The summer is here and I can see fresh leaves gathering rays of sun. Let us see what the weather will bring but now I am on to making a summary of returns for May.
After several hours of compiling, below you can see the result.
|Platform||Deposited EUR||Portfolio total value EUR||Interest income EUR||Affiliate commissions & bonuses||XIRR|
Thank you all who pitched in with their reading time and some of you who recently joined through one of the affiliate links. It means a lot.
This month is special because of record breaking income from platform investments, i.e., 73.80 EUR (28% higher than the last month).
Starting from late April I begun to try out Google Ads. Overall this could pay back in a longer run, but for now it is stated as the first expense.
It is the first time I see a campaign announced for Twino. If you are using this platform, you can get an extra 1% on loans issued by any Latvian loan originator. Here are links to the campaign itself and its terms and conditions (to see this you need to be logged in).
I do not think I qualify because my auto-invest has not picked up any of the campaign loans, however, it was one click away so I pressed to join.
Maybe during June they add some more loans and if all falls in the right place I get a few extra cents.
After introducing the strategy to cover 13-14% loans, the cash-drag stopped. The total allocated 500 EUR bucket got quickly filled up so I rose the bar to 1000 EUR.
The latest strategy seems to pay off. The average interest rates are growing on the account of higher risk. I must mention that I mitigate the risk by choosing only the B- and above ranked originators.
Below is the status of strategies I use and you can refer to their initial setup here. The latest update I did was increasing the portfolio size for the 1st priority strategy.
After having a look at distribution of my investments, I can see that I need to slow down on buying more loans from Peachy in UK.
I would feel more comfortable with about 50% of strategy bucket going to one originator at this point.
Mintos allows me to diversify easily with changing the diversification settings.
Edit the strategy, switch on the distribution setting, set the Peachy to 50% and this should do it.
Distribution of course will not take place right away because I bought the loans and they need to mature. I expect the share of Peachy to drop to 50% in coming 1-12 months.
During May, there are published 6 projects with total volume of 1.7 million EUR.
The funding of 250 thousand EUR for the last published project was found in below 15 minutes.
I am a little reserved about the last 3 projects because it was very hard to find any public information on these very recently created companies. I would not like to think that Envestio is allowing more risky deals to be taken. They do, however, come with very attractive interest rates – 19%, 19.3% and 18.15%.
Two projects where I invested in have issues with keeping their deadlines. This is not surprising for development projects. I invested 531,5 EUR in them and it is approximately half of my portfolio in Crowdestate.
Projects still get updates and there are no other issues than delayed project schedules.
Highlights for May 2019
Default of Lendy
Companies went and will go bankrupt. P2P lending sector is no exception.
Mitigate risks by diversifying. Never put all your investments in one platform.
If you have not already, then there still is a chance to participate in 25 EUR raffle by subscribing on the right side panel or scrolling down if using a mobile device.
Also soon coming up with another raffle – this time sponsored by one of the platforms who showed interest in getting reviewed.
Thank you again for sticking around and I wish you all a great week to come.