08-06-2019, 02:11 PM
On first look the loss rate of 0.69% looks amazing and would result in a long term return if invested in 12% loans of around 11%. But we know stats can re misleading and interpreted in many ways.
The loan defaulted figure has been falling since Feb to Apr, 7.5% to 7.1%, but only because only £103,000 was defaulted during that period whilst over £9,000,000 went overdue, showing a reluctance to default loans.
Loans over due is worrying. The have from 16% to 18.2%, due to the above. This figure is slightly misleading because an active investor would be recycling into new loans and have a lot more than 25.3% in late and defaulted loans. With lots of loans taking several years to resolve, the longer you stay in p2p, the greater percentage of your portfolio becomes late and defaulted.
If we look at late and defaulted vs the live loan book: Live loan book - £87,989,725
Performing loans - £14,249,749 (16.2%) = Total loans - repaid loans
Defaulted loans - £20,649,757 (23.5%)
Late loans - £53,090,219 (60.3%)
Which is a slightly worrying picture and shows that the actual return of 11.6%( This figure is already skewed by the Big Hitters who earned upto 33% more interest. So the average investor might get 9% and the BH 13%.) is going to be way off.
Mays figure will be interesting.
The loan defaulted figure has been falling since Feb to Apr, 7.5% to 7.1%, but only because only £103,000 was defaulted during that period whilst over £9,000,000 went overdue, showing a reluctance to default loans.
Loans over due is worrying. The have from 16% to 18.2%, due to the above. This figure is slightly misleading because an active investor would be recycling into new loans and have a lot more than 25.3% in late and defaulted loans. With lots of loans taking several years to resolve, the longer you stay in p2p, the greater percentage of your portfolio becomes late and defaulted.
If we look at late and defaulted vs the live loan book: Live loan book - £87,989,725
Performing loans - £14,249,749 (16.2%) = Total loans - repaid loans
Defaulted loans - £20,649,757 (23.5%)
Late loans - £53,090,219 (60.3%)
Which is a slightly worrying picture and shows that the actual return of 11.6%( This figure is already skewed by the Big Hitters who earned upto 33% more interest. So the average investor might get 9% and the BH 13%.) is going to be way off.
Mays figure will be interesting.