P2P Portfolio April 2020
Another difficult month. More LOs in trouble this month on Mintos. Grupeer is facing persistent scam allegations and a potential lawsuit. Consequently, I have removed Grupeer from the portfolio and considered the investment as a loss. I reduced my share in Mintos, Peerberry and Viventor and will be looking at slimming my P2P investments further.
XIRR April 2020
This month showed a lot more variation than previous months. Iuvo and Mintos were largely impacted by the off-loading of discounted loans on the secondary markets. Delayed payments have also clearly had an impact on several platforms whereas Estateguru, Peerberry, Viainvest and Viventor seem largely unaffected. Viventor performed extremely well due to late payment fees.
Note that Brickshare, Crowdestate, and Trine are not included in the graph since they do not pay on a monthly basis.
As I have just made a major redistribution of funds there are no recommendations this month. I will wait until the portfolio reaches a new steady state, before making further recommendations. So for now it is all on hold.
Quarterly Loan Volume Index
Here are the loan volumes for the majority of my portfolio. I have included last month as a separate point since the current dynamics are indeed very interesting. It shows that some platforms are really feeling the effect such as Mintos and Viainvest while others seem largely unaffected like Estateguru and Swaper. Grupeer is the most volatile.
Platform Risk Grid
The simple risk grid is based on the loan volumes and the level of financial reporting where “no info” is the worst and “audited reports” is the best. This is of course a gross simplification that does not capture the finer financial details of the underlying companies. But I think it can still provide some kind of indication of the risk level of the platforms.
Although it does look very Rosy for Mintos, it does not mean that your investments on Mintos are without risk. The recent issues with several loan originators Aforti Finance, Rapido Finance, Monego, and Metrokredit either defaulting or loosing their license are good examples of that. The risk grid only provides an indication for this particular KPI. There are many other relevant KPIs and most of these should be covered in the annual report, see table below.