Mintos auto-investment with 5 strategies

In the previous post I have mentioned one of the issues relating to the lowered interest rates from Mintos. Today I have decided to address this.

Several of the loan issuers now give a chance to get 12%, 13% and even 14% of interest. Let us have a closer look at them.

Log in and try creating a new custom strategy (you can read here why one should avoid the default ones).

To begin with we will select the originators with rating B and above. I personally prefer to do that for lowering the risk of default of the loan issuer. Same goes for selecting only those loans which has a buyback guarantee.

Then select the highest percentage, i.e., 14%, set loan term to all range and click on Show summary.

This results into the image you see below.

14% and above

All of the 14% loans are short term loans originating from Armenia and their issuer is Vraks.

Let us do the the same for 11%, 12%, 13% yields and summarize.

13-13.9%
12-12.9%
11-11.9%

This gives us better understanding where the higher rate loans originate and how could we potentially lower the investment risk.

There are couple of points which I will take into account:

  1. Split the portfolio volume into several “risk buckets” and mitigate risk by choosing highest ranked issuers with highest interest available. The summary we did above will help us to do that.
  2. Minimize the term.
  3. Short term loans Latvia could be avoided because of the coming up legislation change and situation it has created. Short term issuers are expected to be out of business in Latvia by end of 2019 or beginning of 2020 but I would like to take this info into account already now to get used to potential change during 2019.

I have invested around 1000 EUR in total, therefore I will create 5 buckets of 200 EUR each for different custom strategies. You can pick any or a combination of them which you think suites you the best.

Strategy #1

I will leave the current strategy with 200 EUR and sell all the rest of the loan volume.

Strategy #2

14% strategy leave not so many options, it will consist Albanian short term loans originating from Vraks.

Strategy #3

This strategy will consist of previously shown 13-13.9% loans.

Strategy #4

This strategy will consist of previously shown 12-12.9% loans.

Strategy #5

This strategy will consist of 11-11.9% loans. We will lower the risk by selecting only A, A-, B+ rated originators.

This is the distribution of loans which I am willing to compromise by selecting originators with higher rating.

Summary

We have created the following auto-invest strategies.

One could ask, why not simply choose 11-14%, deselect lower ranked originators and go with one strategy. Of course you can do that, however, in this way there is a chance you end up with 11% yield loans filling your whole portfolio. Whereas, here we diversified while gaining hopefully more than 11%.

It is left to wait to see how much time it takes to sell most of the investments I have.

Thank you all for sticking to the end of this long post and I hope that you make the most of your custom Mintos auto-invest strategies.

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