Monthly origination summary for July 2017

Originations for July 2017 were strong, reaching a total of €2,851,766 which is just over of the average monthly origination for 2017 of €2,846,160. The month outperformed the totals for May, June and February. “HR” rated loans represented the largest share at almost 19% of the total. Investors continue to seek a measured approach to risk as the “C” and “D” rated loans each represented nearly 17% of the total followed by “B” rated loans at around 15%.

Loan origination by country

Estonia was the leader in originations again, claiming 61.16% of the total. Finland captured 21.68% followed by Spain at 17.16%. The high concentration of originations within Estonia is impressive given that there are no “F” or “HR” loans offered and these higher risk loans carry an attractive return. The distribution or originations across the countries is slightly more even than last month. This may signal that Estonia’s dominance is finding a long-term resting place in the low 60% range.

Share by country – July 2017
Country Interest Amount Share
ESTONIA 20.93% 1744228 61.16%
SPAIN 109.49% 489314 17.16%
FINLAND 50.45% 618224 21.68%

Loan origination by rating

Nearly half of the originations focused in the “B,” “C,” and “D” rated loans (48% total) as investors continue to reach for growth with a mild exposure to risk. “AA,” and “A” rated loans represent the lowest share at 6% each. This smaller share might represent investor’s reluctance to go for a lower return amid a surging equities market. “HR” rated loans had the largest share of any group at 19%.

  • For finnish borrowers, investors displayed a clear preference for risk and larger returns as the portion of originations grew with each level of increasing risk.
  • Spain originations represent a similar composition to Finland as investors became aggressive in their pursuit of risk.
  • Generally investors are concentrated in the bottom half of the scale. That is, the “D” through “HR” loans represent 56% of the total origination. Meanwhile, the “AA” through “C” loans represent about 44% of the total.
Share by country and rating – July 2017
ESTONIA SPAIN FINLAND
Rating Interest Amount Share Interest Amount Share Interest Amount Share
AA 10.00% 165704 5.81% 9.26% 16145 0.57%
A 11.92% 158881 5.57% 11.79% 9875 0.35%
B 15.00% 388719 13.63% 14.55% 33251 1.17%
C 20.65% 449078 15.75% 24.37% 1590 0.06% 22.54% 28727 1.01%
D 28.85% 386610 13.56% 27.34% 18457 0.65% 29.17% 72096 2.53%
E 34.29% 195236 6.85% 38.47% 33551 1.18% 37.74% 101949 3.57%
F 55.03% 82027 2.88% 48.85% 173413 6.08%
HR 133.53% 353689 12.40% 83.14% 182768 6.41%