My journey through P2P land started back in January 2020, right before the Covid pandemic became a thing in Europe. I must say it has been a very bumpy journey and I'm still working on having a portfolio that is both safe and yields a reasonable amount.
P2P lending strategy
Knowing P2P is a rather risky business I decided to start very small in early 2020, and thanks to that the impact due to the Grupeer situation wasn’t that big. My idea is to keep a healthy 10% to 12% yield on among different P2P platforms.
- I target mid to low risk loans in all the platforms and when available I prefer short term over long term ones. This in theory would improve liquidity.
- From Finbee their C and D rated loans had a default ratio of 10% and 20% respectively during 2019.
- When available use auto lending features. It can become very annoying to be regularly checking whether there’s loans available to invest in.
- Unfortunately Business loans on Finbee have to be picked up manually :(
- Target mostly business loans instead of personal loans.
- At this stage I don’t do any withdrawals from the platforms, all the generated interest is invested in loans again as soon as possible.
- I track my P2P journey using a Google sheet you can get access to here.
Current distribution
I currently have roughly €3990.8 in 6 different P2P platforms, that said... €404.37 are still under Grupeer's control... I still have some hope I'll see some of that money back sometime during 2021 so I haven't declared it as loss just yet.
The evolution of the portfolio has been quite slow since I decided not to get too excited with the high yields and give these platforms some time to prove they are worth the risk. During 2020 I added here and there a few hundred euros to each platform with the exception of Grupeer.
If you feel like joining any of these platforms, you can use the following affiliate links and push me a step closer to financial freedom in the process :)
Platforms Yield
Finbee and Bondora have shown the most consistent performance since I started. Finbee usually delivers above 10% avg yield (almost double Bondora's yield xD). Both Mintos and Peerberry are somewhere there below the 10% but clearly above the shi Bondora Go&Grow. Keep in mind these are monthly estimations and that also fluctuate due to cash dragging.
Timeline logs:
- November 2020: the huge yield spike was due to some buybacks kicking-in, in Robocash and getting back a lot of delayed interests.
For the last 4 months, the portfolio has shown an annual average yield between 9% to 10%, which I'm pretty happy with. However I believe this yield could be easily increased to 10% to 12% with some tweaks I have in mind
Collected interests
These are the collected interests so far:
Timeline logs:
- March 2020: was the last month Grupeer payed interests to me.
- November 2020: a fair share of buybacks kicked in in Robocash resulting in a substantially huge spike in returns.
- April 2021: I decided to leave bondora read here
With the current trend by the third quarter of the year I should have collected enough dividends to cover the pain caused by Grupeer.
Delays and dragging
It’s very important to be on top of the performance and health of your P2P portfolio so you can understand how things are going. Besides the yield and the earned interests, I decided to also monitor delay and defaults of loans along with cash dragging. Since the platforms report these details very differently, and some of them don't even do it... I starting collected them myself once a month and generating the following graphs.
Delays
I started tracking delays back in August 2020 so I don’t have as many data points as in the other graphs. Here you can see my numbers per platform:
Mintos
Mintos is by far the most troublesome platform of them all and this is very clear in the following graph. Current funds rarely are above 75% :(, in fact I was a bit concerned back in January when I noticed about 20% of my funds delayed by “> 90 days”. Even though this value has slowly come down to 10.3% in March, I’ve decided to not add more money to Mintos in the meantime.
Finbee
I just love the Bee!!! Not much to say about this platform, the lowest my “current funds” have ever been in this platform was 85% in early March. Here and there there’s some loans delayed “up to 30 d” reaching 5% to 6% of my funds, but then it drops again no .
Bondora:
Since I’m using Bondora Go&Grow I don’t have visibility of the loans my money is invested in.
Robocash:
Robocash loans had some hard times back in August 2020, with up to 6.5% of my loads being delayed for up to 30 days. However they were all purchased later on by their buyback guarantee and haven’t seen any delays since then (too good to be true? maybe).
Peerberry
This platform has also been pretty solid, with a few delays reaching up to 15 days, but nothing ever going beyond that.
Dragging
I started tracking cash dragging on January 2021. Here both Mintos and Finbee seem to be the ones struggling a bit now and then. I'm not surprised about Finbee since they have a smaller market place and I focus on Business loans. Mintos is a bit concerning since they are the biggest P2P platform out there, however in this case I believe the reason for the dragging is my restrictive auto lending configuration.
I started tracking cash dragging a few months ago, so don’t have more than a few data points at this stage. Here both Mintos and Finbee seem to be the ones struggling a bit now and then. Not surprised about Finbee since they have a smaller market place and I focus on Business loans. Mintos is a bit concerning since they are the biggest P2P platform out there, however in this case I believe the reason for the dragging is my restrictive auto lending configuration.
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