Pandemic P-2-P Portfolio Settings

I’ ve been reading lately lots and lots of news regarding the P2P Investments. Mostly negative to be frank with you and all with the note of panicking the investors. As an immediate reaction of the investors, some of them started to cash-out their investments and withdraw their money from the platforms.

The news was regarding some platforms that were built on pyramidal schemes or they were a scheme itself and the possibility of extending the loans and not paying the current months, during this epidemic. There are multiple news and discussions in financial groups, some of them encourage the investors o keep their money in the platforms and sustain the existing loans, some are on the ‘CASH OUT and RUN‘ tone.

Did I over-reacted?

My first reaction to reading all that data was to stop my investments and cash out half of the account. During the period of waiting, until some of the loans were replayed, so I can withdraw the available cash, I came to the conclusion that I don’t want to be part of the problem, instead, I want to be a part of the solution and support.

Now let’s be honest, the P2P industry is not based on my 1k EUR account, when it amasses so many investments, but as someone said: “every penny counts“. My train of thoughts took me on the journey from cashing-out 500EUR to just 250EUR….then 200 and finally settling to the symbolic amount of 135EUR. Basically almost all the profit realized until now.

I am sorry that I didn’t keep my record before the withdrawal, but this is the account overview at the date of writing this article.

So as we see the settings we kept for almost one year were profitable and even in these trouble times we are still close to a NAR of 10%.

But as the name suggests, I think we should go to the next section of the article and proceed with creating new settings taking into consideration the current economic situation.

Brand new settings

So the first thing we will do is to stop the current investment portfolios, even the Invest & Access one (we have to reconfigure that one also)……and done! Now, because they are stopped all the money that will be paid via loans will get back into our main balance.

Next we will proceed with the creation of a  new strategy and I prefer the short term – long term strategies (so we will have 2 portfolios).

I see that there are so many loan originators and it is hard to take a full picture. But I will select the buy-back guarantee option as the first step. Another nice feature is the Mintos Loan originator Rating. So each credit broker gets a score (and I see that they are from D to A, like the teacher grading you).

We will un-check the ones under B- and now only 53 loan originators are selected. Now there are two more settings to do: Countries and Loan Types.

Selecting Countries

I have the pandemic spread map open on the other monitor and I am looking at what countries are best situated in the recovery rate and the total number of cases. I will choose Finland, Estonia, Latvia, Poland, and Romania. I think these countries will have a better economy in the next period and have a good medical system (except for the last one, but I try to support my country as much as I can). This is my personal opinion and I would have loved to have more countries like Germany or Austria who have a good economical system (but I guess they don’t need to borrow money, ha).

Using the settings until now we have 29749 loans matching our criteria.

Selecting Loans

I will go on the same settings as previous portfolios: Personal, Mortgage, and Car Loans. I would be interested in agriculture loans also, but from the many movies, I watched I have the impression that a farmer will take this loan and pay it back at the next harvest. As this year you have a shortage of work-hands in the field plus the dry climate, maybe it will be hard to pay the loan.

And we have 17608 available loans to invest in. They are more than enough.

Long Term Portfolio Configuration

For the last step, we have to configure the loan period, interest rate, and loan amount (plus the other settings like reinvesting and such).

As we are on the long term investments the period is between 12 months and 60, with an interest rate above 9.50%.

And this bring us back to 9119 loans. The last step is to hit agree and set the portfolio (and done!)

A fast recap of the settings if you don’t want to read all the article:

  • BuyBack Guarantee:Yes
  • Loan Originator Ratings: B- -> A
  • Countries: Finland, Estonia, Latvia, Poland and Romania
  • Loan Types: Personal, Mortgage, Car
  • Interest Rate: 9.5%-17.7%
  • Loan Period: 0m-60m
  • Discount: -10%- -2%

Short Term Portfolio Configuration

For the short term selection we will have the same settings as for the long term, the only difference at this time will be the period and the Short Term loan type. It is possible that in the near future to tinker a bit with it and risk in more countries and loan types. But in that case I will come back with an update.

Settings:

  • BuyBack Guarantee:Yes
  • Loan Originator Ratings: B- -> A
  • Countries: Finland, Estonia, Latvia, Poland and Romania
  • Loan Types: Personal, Mortgage, Car and Short Term Loans
  • Interest Rate: 9.5%-17.7%
  • Loan Period: 2m-12m

With this settings we have 6973 loans to invest in. So save and activate.

Now, there will be an idea to look at the secondary market and we have another investment type to add to the portfolio, the Invest and Access system. I prefer to wait one or two weeks before configuring these settings just to let some old investments flush out and have some credit available.

I will be back with another article once I set them up.

And the last thing we have to do today is to prioritize the investments. As you see we put the two created portfolios on the top of the food chain.

Portfolio priority order

Thank you for reading this! And if you like this section stay ‘tuned’ for the next article on Invest and Access and Secondary market portfolio. #staysafe

Disclaimer: I am not a financial consultant, all the information you find here are my decisions, I taken at that moment, on my own analysis. I am open to any type of discussion about money. If you want to replicate my portfolio take into consideration that it is your money.

Posted in P2P

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