August

Portfolio Update September 2020

Another month another platfrom I will not invest anymore. Last month I decided to tighten my portfolio and stop investing on 7 platforms. This month I am fed up with Mintos. As long as nothing happens on the funds in recovery, I will not invest in new loans.

PlatformIncomeBalance
DoFinance * 14,75 € 10.764 €
Iuvo* 8,36 € 4021 €
Bondora 100,75 € 11.387 €
Mintos* 176,73 € 17.403 €
Twino 39.43 € 4.543 €
Auxmoney* 2,58€ 363 €
Fellow Finance* 16,9€ 2.361 €
Finbee* 32,58 € 3.183 €
Estateguru* 17,3 € 1.888 €
Lenndy 20,3 € 2.940 €
Swaper 73,98 7.308 €
Peerberry* 40,52 6.865 €
Sum 544,21€ 73.026 €
*Platforms where I not invest in new loans currently.

-20% interest from last month. Mostly due to the “stuck” money on Mintos, IUVO (10k lying around without interest) and the 10k withdrawal on Mintos.

I will mention only platforms where I am actively investing or something mentioning happened.

Mintos

Not much to say about Mintos, I am disappointed and I will stop investing until the issues are resolved. I was able to withdraw 11k from Mintos and my Recovery / Total Invest Ratio looks really bad now. Absolutely nothing has happend to fund in recovery in the last month. There´s a ask Mintos anything session ahead about funds in recovery on 22.10. I´m looking forward to it.

Do Finance:

In September I received 14,75€ interest on Do Finance and around 400€ of loan Repayments. I was able to withdraw 500€ my total invest is now 10.743! Makes me laugh that they still mention their buyback everywhere.

Auxmoney:

Already made a post about my Auxmoney time. Just a few € every month. I will remove Auxmoney from the table next month.

Fellow Finance:

Interest of 16,9€ from Fellow Finance and I was also able to withdraw another batch of 500€.

Twino:

Twino ran smooth throughout the whole Corona Crisis. I got 39.43 € in interested and will deposit more funds this month.

Bondora:

Wrote already a post about the situation on Bondora a week ago. I will remain as investor on the secondary and the G&G. No positive returns on the primary market possible.

Finbee:

Just keeps running despite the crisis. I think a will have to take another look at this maybe I will restart investing. Interest of 32.58 €.

Lenndy:

Lenndy also runs like a clockwork, though many loans are late, but that was also the case before the crisis.

Peerberry:

I mentioned in my month summary from August that I will not invest anymore with loans at 9%. Yet I kept my Auto Invest at 11%+ and all my money got invested. If Peerberry can keep this interest level I will remain.

My takeaways:

It´s interesting how some small and non buyback platforms have gone through the crisis. In the Sepember Volumes the biggest losses are for Mintos and Bondora. While Twino, Swaper, Finbee Peerberry have restored or even increased their volume. Considering the high amount of interest Finbee delivered in the last months, I will rethink my decision to leave.

Have a nice week!

Matt

The box of Bondora

My first loan Bondora was bought in May 2013, back then it was called Isepankur. Interest rates were insanely high in comparison to the German platform I knew, ranging around 20-35%.Auto Invest and G&G did not exist and solid profit was possible. Lucky times!

My first Bondora Investment

I have stopped to invest on the primary market more than 2 Years ago. I do not consider the primary market attractive and the portfolio manager is garbage. From time to time I buy stakes on the secondary market with large discounts, the rest running out loans and G&G.

I doubt that many investor had + profit within the last few years investing in the primary market. I see a lot of Finance Influencers and Bloggers who present their Bondora numbers with monthly losses. Of course there are exceptions,like Oktaeder, who´s blog I can highly recommend if you want to think out of the box.

He even has developed an own Invest API and drives exceptional secondary market strategies.

My Experience:

As already mentioned I was very lucky to join on the right time and those years it was possible to make solid profits.

What is happening since COVID19 ?

As you invest in projects directly and Bondora does not do any buyback guarantees COVID19 has not changed much on the primary market. Of course the risk of loan defaults for the investor has risen and I expect higher interest rates.

The exciting part is Go & Grow: There has always been doubts if Go & Grow is profitable for Bondora in tough markets times. On the German P2P Board a user has even replicated the G&G Portfolio. The board is only in German but I´ll try to summarize. What did he do ? He build a portfolio with the same loan mix as G&G and observed it for almost 2 years. The last months showed that the 6,75% are not sustainable, especially if you consider the liquidity reserve Bondora has to keep.

The second part of the story is the following announcement. Bondora limits the maximum amount which you can transfer to G&G per month to 1000€. Seems as Bondora came to a similar conclusion regarding G&G profitability.

My takeaways:

For the random investor do not touch the primary market or portfolio invest.

If you want to spent time with loan picking, go for the secondary market

If you just want to park your money short time, go for G&G but keep the last paragraph in mind.

Have a great week! Learn from my mistakes 🙂

Matt

Do Finance Update

As you might know Do Finance is my #1 when it comes to troubled platforms. Therefore everything related to it has my attention.

What has happend since my last post ?

Do Finance released two new blog post since my initial report.

Post #1: “As most of investors are requesting small amounts every other day and costs of transactions is very high, we changed the minimum amount from 10 EUR to 30 EUR.”

Does not bother me much, as due to my investment amount, my payouts are larger. What bothers me more is the portfolio overview they released. Of 3,356 Millions in loans, only 683 are current, 80% overdue and most of it 91+. Additionally in Poland is almost every loan 91+ Late

Post #2: Was a general post on the COVID Situation in Indonesia and Poland. Considering the fact that we have already a second COVID wave rolling, it´s news from yesterday…

In a nutshell they ramp up the Indonesia market but no high hopes for Poland. I wonder how short term loan financing is done in Poland currently. At least the online market is completely dead. Are people financing loans in pawn shops ?

My Account:

In September I got 449.46€ ~ 4% of my total assets! Another 25 MONTHS if we continue that pace. 14€ were profit interest, I do not expect to receive any late interest fees.

I tried to make a payout let´s see if that works ;-). Have you paid out anything lately and if yes how long did it take ?

As long as money keeps flowing monthly I will stay optimistic!

Have a nice Weekend!

Matt