Crowd-lending portfolio review for July 2018

Overview of the month

While little happened in the recent months, July was definitively different. Changes at Mintos, where the leading originator Mogo greatly decreased interest rates for new loans and bought back old loans were rather disruptive. Apart from a few loans from GetBucks, it’s currently hard to get more than 11.5% interest rate for secured loans.

On a positive side, it’s been an excellent month for my Envestio portfolio; I’ll probably upgrade my rating for this platform, and decrease Omaraha’s.

 

Website changes

I published a new article regarding the situation we all fear : borrower’s default. Also, the much-needed update to DoFinance‘s review is now online. The only outdated review is Bondora, which is next on my todo list !

Current performance

Omaraha

Omaraha‘s XIRR was stable in July; it’s 19.87%, versus 19.90%. Just like last month, I withdrew a lot of money from this loans portfolio.

 

Bondora

Will Bondora‘s XIRR ever increase again ? Although July was better than June, with more interests and capital paid, and increased recoveries, the XIRR itself is still down from 11.71% to 11.29%. I withdrew some additional funds as they became available.

Grupeer

Once again, Grupeer doesn’t disappoint. XIRR for this portfolio is an excellent 14.96%, up from 14.67%. It actually won’t be able to climb much more, as the most interesting loans on the platform yield a 15% annual interest rate. I increased my portfolio size again, using money withdrawn from Omaraha and Bondora. I’ll probably cap its size to somewhere between 20% and 30% of my portfolio, which will take some time anyway.

Mintos

July was a complicated month at  Mintos, with the offered rates down a lot. I withdrew a little bit in order to toy with two new platforms, but I don’t plan to further decrease its size; I actually may restore it to its previous size. XIRR was slightly up, at 12.93% versus 12.86% last month.

Swaper

In spite of a small cash drag, my XIRR at Swaper is stable, XIRR at 12.24%, nearly identical to last month’s 12.19%

Robo.cash

Robocash‘s XIRR basically didn’t move, from 12.96% last month to 12.97% in July. For those who missed the post on our Facebook page, there’s a new issuer providing longer-term loans (up to one year), with interest rates of 14.5%. You’ll have to change your auto-invest settings to invest in those loans. A secondary  market was also introduced in order to accomodate this longer duration. Note that for this issuer’s loans, the interest will be paid in full at the end of the loan’s duration.

 

DoFinance

DoFinance‘s XIRR is slightly down, at 12.20% versus 12.30% last month. I finally updated my review in order to match their current offer, which unfortunately provides decreased returns for new investors.

Investly

How low will it go ? My Investly‘s portfolio XIRR is currently 8.15%, versus 8.58% last month. I cut my portolio in two as it’s pointless to invest there for now

Crowdestor

Last month’s XIRR for Crowdestor was an excellent 14.68%. This month it’s down to 13.7%; the reason for this decrease is that one very speculative project was exited, and my new investment will only pay interests in August.

Envestio

My Envestio portfolio is also very recent, but I can now publish my XIRR as projects pay interests monthly. It reached a promising 14.76%, which should actually increase as more interests start kicking in. I appreciate this platform more and more, and will grow my portfolio there aggressively in the coming months !

 

Other companies

I’m still unable to produce realistic returns for CrowdEstate and BulkEstate; I’ll probably be able to compute them in October, once several projects are completed.

Aggregate portfolio XIRR

This value is the average of the XIRR for each company, weighted by its amount. It’s down from 16.59% to 16.37%.

 

XIRR evolution

Remember that values until October (included) were provided by the platform or crudely estimated; from November onwards they were computed using the method outlined in this article.

As usual, Omaraha is the leader; Grupeer and Envestio share the second position.

Current allocation

The main changes were the same as last month : I moved funds from Bondora and Omaraha to Grupeer. As noted above, I also slightly decreased the size of my Mintos portfolio, as well as Investly. Apart from testing new platforms, I’m still planning to greatly invest the share of real-estate and business crowdlending in my portfolio.

 

New platforms

I just signed up to a new P2P platform which looks like a good complement to Mintos. I’m also investigating a new real-estate platform, and still have another P2P lending website to review. Stay tuned !

 

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