Some bright spots amid the coronavirus pandemic

Market & Pricing

Yearly returns on the Bondora platform were within 1% of their rate last month, as rates for 2019 are still well above their targets.

As always, performance charts by country 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

In February, the 2019 yearly return came in at 24.3%, with all three Bondora originating countries higher than their target rates. Finland had the highest return rate for 2019, at 28.0%, while Spain’s return rate was the highest in 2018, coming in at 25.8%.

Portfolio Performance yearly - feb2020

Quarterly Performance

The most recent six quarters are all above their target numbers. Overall, the Q2 2019 had the highest return rate of all quarters, at 27.1%, and all returns for the past seven quarters are in double figures.

Portfolio Performance quarterly - Feb 2020

Finland

All five originating categories in Finland were above their target rates for the most recent quarter. F rated loans were the highest in Q3, coming in at a rate of 25.9%.

Port Performance FI - Feb 2020

Estonia

Six out of seven Estonian categories had higher rates this month than the month prior. While F rated loans had the highest return rate (32.9%), they did so with the lowest amount of originations. For rating categories with the highest number of originations, E rated loans performed the best, having a 27.9% return rate.

Port Performance ET Feb 2020

Spain

Spanish returns were within 3% of last month’s return rates compared to last month. C and D rated loans came in slightly lower than their target rates on the month, while E, F, and HR rated loans were still higher than their quarterly targets.

Port Performance ES - Feb 2020

Economic News

While the coronavirus has caused some level of unease in the world, there are a few bright spots which are reasons for optimism in the global economy. Supermarkets such as Aldi, Asda, Lidl, and Tesco have reported they will hire thousands of new employees to meet consumer demand. The UK government has also stepped in to relieve some of the stress of employees who can’t work, by agreeing to pay 80% of the wages for those finding themselves out of work due to the virus. Other retailers in the United States — like CVS and Dollar General — will hire up to 50,000 employees of their own.

Additionally, online grocery retailers are seeing a boost in demand, as are restaurant delivery services. Companies like Deliveroo and Glovo aren’t just gaining more business during this time, they are doing so responsibly. Both companies are adapting to the new normal of social distancing, and have introduced contactless delivery so that customers do not have to come in direct contact with a delivery person, making these deliveries safer in the process.

With planes grounded and factories shut down, the coronavirus has also caused a massive slowdown in global warming. Air quality is rapidly improving, and carbon dioxide emissions are expected to decrease this year. This could be the push the world needs to see the value of reducing emissions for the long-term even after the pandemic subsides.

In upbeat news out of Estonia, companies in the country can now be created using only a digital, Smart-ID. All told, the process which uses a self-service portal only takes about three minutes to complete. This is just another in a long line of technological innovations from Estonia.

*As with any investment, your capital is at risk. Investments made through Bondora are not guaranteed; therefore any assets allocated to the Go & Grow account are not guaranteed by any state fund or otherwise secured and it may not be possible to liquidate assets or withdraw money immediately. The yield is up to 6.75% p.a., but please note that the yield achieved in past periods does not guarantee the rate of return in future periods. Before deciding to invest, please review our risk statement or consult with a financial advisor if necessary.