Monthly origination summary for February 2017

Originations for the month of February dipped since last month as our total reached €2,460,575. However, there was a noticeable increase in the total interest for Finland which came in at 49.99% compared to 45.38% last month. Estonia held steady with a total interest of 20.84% compared to 20.79% last month. Spains interest dropped significantly from 98.01% to 86.34%. The figures for February bring the total interest across all countries to a respectable 34.67%.

Loan origination by country

Estonia’s range of ratings continues to attract investors as the lower risk A, AA, and B rating loans capture 23.51% of the total originations for the month. The popularity of these ratings coupled with the lower total interest rate illustrates investor’s drive for preserving capital. Moreover, a broad use of the “Conservative” Portfolio Manager setting may also explain this trend.

Interestingly, Finland’s share dropped while its total interest grew. It will be interesting to see if the country’s surge from 45.38% last month to 49.99% in February will encourage a greater sharer of the total originations in the future.

Finally, Spain represented the highest level of originations among the E F, and HR ratings. Investors were rewarded for this risk with the high total interest rate of 86.34%.

Share by country – February 2017
Country Interest Amount Share
ESTONIA 20,84% 1728405 70,24%
SPAIN 86,34% 348970 14,18%
FINLAND 49,99% 383200 15,57%

Loan origination by rating

Investors opted for a balance between risk and reward as B and C rated loans represented the two most popular choices as measured by proportion across all countries at 18.97% and 22.23% respectively. Meanwhile higher rated loans carry a smaller portion of the total due to their limited availability.

  • Originations reflected a similar composition to the previous month with most activity concentrated among B through E rated loans which captured 71.06% of the total.
  • F Rated loans continue to be less popular as investors are driven to the decisive action of either a high rating with a lower relative return, or a much lower rating with an aggressive return.
  • HR rated loans continue to represent the third greatest portion of the total at 16.38% across all countries. This activity is centralized in Spain.
Share by country and rating – February 2017
ESTONIA SPAIN FINLAND
Rating Interest Amount Share Interest Amount Share Interest Amount Share
AA 10,16% 25250 1,03%
A 11,69% 86485 3,51%
B 14,30% 466680 18,97%
C 19,32% 522935 21,25% 18,05% 24025 0,98%
D 25,75% 330975 13,45% 28,48% 29510 1,20%
E 31,50% 254795 10,36% 37,33% 2440 0,10% 33,89% 116965 4,75%
F 34,71% 41285 1,68% 43,34% 59105 2,40% 45,72% 97015 3,94%
HR 95,60% 287425 11,68% 81,98% 115685 4,70%