Rates are not as high as target, but sort of OK. I do have a lot of confidence in Zopa surviving, unlike a few other platforms, so not out yet.
Ok interesting that others still seem to be making money. I am actually losing money month after month pretty consistently now.
When you withdraw funds you are removing good loans and concentrating non-performing loans in your loan book. Hopefully recoveries will improve things a bit eventually. But returns are definitely not as good as the targets suggest, for people posting on here anyway.
I am a passive investor. Receiving monthly recovery repayments only. No more defaults.
Can you estimate the % of recoveries.
I was expecting 40% recovery if zopa does not sell bad debts to Cabot in the 10 year time frame.
Cabot paid a lump sum of around 10% for outstanding capital for those loans had less than 10% capital repaid. So all together, around 20% capital repayment and 5% interest repayment when bad debts are settled early.
My existing defaults have 26% capital repaid and 9% interest repaid after acquiring the loans for 2 years.
I am currently moving to holding while I decide whether to withdraw or not. I am irritated rather than appeased by the banners Zopa have started putting on my account pages telling me not to worry about a few defaults I had last month - this has been going on for 18 months now. Zopa exhort me to stick it out and my returns will normalise - well I have stuck it out and my returns have worsened. Zopa's latest update claims to have lent my money at 5.6% over the last 4 weeks but my XIRR for the last 12 months has whittled down to 3.05%, including the debt sale proceeds and including a residual 8% or so in Safeguarded Classic.
March was the worst month ever for me after more than 7 years on the platform. April has been much better though still a couple of days left - 4 or 5 defaults would wipe out all the interest - but I'm not seeing many encouraging signs. Withdraw or re-invest? Probably withdraw.
According to the public loan book data (updated on 31/01/2019), loans originated in 2018 have 0.5% arrears and 0.25% defaults. Average lending rate for arrears and defaults is 16.8%. It seems Zopa manages to improve actual return from 2018 lending although expected return is lower than 2016/17.
Loans originated in 2017 have the highest Revised default expectations.