Monthly origination summary for December 2016

December was a strong month at Bondora for loan originations. We reached a total of €3,236,780 which is just shy of our record hit in the previous month. Holiday events may have limited what could have been another record-breaking total. Below we have outlined the origination totals by country and rating.

Loan origination by country

Estonia continues to lead the group capturing 50.08% of the total originations. The diversity of opportunities across all ratings makes the country an attractive option for many of our investors who wish to diversify across various risk levels. Finland brought in 30.57% of the total and finally, Spain represents 19.35%. These proportions are roughly similar to November.

Share by country – December 2016
Country Interest Amount Share
ESTONIA 21,90% 1621120 50,08%
SPAIN 107,20% 626270 19,35%
FINLAND 46,23% 989390 30,57%

Loan origination by rating

The mid-level risk ratings of “C” and “D” continue to bring in the greatest portion of originations. Because Estonia is the only country to offer “AA” “A” and “B” rated loans, these originations total share was just 13.36%. Finally, “E” and “F” rated loans brought in 28% with HR close behind at nearly 23%.

  • Investors seem attracted to a more aggressive approach to risk. The average interest rate across the “C-F” rated loans among all three countries is 33.57%. HR loans offer a far greater average interest of 98.06% among the Spain and Finland market. These are the riskiest loans offered on Bondora.
  • Ratings “AA-B” brought an average return of 12.10% thereby offering a balance between low risk and lower relative return. These are good loans for more risk averse lenders seeking double digit returns.
  • Among our HR originations the higher interest rate of 111.95% in Spain has attracted considerably more originations than the HR loans in Finland offering a 84.17% interest rate. Originations at this rating is Spain were €583,150 versus €151,285 in Finland.
Share by country and rating – December 2016
ESTONIA SPAIN FINLAND
Rating Interest Amount Share Interest Amount Share Interest Amount Share
AA 10,17% 26760 0,83%
A 11,52% 68165 2,11%
B 14,61% 337120 10,42%
C 19,55% 498340 15,40% 22,95% 52580 1,62%
D 25,40% 393890 12,17% 30,07% 215155 6,65%
E 31,84% 209950 6,49% 35,74% 5840 0,18% 37,76% 318835 9,85%
F 35,49% 86895 2,68% 44,09% 37280 1,15% 52,85% 251535 7,77%
HR 111,95% 583150 18,02% 84,17% 151285 4,67%