POSTS FROM PAST WEEK
Performance of recovery process – December 2016
Yesterday we provided our monthly update on the performance of recovery efforts. Estonia’s loan recoveries showed the strongest performance (75%) since Q3 of 2015. Spain and Slovakia each decreased compared to Q2 of 2016. The average recovery among all four countries is just over 2/3 of the value of the principal.
Weekly industry news roundup – December 12, 2016
In our weekly industry news summary we looked at a report from Moody’s that suggests the recent decision to grant bank charters to FinTech firms may help the industry. Nasdaq posted an article on Friday about emerging rules for Chinese P2P lenders. Business Insider shared comments from the CEO of the Financial Conduct Authority expressing the importance of transparency in the world of marketplace lending. ABL Advisor reported on Moody’s expectation that the credit quality of marketplace loans originating in the US will hold steady throughout 2017. Finally, Finance Magnates explored the benefits of P2P lending as an investment strategy that can occasionally outperform more conventional instruments. Bondora was mentioned in a German article from DEAL Magazine which talks about the vast differences in interest rates within the Eurozone and the opportunities it opens for P2P lending sector.
Understanding the risks of investing in the secondary market
On Friday we explored the risks of investing in the Secondary Market. Investors must remember that many of the borrowers in this marketplace exhibit a higher risk than loans seen in the Primary Market. Some of the risks include irregular cash flows, the cost of premiums and opportunity costs. Before investing in the Secondary market be sure the risks are right for you.
Monitoring loans with customized Repayments report
Last Thursday we explained how investors can generate customized reports to manage their holdings using the “Repayments” feature on the “Reports” page. This data shows how well the borrowers are fulfilling their repayment obligations. All information can be downloaded to a CSV file for further examination.