Baltic

Estonia, Latvia, Lithuania

My Isepankur Investment After 11 Months

wiseclerk

Three months have passed since I last wrote about the status of my p2p lending investment at Isepankur. I have deposited 8,000 Euro (approx. 10,500 US$) since starting in the end of 2012. I hold over 500 loan parts – the diversification achieved is very good. Together the loans add up to 9,190 Euro outstanding principal. Loans in the value of 248 Euro are overdue, meaning they (partly) missed one or two repayments. 149 Euro are in loans that are more than 60 days late. I already received 2,320 Euro in repaid principal back (which I reinvested).

Chart 1: Screenshot of loan status

Most of the money in my account is working to earn interest. Only 30 Euro are currently held in cash. 5 Euro are tied in a bid on a current loan listing and will originate in the next few days.


Chart 2: Screenshot of account balance

Return of Invest

Currently Isepankur shows me a 26.7% annual ROI (see chart 3 ). In my own calculations, using XIRR in Excel, I currently get a 23.5% ROI. Continue reading →

P2P Lending Volumes in July 2013

wiseclerk

It has been some time since I last did an article at P2P-Banking.com on lending volumes. I do monitor development of p2p lending figures for many markets. Since I already have most of the data on file I can publish statistics on the monthly loan originations for selected p2p lending services. July was another month of rapid growth. As the table shows p2p volumes originated grew strongly for nearly all services when compared to the last month or last years month.


Table: P2P Lending Volumes in July 2013. Source: own research
Note that volumes have been converted from local currency to US$ for the sake of comparision. Some figures are estimates/approximations.

Notice to p2p lending services not listed:
If you want to be included in this chart in future, please email the following figures on the first working day of a month: total loan volume originated since inception, loan volume originated in previous month, number of loans originated in previous month, average nominal interest rate of loans originated in previous month.

P2P Lending Service Isepankur Opens To Borrowers In Finland

wiseclerk

Estonian p2p lending service Isepankur announced today that it now offers p2p loans to borrowers from Finland. Isepankur already opened to lenders from multiple markets last year. Now Isepankur adds Finland as the first foreign market executing the expansion strategy on the borrower side.

Here is an excerpt of the announcement made today:

Dear customer,

We have taken the next step towards building a pan-European credit platform so you could continue enjoying a great return on your money. We have now also started accepting loan applications from Finnish residents side-by-side with existing Estonian borrowers. We will offer one of the best rates in the market whilst trying to deliver a great return to our international and local investors all in one single platform.

Finnish market offers an opportunity to diversify your portfolio and better manager your returns. Here are some key facts about Finland which you might not have known:

Population: 5.4 million; 67% live in towns or urban areas, 33% in rural areas
Monthly wages: average 3,040 €; men 3,352 €, women 2,735 € (2010)
Internet users: 85,3% of the population internet (ITU, June,2010)
A number of payday loan providers has grown rapidly in recent years pushing up the interest rates up to 50% per annum. Lack of competition in the consumer lending and banking market means that even low risk customers typically pay above 20% per annum.
Situated: Northern Europe, neighbouring Sweden, Norway, Estonia and Russia

…

We believe that there is a big potential for isePankur on the Finnish market as most of the competition consists of unethical and unsustainable loan providers. We are sure that investors will find new attractive investments opportunities with solid returns. Please be aware that it might take a couple of weeks for the Finnish investment opportunities to appear on the market. We will soon also allow you to add market-specific configurations to your investment profiles.

…

My P2P Lending Loan Portfolio at Isepankur after 8 Months

wiseclerk 6 Comments

When p2p lending service Isepankur opened up to investors from all EU countries five month ago, I started lending there. In this post I continue the series of posts reviewing the development of my loan portfolio. I have deposited 7,500 Euro (approx. 9,700 US$) since starting. My investment is spread out over more than 400 loan parts. Together the loans add up to 7,859 Euro outstanding principal. Loans in the value of 276 Euro are late, meaning they (partly) missed one or two repayments. 133 Euro are in loans that are more than 60 days late. I already received 1,233 Euro in repaid principal back.

Chart 1: Screenshot of loan status

Most of the money in my account is working to earn interest. Only 98 Euro are currently held in cash. 245 Euro are tied in bids on current loan listings and will originate in the next few days.


Chart 2: Screenshot of account balance

How I used the secondary market

Looking at my account balance (see chart 2) you will notice the relative large amount (2,032 Euro) of sold loans. This is due to 2 developments.
Continue reading →

Isepankur Launches Secondary Market – P2P Loans Now Tradeable

wiseclerk

Today Isepankur launched the possibility for lenders to sell and buy loan (parts) on a secondary marketplace. Lenders can list the loans they want to sell at the secondary marketplace and set a price which either is equal to the outstanding principal or apply a premium (up to 5%) or a discount to that. The fee Isepankur charges if a transaction closes is 1.5% (each) from seller and buyer.

I talked about the advantages a secondary market offers in p2p lending before. Most major marketplace have added the possibility to sell or buy loans. The latest to introduce this feature was Ratesetter.

In the past weeks Isepankur also introduced borrower groups (A, B and C), which group loan applications by discretionary income. Combined with the credit history classification already used (600-1000) loan applications are now classified by a combination of both (e.g. A800).

Review of My Isepankur Portfolio after 5 Months of P2P Lending

wiseclerk 2 Comments

When p2p lending service Isepankur opened up to investors from all EU countries five month ago, I started lending there. In this post I continue the series of posts reviewing the development of my loan portfolio. I have deposited 6,000 Euro (approx. 7,800 US$) since starting. The account currently has 126 Euro in cash, 70 Euro waiting in bids on loans to close and 6,550 Euro is invested in loans. So far I was repaid 476 Euro principal and received 271 Euro interest.


Chart 1: Screenshot of account balance

Distribution of loans on credit grade ranges

My investment is spread out over about 350 loan parts (a bit less loans as sometimes I have 2 or 3 bids in one loan). 5,435 Euro (83%) is invested in top credit grade (“1000”) loans. 780 Euro (12%) in “900” grade loans. And the remainder are experimental bids in “600”-“800” grade loans. Continue reading →