Monthly origination summary for October 2017 – ‘C’ rated loans triumph

Welcome to October’s monthly origination post, here we go in to detail about the distribution of investments that were made and some interesting stats per country of origin. In October, we saw a total of €2,980,477 invested through the Bondora platform and at the time of writing we now have 30,663 investors. We are excited to see what November holds, but for now let’s dig deeper in to October’s loan origination by country, rating and amounts.

Loan origination by country

Estonia clearly shows the largest amount of loans funded in October with €1,845,963, or 61.9% of the total share. Finland accounted for just over one quarter of the total share with €797,377 loans funded and we saw the lowest share in Spain at €337,137. This is a great way for us to see our investor’s attitude to risk and the data below would suggest a majority view to a more balanced portfolio, opposed to the more progressive portfolio’s associated with ‘F’ and ‘HR’ loans in Spain and Finland.

Share by country – October 2017
Country Interest Amount Share
ESTONIA 21.65% €1,845,963 61.9%
SPAIN 92.62% €337,137 11.3%
FINLAND 43.26% €797,377 26.8%

Share by rating, country and amount

The table below contains the weighted average interest rate, total amount and share per country of origination and rating. Here are some key takeaway’s we can see:

  • Loans graded with a ‘C’ rating account for the highest share of investments at 22.48% of the total. Specifically in Estonia, €586,761 of ‘C’ rated loans were funded with an average interest rate of 20.98%
  • ‘A’ rated loans had the lowest number originated at 6.04% of the total share. Although, this figure stood a 8.99% of all loans originated in Estonia
  • 83.71% of loans originated in Spain are rated F and HR
  • Finland has the most diverse loan portfolio, with originations in each credit rating from AA – HR
Share by country and rating – October 2017
ESTONIA SPAIN FINLAND
Rating Interest Amount Share Interest Amount Share Interest Amount Share
AA 9.97% €168,529 5.65% 9.39% €39,720 1.33%
A 11.92% €166,085 5.57% 11.52% €13,802 0.46%
B 15.12% €303,468 10.18% 16.02% €53,993 1.81%
C 20.98% €586,761 19.69% 23.42% €1,590 0.05% 21.63% €81,681 2.74%
D 29.35% €402,885 13.52% 30.21% €13,519 0.45% 28.99% €108,894 3.65%
E 34.77% €218,235 7.32% 39.79% €39,810 1.34% 37.9% €144,572 4.85%
F 54.46% €114,448 3.84% 53.59% €247,257 8.30%
HR 136.87% €167,770 5.63% 87.85% €107,458 3.61%

Why is all of this important?

This data can provide a great reference for someone starting out or for those thinking of updating their investment strategy. You can also use this data to help you choose your filters when using Portfolio Pro, keeping in mind the interest rates charged to borrowers and the total amount originated in each credit grade on a monthly basis.

Next month we will compare how and why this has changed, in the mean time we would love to hear your own personal conclusions so please leave us a comment below.

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