P2P Investing update – May 2021

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

As you may remember from my previous update, my overall strategy is to gradually increase my portfolio size in P2P loans and to earn a minimum blended yield of 10% p.a. Both goals were met successfully in May.

As last month, my only significant investments are in Mintos and Income. I´m still hesitant to add other loan marketplaces to my portfolio, but will keep testing a few of the better ones. If I add any to my portfolio of material size, I will report on them here. 

Portfolio split by marketplace

I´m currently invested in two main marketplaces. My portfolio increased from the previous month (€54,229) to €57,773.96, and is divided between Mintos (23%) and Income marketplace (77%)

Portfolio split by LO 

I´ve been slowly withdrawing from Mintos, but still have €13,000 invested in older Iute Credit loans and ESTO loans. For me, both companies have good risk profiles and professional management, so I´m confident the investments will be repaid, and I´m not in a rush, or considering selling on the secondary market. Finko is the only company where I have funds in recovery anymore, but only €0.16, I´ll remove it from the listing next month regardless of repayment as its not material.

I´ve been switching my exposure from Mintos to Income, and while I consider all loans on Income to be equally safe investments I´ve mostly invested in the shorter term loans of Danabijak (58% of my P2P portfolio), as I like the cashflow and fast turnaround of these loans. I also find Indonesia a very interesting market with a lot of potential, and I´m following it closely. 

I´m also planning on increasing my investments in ClickCash (17% of my P2P portfolio), as they recently raised USD 1 million from institutional investors, and I think the company´s progress looks very promising.

I´ve also recently bought a few FIN Yritysrahoitus (3% of my P2P portfolio) loans, as the company´s EIF (European Investment Fund) co-operation gives them an edge over other SME lender offers in Finland.  I´m planning on increasing my exposure to FIN-Y also in the future. 

Income will be soon adding more loan originators, so looking forward to diversifying to these also.

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 11.85% on my investments p.a., which equals €544.08. I have also accrued €250.23 of interest on my investments which will move to the “interest” and “total profit” line in time. The portfolio split is normal and current loans are 78.1% at the moment. 

Income marketplace does not have pending payments as status, 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. Once loans hit the 16-30 day “bucket” the likelihood of them going all the way to 60 days late increases. The first buyback guarantees for loans 60 days late were also executed in May and cash was reinvested into new loans. 

Mintos Account overview 

I started investing on Mintos in 2019 and quickly grew my portfolio to over €100,000. I´ve since earned 10.59% on my investments p.a., which equals €12,046.49.
I´m following the % offers on Mintos, especially for Iute and Esto, but did not make new investments on Mintos in May.  

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