Credissimo, Leaselink, BB Finance, Placet and EBV barely offer any loans, and their interest rates are too low to seem relevant.

True, if my bank offered 8% fixed annual profit, I wouldn’t complain. But loan returns are taxed harshly: 8% will leave me with about 6% net annual gain, minus transfer and currency conversion fees.

So these loans are out of the question, and distributing my portfolio among dozens of medium/high risk originators is becoming stressful, especially when loans are constantly repurchased early, forcing me to redistribute each day.

All that aside, actual returns are too good to complain.

Other Platforms

CrowdEstate continues to offer new projects (sadly, some of which are recycled old loans) at an impressive pace, with interest rates ranging from decent to excellent. Till now I was a bit bummed about not receiving monthly payments from some projects, but this month one of them exited early and pushed my earnings through the roof. It’s a pleasure to see your investments materialise into buildings and businesses, creating real-world value 🙂

Envestio was my second-highest performer, but I’m genuinely starting to worry about their recycled loans and lack of new customers. I also missed 2 opportunities which were funded too quickly, which highlights the lack of auto-invest function.

Fast Invest performed extremely well, but interest rates for new loans have lowered (to the same level as other platforms: max 12-13%). More significantly: Their continued disregard for their transparency issue is disconcerting. They better show a serious change in attitude in the next few months, or I’m out.

Grupeer, which I joined last month, has started generating profit. I really like some of their loans, and will deposit more this month.

Finally, I joined Lenndy, and my first impressions are good. In response to my mini-review, their nice CMO Arturas Stukalo explained that they actually prefer a small platform with high-quality loans over the opposite. While I appreciate this approach, I still wish to see Lenndy expand and offer more loans from larger originators.

Bottom Line

Most platforms provided higher returns than the average interest of my loans, perhaps because February is the shortest month, so an identical monthly payment translated into higher annualised return. But the overall profit was also significantly higher than last month‘s, so I’m happy. How long will this party last??

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