January: Another month of consistent portfolio returns

Market & Pricing

Bondora portfolio returns were overall consistent with December’s numbers. Most return figures were slightly lower than expected, but returns in Estonian originations were higher than in December. Additionally, target return rates for 2020 were slightly reduced.

Bondora enjoyed another month of consistent portfolio returns.
Bondora enjoyed another month of consistent portfolio returns.

As always, country-specific performance charts 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

Based on current numbers and projected expectations, Bondora reduced the target return rate for 2020 from 12.8% to 12.4%. Target rates were reduced for both Estonia and Finland, while the 15.1% target return rate for Spain was kept the same.

The total return rate for 2020 originations came in at 17.4%, down 0.5% from December. While Spanish origination returns (17.3%) and Finnish returns (10.6%) were lower, Estonian originations had a higher return rate month-over-month. Returns on Estonian originations came to 20.4%—a 0.5% increase from December.

Yearly performance – January 2021
Yearly performance – January 2021

Quarterly performance

Returns for Q3 2020 came to 27.1%, the highest quarterly return rate on Bondora for not only 2020 but in the past 5-years on record. The most recent quarter, 2020 Q4, had a 17.5% return rate over its 11.1% target.

But maybe the most surprising quarterly return of all was that of 2020 Q2, which jumped higher by 7.8% to 25.7%. This is 13.1% higher than the target return rate for the quarter.

Quarterly performance – January 2021
Quarterly performance – January 2021

Finland

The first reported numbers for 2020 Q4 Finnish originations showed less than 50 loans originated at C and D ratings. Return rates on these originations were also relatively low, at 3.1% for C-rated loans and 3.1% for D-rated loans.

Finland portfolio performance – January 2021
Finland portfolio performance – January 2021

Estonia

After no originations last quarter, F-rated Estonian loans were originated once again and garnered a hefty 22.5% return rate. All of the most recent quarter’s returns were higher than their target figures, with E-rated originations having the highest returns of 26.2%. Q3 returns were notably higher in January than last month, as shown in the table below: 

Estonia portfolio performance – January 2021
Estonia portfolio performance – January 2021

Spain

There remained no Spanish originations in the most recent quarter. Returns for 2020 Q1 Spanish originations fell across the board, although three origination categories remain above their target rate.

Spain portfolio performance – January 2021
Spain portfolio performance – January 2021

Key takeaways

  • The most recent yearly return for Bondora originations came to 17.4%, down 0.5% from last month.
  • Estonian returns grew to 20.4% in January, led by increases across the board in Q3 2020 originations.
  • 2020 Q2 returns were the most surprising, up by 7.8% on the month.
  • No Spanish originations have been made since 2020 Q1.