The relationship between subprime lending and peer-to-peer lending platforms like Mintos is that investors can choose from a wide range of debt types, including ultra-risky options such as payday loans to Russians in Rubles, which currently pays 20%. This allows for diversification and potentially higher returns, but also increases the risk of loss. ...
The platform risk is the main reason I avoided investing any money in peer to peer lending platforms at all until now: I don’t trust the security of 98% of web platforms. They are generally written in a rush by inexperienced, underpaid developers, insufficiently tested, and other people’s money is not given sufficient care of duty. ...
The third part of this post series describes how I have personally configured my own investments on Mintos, given my extremely conservative preferences to neither cause harm to others, nor to take any risk of losing any money ever. My investments are set up with the Auto Investment bot, which is configured to invest in loans with a minimum interest rate of 15% and a term no less than two months. The bot also excludes loan originators with weak balance sheets or those not rated A-B by Mintos. ...
The Mintos subprime lending investment portfolio has been significantly altered, with a major change made last month. The previous two-thirds investment in ExpressCredit was completely divested, and the portfolio is now split between Capital Finance and ID Finance. This change was made after ExpressCredit’s rating dropped by 31 points, and political turmoil in Botswana raised concerns. ...
The emergency divestment from ExpressCredit was made, impacting earnings for a while. Replacement loans were secured, resulting in monthly returns returning to somewhat normal levels after two months. Annualised returns remained healthy, ranging from 10.38% to 15.22%. Tax implications were considered, with half of Mintos income being lost due to tax, and the remaining amount not entirely covering loss to inflation of cash reserves. ...
The discount rate on the Mintos secondary market has been increasing since Wednesday, climbing from 8% to 25%. This is because investors are selling their loans at a discount to get out quickly, indicating a run on Mintos. People are also selling dud loans with a 18% discount, which could result in a >700% return if the loan originators pay out on the buyback guarantee. ...
The strategy was flipped on its head, and a new approach was taken by buying second-hand collateralised loans from the safest loan originators whose remaining term is less than a month, with yields exceeding 11%. This change was made to capitalise on borrowers’ reluctance to have their cars repossessed at the final payment of the loan. ...
The loan originator Capital Service went bust in July, resulting in a loss of 10% of the investment. This was due to the Polish government’s decision to give loan repayment holidays to everyone, which led to most borrowers taking advantage of this and not paying their installments. The non-performing loans immediately started affecting monthly returns. ...
Christmas came and went, with many people in Ireland partying like it was 1999, resulting in a twenty-fold increase in deaths due to Covid. The death rate continued to rise, with around ten percent of total excess deaths in Ireland occurring last week. Meanwhile, the writer’s family managed to stay safe by self-quarantining for five days before visiting their father on Christmas Day. ...
The Mintos annualised return for each month was calculated to be 11.29% in December 2020, with non-earning capital being invested at 11.4%. Moncera’s annualised return was also tracked, showing a significant increase in returns compared to Mintos. This data was compiled and presented in a table format for easy reference. ...
The final grant of planning was eventually issued after delays in the planning office, allowing the owner to sign the transfer deed and update the Land Registry within a few months. This development is a huge weight off the shoulders, considering the recent price inflation and scarcity of building sites. A countdown has begun, with deadlines for stamp duty rebate and government subsidy looming ahead. ...
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(Last updated: 2022-05-28 02:01:06 +0000 UTC)