Positive Jump in Bondora Originations Portfolio

Market & Pricing

Return rates for the Bondora originations portfolio turned in a great August, with return rates growing once again to exceed the previous month. Investors will be quite pleased with the returns generated from the Bondora platform in August.

Positive jump in Bondora originations portfolio.
Positive jump in Bondora originations portfolio.

Key statistics

  • August yearly returns for 2021 were 0.4% higher than in July
  • 2021 Q2 returns were higher by 1.5%
  • Estonian originations had higher returns across the board for the most recent quarter (2021 Q2)
  • Spanish originations had lower returns across the board for its most recent quarter (2021 Q1)

Yearly performance

There was a surprisingly positive jump in returns for the Bondora originations portfolio. In August, the cumulative return rate for 2021 originations came to 15.6%—a 0.4% jump from the previous month. This return rate was also 5.7% higher than the target rate for 2021. Finnish originations returned 0.7% higher, while Estonian originations grew by 0.5%.

Yearly performance – August 2021
Yearly performance – August 2021

Quarterly performance

Returns for the most recent quarter were solid this month. 2021 Q2 returns were higher by 1.5%, up to 14.1%. The previous quarter, 2021 Q1, was also slightly higher, up to 17.0%. Meanwhile, the return rate for 2020 Q1 originations fell to its target rate of 12.8%.

Quarterly performance – August 2021
Quarterly performance – August 2021

Finland

The lone Finnish origination category—D-rated loans—performed well, coming in 1.1% higher for the most recent quarter and 0.3% higher for the prior quarter. Interestingly, 2020 Q4 returns were higher in both D-rated originations (up 0.3%) and C-rated originations (up 0.1%).

Finland portfolio performance – August 2021
Finland portfolio performance – August 2021

Estonia

2021 Q2 Estonian originations showed significant strength this month. All origination categories returns were higher across the board:

  • A-rated: +3.2%
  • AA-rated: +10.0%
  • B-rated: +1.1%
  • C-rated: +1.5%
  • D-rated: +2.0%
  • E-rated: +1.8%
  • F-rated: +1.9%
Estonia portfolio performance – August 2021
Estonia portfolio performance – August 2021

Spain

Unlike Estonian originations, Spanish originations went the complete opposite direction and were lower in all categories for their most recent quarter (2020 Q1):

  • C-rated: -0.7%
  • D-rated: -0.6%
  • E-rated: -0.8%
  • F-rated: -0.9%
  • HR-rated: -0.8%
Spain portfolio performance – August 2021
Spain portfolio performance – August 2021

Conclusion

Bondora investors will be happy about the higher return rates for 2021 originations. The 0.4% month-over-month growth rate was solid. Estonian originations led the way, growing across all rating categories. Estonian AA-rated originations led the pack as they were 10% higher than the previous month. Meanwhile, returns for Spanish originations lagged. Although this is not an apples-to-apples comparison, as the most recent quarter for Spanish originations was back in Q1 2020.