Bondora portfolio performance – July 2017

Key takeaways

  • In Spain, the last three quarters have brought in significant realized return figures.
  • Estonian loans have shown the most stable returns for investors – the average net returns are aligned or outperforming their targets.
  • Finland’s lower risk ratings appear to be quite volatile in relation to their target figures.

Actual and targeted bondora net returns by grade and country

Estonia

  • In Estonia’s portfolio, Q2 of 2015 was the only period where average realized net return across ratings was lower than the target return (by 0.06%).
  • From 2015 to Q1 of 2017, only rating “A” has performed under its target return (by 0.09%).
  • Loans with higher risk ratings (D, E, F, HR) have proven to be quite rewarding for investors. Realized returns for the aforementioned ratings have been more than 5 percentage points higher on average than their targets.

Estonia-portfolio-returns-july-2017

Finland

  • First quarter of 2017 has continued to deliver over 20% returns in Finland, outpacing its target by more than 5 percentage points.
  • Q1 of 2016 is the only other period for Finland where average actual returns outperformed its target figure.
  • B rating loans were the worst performing loans across the previous two years.

Finland-portfolio-returns-july-2017

Spain

  • Loans from all quarters of 2015 are still significantly underperforming compared to their targets.
  • With the exception of Q2 of 2016, all ratings from 2016 to Q1 of 2017 have generated remarkable average realized net returns.
  • The average net return over last three quarters for E, F and HR ratings were 29%, 28% and 21% respectively.

Spain-portfolio-returns-july-2017

Actual and targeted bondora net returns across portfolio per quarter

Compared to previous performance report, the most notable changes have been decreased realized returns for Q2 and Q3 of 2016 loans. Still, the 2016 average returns of nearly 16% remain higher than the average target figure. 2017 first quarter realized net returns are still going strong by surpassing the target by 4.6 percentage points (18.51% over 13.91%). While 2016 and 2017 are showing strong performance, loans across portfolio in 2015 are continually performing under the target figures with average returns of 13%.

portfolio-net-returns-per-quarter-july-2017

Actual and targeted bondora net returns across previous 8 years

The big picture has remained the same as in previous reports – last three years are showing growing trend for realized net returns with more than 15% average across all countries. Across all 8 years, Estonia still leads the pack with average of more than 21%, Finland with nearly 15%, Spain and Slovakia trailing with 7% and 3% total averages respectively.

net-returns-8years.july-2017