Pandemic P-2-P Portfolio Settings Part 2

It has been almost one week since part one of the article (you can find it here) was released, so it’s time for the final settings for our pandemic portfolio.

The first thing I realized is that I didn’t turn off the Invest & Access strategy and the limit was set to 500EUR (duh!). Considering that last month I withdrew some funds from it, the available balance was around 400EUR. What does that mean? All funds that were paid from the disabled auto-invest portfolios were polling to meet the requested target in the Invest & Access strategy. Once I’ve changed the limit to the available amount of the portfolio, the two auto-invest strategies started to fill up.

First portfolio is filling up

Invest &Access

As the name suggests, it facilitates access to your invested funds. They are referred to as cash out funds. Basically a portion of your funds is accessible instant, if you need them (they have a disclaimer for special market conditions, like this scenario).  The funds are available by instantly selling them to Secondary Market. I needed part of the funds when I withdrew some of the cash and it took almost one week to liquidate them. But still, it was a shorter time than the normal period.

Invest & Access only invests in loans with a rating of A+ to C- and buyback guarantee. So there are two settings that we don’t have to do (I would like to start from B-) 

The recommendation from the platform is to have at least 500EUR invested for better returns. Of course we get good ratings and the portfolio works with less than 500, but it is a recommendation that can have an impact. 

Other options of this type of portfolio, is the diversification and rebalancing of your portfolio daily. Diversification refers to the fact that your loans will be spread over multiple loan originators to minimize the risk (of one going bankrupt). As normal the interest is not guaranteed by Mintos, instead, it is a calculation of the return of the loans.

Invest & Access has the highest portfolio priority in all auto-invest strategies, so all the money will be redirected there until the portfolio target will be reached.

If anyone would like to read more on the subject, everything is explained in their FAQ page under the current investment strategy topic.

Now let’s go to see what settings we can do( live of course).

Invest and Access settings

This is the current dashboard of the portfolio. It looks a bit different than the other. I am sorry that I put two pictures, I don’t want to do the article any longer by doing this, I just think both of them are important.

And also it’s a bit cropped, to reduce the space it takes.

The current average interest rate is around 8.79% with the current settings. I am curious if we can spike it up, by changing some.

The first thing we can change is the Portfolio Target, but as it’s already 350E we will not going to change that. And you know what, after searching the page for options, I omitted the most important aspect.

So sorry guys, I feel that I wasted your time reading this article, it wasn’t on purpose as I had something else in mind. Just to do some customization to the portfolio and validate the condition of the best diversification setting, let’s increase the size to 500EUR (even if I said I won’t…I am learning in the time I am writing), and then let’s consider this post as an update on the previous post with how the portfolio is doing.

And to not fully lose your time, let’s do the secondary market portfolio settings (and reactivate the Invest & Access).

Secondary Market settings

For the secondary market we will apply the same rules as the ones from the main portfolio, but just selecting the secondary market and tinkering a little with the remaining ones.

  • BuyBack Guarantee:Yes
  • Loan Originator Ratings: B+ -> A. This time I want from B+, interested in as many premium loans as I can find.
  • Countries: Finland, Estonia, Denmark and Romania
  • Loan Types: Personal, Mortgage, Car
  • Interest Rate: 9.5%-17.7%
  • Loan Period: 12m-60m
  • Discount: -10%- -2%

As some of the loans that arrive on the secondary market are underperformer or sold from the Invest and Access, I try to gain as much as I can from the discount (and avoid bad deals).

After calculating the loans we have around 900 loans that are matching our criteria.

But I am interested in only 5 as I set a target of 100EUR for the portfolio with an investment of 20EUR each. The reason for this small portfolio is because I have only 1000EUR invested and I already spent 500EUR in Invest & Access. The other 400EUR I will split between the two other pandemic portfolios.

Thank you for reading this, and again sorry if you feel you lost time! I will present an evolution of the NAR in about a month, just letting the loans to settle until then.

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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