Market & Pricing

Gross profits earned by Investors on Bondora

Market & Pricing

There was a recent discussion on the profitability of investments on Bondora; thus, we have decided to provide a detailed breakdown of the interest amounts paid out to Investors across all our markets. The information is covering the period since the inception of the company to September 24, 2015, and includes a) loan origination amount, b) interest paid…

Bondora Ratings: Performance since the Launch

Market & Pricing

In November 2014 we introduced Bondora Ratings with the goal of pricing loans in accordance with the individual risk associated with a particular borrower. Thus, the interest rate at origination is based on the Expected Loss (EL) associated with a particular Rating and the Expected Return E(R) (or I = EL% + E(R) if presented…

Introducing risk-based pricing

Market & Pricing

Next week we will start pricing loans automatically according to their risk-level based on the Bondora Rating calculations. This will enable to make a better offer for lower risk borrowers and charge a higher interest rate for higher risk borrowers. Bondora Rating is defined by the Expected Loss Rate E(L), which is presented in the…

Explaining Bondora Rating

Market & Pricing

Here are answers to the questions our investor community has asked about the Bondora Rating. Why switch to Bondora Rating? Why is it good for me as an investor? About Bondora Rating Bondora Rating will introduce a fair risk-based pricing model to all the loans on the platform. Until now loans have been classified not…

Introducing the Bondora Rating

Market & Pricing

As announced in some earlier newsletters, we are going to replace the current credit groups and payment history criteria with a credit scoring model that will assess each loan application separately based on specific criteria and assign them a certain Bondora Rating accordingly. With the introduction of the new credit scoring system, every loan application…

Why your return rate may fluctuate

Market & Pricing

If you are a new investor on our platform and don’t have many repayments from our investments yet, you may notice that your return rate may change significantly overnight. This happens because of the way we display your return, which is an annualized figure. To calculate your annualized return rate, we account for all actual…

Hidden opportunity in longer-term loans

Market & Pricing

 In general, longer maturity of a loan is usually associated with higher risk; thus, some investors avoid investing into loans that have a duration of over 36 months. However, over 50% of the loans that came to Bondora marketplace this year had duration of over 36 months, so we decided to analyze if investors are…

Upcoming introduction of a Bondora Rating

Market & Pricing

We are preparing for the launch of a Bondora Rating that would be used to estimate risk of loan applications and would like to give you an early preview of the upcoming change. The model used for calculating the Rating accounts for market specific levels of probability of default, exposure at default and recovery rates; thus, incorporating…

Another record month at Bondora

Market & Pricing

We hit another record month this September with originated loan volume reaching EUR 2.25 million or a 10% increase from August. Big thanks to all our investors for the continued trust. We are constantly working on providing you with a larger selection of profitable investment opportunities.

Credit card refinancing in Estonia

Market & Pricing

We recently experienced a major increase of applications from people looking to refinance their credit card balances. The proportion of demand for refinancing other liabilities in Estonia for the months in 2014 amounts to nearly twice as much as in our total portfolio with all other countries included. The demand accounts to 160% compared to the same period in the…