Niall’s virtual diary archives – Monday 30 August 2021

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Monday 30 August 2021: 20:49. It occurred to me that I haven’t posted an update on my P2P earnings #mintos in about six months, so I thought I would do so now:

MonthMintos annualised return for each monthMintos non-earning capitalMoncera annualised return for each month
December 202011.29%11.4%
January 2021 10.21%11.4%
February 202112.82%11.4%
March 2021 17.57%11.4%8.54%
April 2021 10.63%17.1%8.59%
May 2021 10.46%18.8%5.97%
June 2021 12.97%22.7%9.39%
July 2021 11.70%27.4%11.53%
August 2021 10.91%27.4%11.42%

That non-earning capital, to remind readers, is the money I had invested in Polish Capital Service which is currently under a covid restructured debt repayment plan and during which it isn’t paying out. So considering that this drags down the annualised return, the returns from Mintos on the earning capital have been very healthy indeed such that the typical annualised return has barely dropped over this time last year, and that is even as I have been drawing out about half of my Mintos total investment – as evidenced by the proportion of non-earning capital more than doubling as a relative share. This is mostly because I was lucky – last post on Mintos I mentioned that I was moving away from car loan giant Mogo (since renamed to Eleving Group) into DelphinGroup and IuteCredit. Around March DelphinGroup bought back all my loans and stopped issuing new ones on Mintos, so I decided to take a punt on investing in Creditstar who think fourth best on Mintos, despite their 6-7 rating by Mintos. I thus locked in a bunch of loans at 14-15% APR, and to date neither IuteCredit nor Creditstar have bought back their loans, so I’ve been doing rather a lot better than the typical 9% APR on new loans in Mintos last few months. Eleving Group/Mogo began buying back my high APR loans in dribs and drabs over several months, and I think I became completely clear of them in July through doing absolutely nothing, which suits me fine as their new loans pay peanuts. On Mintos, I am now about 41% IuteCredit, 39% Creditstar and 24% ESTO (ranked 11th by explorep2p, yet rated 8 by Mintos), albeit on less than half the total investment when compared to January.

You will notice a new column up there for Moncera. This is a fairly new P2P investment site exclusively for Placet Group, who are rated the best quality P2P lender by explorep2p, but because they pay such paltry APRs on Mintos I’ve never invested with them. However the exact same loans on Moncera pay considerably better than on Mintos, and indeed were paying better than anything somewhat safe on Mintos (> 10% APR), so from March onwards I moved over half of all my investment to Moncera. Moncera appears very good if you don’t mind the fact that it’s a single loan originator and that if it did ever go bust you’d have no one to fight your battles for you, whereas Mintos have at least proved that they’ll go to bat with their own solicitors to recover at least some of your money from loan originators who try to shirk their obligations.

All in all though, all my P2P investments shall be getting wound down during 2022 as I’ll need every penny that I can lay my hand upon to build my house. The goal of all this P2P investing was simply to preserve some value from inflation on a cash pile, and I never risked more than would earn about 1% per annum on the total cash amount. That cash pile mostly just got sunk into buying a site, the remainder will be paying professional fees to reach planning permission and then maybe if there is enough left it might just about pay for site clearing and groundworks. All the remainder will come from a mortgage, and as that won’t be enough either, several upcoming years of future income which means I’ll be saving absolutely nothing. So, to put it plainly, the days of there being any cash pile to lose value upon from inflation have already begun to end.

Once the P2P investments start to make up a fifth of all my remaining cash I’ll stop their automatic reinvestment and let them cash themselves out slowly. I’ve noticed that they buy back about one third of your original investment every six months just from churn or whatever, so that’s about one fifteenth of your total cash pile every six months. If I need it to go quicker I can always sell the loans on the secondary market, though that comes with a 0.9% exit fee (Mintos) or 0.5% exit fee (Moncera).

I may or may not do another post on P2P investing in the future. I hope you all enjoyed the series of posts and it gave you some new investment ideas.

#mintos #p2p-lending

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