Monthly origination summary for May 2017

Originations for May 2017 were lower compared to last month. The total of €2,710,450 was also lower than the average monthly origination of €2,858,604. More than half of this month’s total is comprised of “B” through “D” rated loans from the Estonian market. Investors continue to balance mid-level risk with a reach for higher interests ranging from approximately 14% to 25%. The average interest across all countries came to 30.99%.

Loan origination by country

Estonia continues to hold the majority of originations at just over two-thirds of the total (77.44%). Spain carried 13.59% with Finland following at 8.97%. However, recent research released by the Fund for Peace cited Finland as the most stable country in the world. This strong signal of political, economic and social strength may, in time, boost originations in the country as investors seek stability.

Share by country – May 2017
Country Interest Amount Share
ESTONIA 19.89% 2098983 77.44%
SPAIN 85.12% 368360 13.59%
FINLAND 44.79% 243107 8.97%

Loan origination by rating

“C” Rated loans represented the largest portion of new loan originations with 26.40% total share, nearly all of it within the Estonia region. The greater availability of these loans in Estonia has been a contributing factor for the country’s dominance in total originations.

  • “B” and “C” rated loans both exhibit higher proportions of total originations this month versus last month. This may indicate a gradual progression towards lower risk loans.
  • Across Estonia, Spain and Finland, 11 of the 14 different ratings have seen increases in their interests over last month.
  • HR loans continue to offer outsized interest in reward for their higher risk. Spain’s HR loans generated 92.66% while Finland’s same rating offered 76.91%.
Share by country and rating – May 2017
ESTONIA SPAIN FINLAND
Rating Interest Amount Share Interest Amount Share Interest Amount Share
AA 10.34% 45409 1.68%
A 11.48% 113799 4.20%
B 14.42% 594904 21.95%
C 19.22% 696733 25.71% 21.81% 18905 0.70%
D 25.18% 392097 14.47% 26.05% 36996 1.36%
E 31.63% 243772 8.99% 37.07% 54205 2.00%
F 35.21% 12269 0.45% 85.12% 56163 2.07% 45.65% 87174 3.22%
HR 92.66% 312197 11.52% 76.91% 45827 1.69%

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