P2P LENDING PERFORMANCE - NOVEMBER 2018
Seeing as we posted A Brief History of Peer-to-Peer Lending this week, we thought it would be a good time to update how exactly our P2P investments have been doing. November 2018 saw good to great results across the board for Fiscal Frontiers. Presently, we have started investing in Lending Loop (starting with $1,000 CAD) and Mintos Marketplace (starting with €973.17).
November 2018 on Lending Loop was perfect for us! We started the month with 31 loans, each with a payment due in the month, with a total principle of $771.07. Ultimately, we made $9.05 on that $771.07, and while some payments were late, none were missed entirely. Here are some of the key statistics on our Lending Loop investments, with a pretty pie chart (with paler blues representing later payments):
Lending Loop November 2018 Stats
The loan that was in the 8-14 days late range (9 days, to be exact) was rated as “D”, so it’s not necessarily surprising that it was late. The other two loans, which were both 2 days late, were more notable, as one was rated as “E+”, the lowest rating on the platform, and one was rated “A+”, the highest rating on the platform. It will be interesting to keep track of information like this going forward.
The calculation of our income looked like this:
This $9.05 earned on $771.07 represents a 1.17% return on investment (ROI) for the month of November. This would be a 14.08% annual return (ignoring compounding).
If you’d like to join Lending Loop, you can use referral code 4c0e75 or click on this link (https://www.lendingloop.ca/?code=4c0e75) to get a $25 bonus once you lend out $1,500 on the platform.
We added to our P2P investments with a €1,000 deposit into an account with Mintos Marketplace. While we wired the money on October 31, it was not actually in our account until November 14. From there, that left 2 weeks to do some investing. Once all of the conversions and transactions were finished, we were left with €973.17. While Lending Loop requires a minimum loan amount of $25, Mintos allows for loans as low as €10. We took advantage of this lower buy-in price to get in on 97 different loans on the platform across Europe.
As of November 30, 2018, we had 95 loans. 90 of them were current, 3 of them were in their grace period before becoming late, and 2 of them were 1-15 days late. Our 90 current and good loans could be broken down by country like this:
The loans on Mintos are a lot different than those on Lending Loop. While Lending Loop is for loans usually starting at $10,000 and for periods starting at 2 years, on Mintos there are many small loans, as low as a few hundred Euros, with terms as short as 7 days. Owing to this, and the higher volume of loans, it is harder to keep track of, and to communicate, the performance of the overall portfolio. So it may take awhile to figure out the best methods to communicate how the portfolio is performing. A few tidbits:
Our average weighted interest rate was 10.82% (see table below for more details)
Our average weighted remaining term was 4 months and 27 days (see table below for more details)
There were 123 loans made in the period at €10 each
We received $261.11 of principal repayments
We received $0.38 of interest payments
Getting a full month under our belt in December will help a lot with getting a better feel for the information available on Mintos. The information does seem to be quite robust, we just need a little more time to familiarize ourselves with it all.