Portfolio performance remains steady in February

Market & Pricing

Returns for Bondora originations remained steady in February, making it another month of consistent returns on the platform. This performance was led by increasing returns from Estonian originations.

Portfolio performance remains steady in February.
Portfolio performance remains steady in February.

As always, country-specific performance charts are broken down by the number of loan issuances over the given period, with Orange representing < 50 loans, Blue 51-200, and White > 200.

Yearly performance

The overall Bondora return rate remained at 17.4% for the second consecutive month. The best-performing originations were in Estonia, where the return rate grew from 20.4% to 20.8% on the month. Spanish loans had the most significant decrease in return rate, falling by 0.9% to 16.4%, but still well above their target of 15.1%. Meanwhile, Finnish originations came in at a return rate of 10.2% on the year, down 0.4% from January.

Returns for 2019, while lower, came in slightly above their target rate of 13.7%, returning 13.8% in total. 2014 originations were the only year to increase, up by 0.1% to 5.0%.

Yearly portfolio performance – February
Yearly portfolio performance – February

Quarterly performance

Returns from the most recent quarters trended positively in February and headed in the right direction. 2020 quarterly returns were as follows:

Quarterly portfolio performance – February
Quarterly portfolio performance – February

Finland

In the most recent quarter, returns for both origination categories were higher in February, with C-rated loans returning 4.7% (up 1.7%). D-rated loans returned 5.4% (up 2.3%). Returns for Q1 2020 and Q4 2019 fell for both C- and E-rated loan categories.

Finland portfolio performance – February
Finland portfolio performance – February

Estonia

All Q4 2020 categories of Estonian loans’ return rates grew, with the lower rating categories seeing the biggest increase.

  • B: +2.2%
  • C: +2.3%
  • D: +2.1%
  • E: +3.2%
  • F: +4.2%

The same trend was seen in 2020 Q3 loans, as each of the four origination categories saw increases in returns.

Estonia portfolio performance – February
Estonia portfolio performance – February

Spain

Unlike Finnish and Estonian originations, where many rating categories increased their returns, Spanish originations saw a decrease in return rates across the board for the most recent quarter. Returns for E-rated loans fell the most—declining by 1.3% to 13.3% on the month.

Spain portfolio performance – February
Spain portfolio performance – February

Key takeaways

  • Returns for 2020 originations remained consistent at 17.4%.
  • Estonian originations for the most recent year grew the most, up by 0.4%.
  • For Q4 originations, all five Estonian categories saw an increase in return rates.
  • Spanish originations performed the poorest, with return rates declining across the board.