Bondora returns remained relatively stable over the month, and did not deviate significantly from returns in February. Rates for the most recent years are still above target levels.
As always, performance charts by country are broken down by the number of loan issuances over the given period, with Orange representing <50 loans, Blue 51-200, and White >200.
Yearly Performance
With a rate of 21.9%, returns for 2019 are still well above their 13.7% target rate. Returns in Spain were the highest of all originating countries, at 26.6%, with Finland returning a rate of 24.7%. Returns for all three originating countries are higher than their 2018 targets, with 2018 returning a cumulative 16.2%.
Quarterly Performance
The first return numbers for Q4 2019 came in higher than their 12.3% target, settling at 16.1%. The previous three quarters were slightly lower, all by about 1%, while still maintaining returns well above their respective targets.
Finland
Finnish originations were much more centralized in Q4 2019, with only C and E rated loans being originated in the country. Both categories had return rates lower than their targets, which is contrary to the previous quarter where all five loan categories still are returning higher rates than their targets.
Estonia
HR rated loans were issued for the first time in Estonia, with a return of 34.8%. All told, six of the eight loan categories produced returns above their target in the most recent quarter, with all loan categories maintaining returns above their target in the previous quarter.
Spain
There were no HR rated loans issued in Spain over the most recent quarter. F rated loans performed well, with a 32.5% return rate compared to their 18.0% target. This return is in-line with the categories return from the previous quarter.
Economic News
As the coronavirus has slowed down many economies throughout Europe, some nations are being proactive about maintaining economic stability. The Spanish government is close to passing a universal basic income measure that would provide economic assistance to all of the country’s residents. While the idea stemmed from the coronavirus outbreak, the intention is for this cash assistance to remain in place long after the pandemic subsides. “We’re going to do it as soon as possible,” said Spain’s minister for economic affairs Nadia Calviño. “So it can be useful, not just for this extraordinary situation, and that it remains forever.”
Meanwhile, in Germany, experts are conducting a plan to slowly open the country’s economy based on business sector and risk. This would allow some workers to go back to work in a safe manner. This plays into the German’s long-term outlook of the situation to create a sustainable model of fighting the virus, while still maintaining economic output. According to a report by a dozen academics in the country, “Future measures must be designed and prepared in such a way that, on the one hand, they ensure good health care and, on the other hand, that they can be sustained over the necessary periods of time,”
In Italy, the government is injecting €400 billion of liquidity and bank loans into the local economy. All told, banks will be able to offer upwards of €750 billion in credit to support businesses. Prime Minister Giuseppe Conte was excited about the most recent economic stimulus, and believes it will be enough to maintain stability in the local economy. “This is real firepower. I cannot remember such powerful measures being introduced in the history of our republic to help with the financing of our businesses,” said Conte.
*As with any investment, your capital is at risk. Investments made through Bondora are not guaranteed; therefore any assets allocated to the Go & Grow account are not guaranteed by any state fund or otherwise secured and it may not be possible to liquidate assets or withdraw money immediately. The yield is up to 6.75% p.a., but please note that the yield achieved in past periods does not guarantee the rate of return in the future. Before deciding to invest, please review our risk statement or consult with a financial advisor if necessary.