P2P Investing Update – June 2021

Here´s an update of my P2P investments portfolio for June. 

There has not been a change in my strategy since the last update. I´m still investing only in Mintos and Income, and have not added any other loan marketplaces to my portfolio. I have not made any new investments with Mintos, and my auto-invest strategies on Income marketplace have been mostly set to pick loans with a 12% p.a. yield, so my strategy of remaining over 10% p.a. in P2P is holding.

Its worth noting that there is constant pressure from LO´s to decreasethe interest rates paid to investors on marketplaces. This is the result of recent retail investment boom and many retail investors competing for the same loans. It also seems that many of the better LO´s have
managed to get  cheap institutional funding and paying higher interest rates to retail investors makes no sense to them anymore. Looking at whats happening to marketplace yields e.g. in the US, I would predict the trend of consistently lowering interest rates to continue on European marketplaces also. As such, I think my strategy of earning over 10% p.a. is currently feasible, but in the long run this may not be the case. Better enjoy these yields and fruits of my strategy while they last.

Portfolio split by marketplace

I´m currently invested in two marketplaces. My P2P portfolio decreased from the previous month (€57,773.96) to €56,210 and is divided between Mintos (15%) and Income marketplace (85%). The decrease is only temporary and related to cash movements from withdrawing from Mintos and transferring funds to Income.

Portfolio split by LO

I have continued withdrawing from Mintos and moving to Income. Iute and Esto (my two historical favourites) have interest rates well below 10%, and the weaker LOs on Mintos at the time of writing this, are only offering EUR rates of 12%. Risk & Reward is an interesting topic in P2P and is something worth exploring in a separate blog post in the near future.

This month I removed Finko from the split view as it’s still in recovery, and the sum 0.16€ is irrelevant, so no need to show it.

Danabijak´s share (67% vs 58% last month) of my portfolio increased again, as my auto-invest still has some room to grow, and when I transfer money to Income this is automatically deployed. Clickcash remained stable (16% vs 17% last month) as well as FIN-Y (2% vs 3% last month).

Income Account overview

I´ve been investing on Income marketplace since the end of January and have gradually increased the size of my investments. I´ve since earned 11.84% on my investments p.a., which equals €948.61. I have also accrued €424.44 of interest on my investments which will move to the “interest” and “total profit” line when the next payments from the LOs come.

Income marketplace does not have pending payments, so the 1-15 day late “bucket” I normally don’t pay too much attention to, as it is normal for borrowers to pay their loans a few days late. My portfolio split of 50.5% in current and 29.8% in 1-15 day late can therefore be considered normal and no cause for alarm.

As a handy additional feature, Income also introduced new filters to the “My Investments” section in June, and the ability to export the portfolio to Excel was also added.

Mintos Account overview

I started investing on Mintos in 2019 and quickly grew my portfolio to over €100,000. I´ve since earned 10.66% on my investments p.a., which equals €12,245.58. Unless something major changes, I´ll continue withdrawing funds in the coming months from Mintos.