These next few posts I’ll be talking quite a bit about retail investing in subprime lending, as I’ve been watching the whole area intently for two years now, and I finally felt confident enough to drop in some of my own money. I should stress that you shouldn’t risk any more of your money on this than you can afford to completely lose: the chances of losing all your money are higher than investing in a stock market index tracker fund (e. ...
In my last post on this topic, I explained how European retail investors can now invest in subprime debt via Mintos, an ‘Amazon Marketplace’ of loan financing, where you can slice and dice your micro-investments into many loans diversified across currencies, countries, types of loan and invidual loans. The loans on Mintos are supplied by loan originators: commercial, professional lenders who reduce their cost of financing subprime loans by getting Joe Soaps like you and me to hand over our cash bank balances. ...
This is the third part of my post series on retail investing in subprime debt via p2p lending, specifically the ‘Amazon Marketplace’ of European loan financing Mintos.
The first part gave some background and recent history of evolution in debt financial technology, and explained how the stuff which caused the 2009 financial collapse is now available to Joe Soaps like you and me, rather than just to traders inside large financial institutions such as investment banks. ...
I didn’t expect to make another post on my Mintos subprime lending investment so quickly, but I made a major investment change last month, and I thought it worth writing about.
If you remember that in this post, I was two thirds invested in a single loan originator, ExpressCredit, who mainly lend to the Botswanan middle classes. About half way through August I divested from ExpressCredit completely, and now my portfolio is distributed thusly: ...
A quick update on my Mintos investments – as predicted, my emergency divestment from ExpressCredit after their severe ratings fall on https://explorep2p.com/mintos-lender-ratings/ impacted earnings for a while until the replacement loans began to pay out. I was impacted for about two months, entirely avoidable had I sold my ExpressCredit loans more cleverly. But then monthly returns came back to somewhat normal-ish, albeit lower as nobody pays as well as ExpressCredit did: ...
So it’s been a fun, fun, fun week on the Big Daddy of online supermarkets in subprime debt for retail investors Mintos, upon which I did a series of detailed virtual diary posts May – August 2019. As I said upon this virtual diary last August (emphasis added):
I don’t want to beat the dead horse much further, but I do want to close this post reminding readers that this is a risky investment. ...
Last month I reported on the fun on the Big Daddy of online supermarkets in subprime debt for retail investors Mintos, upon which I did a series of detailed virtual diary posts May – August 2019. People were fleeing for the exit, offering huge haircuts of 15-25% to get their money out immediately. I decided to double down, and buy them out at those discounts.
This led to rather stonking returns for March: ...
In yesterday’s entry on my summer holiday in Tenerife, I mentioned that I was a little surprised to realise that I hadn’t posted a thing on #mintos since April, so here are my annualised monthly earnings since then:
MonthAnnualised return for each month, totalNon-earning capitalAnnualised return for earning capital March 202074.02%0%unaffected April 2020-55.45%0%unaffected May 202010.44%0%unaffected June 202012.10%0%unaffected July 20203.81%9.8%4.22% August 202010.36%9.7%11.47% September 202011.09%9.6%12.26% October 202010.86%9.5%12% As described in earlier posts, I morally refuse to invest in short term or payday loans, despite that those pay much better interest rates and have much lower risk, so the above returns are for long term, safest possible (>= A or >= 8 rating), subprime debt on Mintos. ...
Since my last post, Christmas came and Christmas went. We had supposed to have been in the United States to visit Megan’s family, but Covid made that not possible. In order to be able to safely visit my father on Christmas Day, we imposed upon ourselves self quarantine for the preceding five days – we didn’t go near anybody else. Thus we were able to stay the day with my father safely, and indeed none of us caught Covid, so it worked out well. ...
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. ...
Last post I mentioned that final grant of planning should have been issued by early May, however delays in the planning office meant that didn’t happen for a few more weeks than expected. However, it did eventually happen, and I am glad to report that as of this week, I am now the owner of the land upon which I got planning permission! I signed the final transfer deed this week, it’ll take a few months before the Land Registry is updated, and that is indeed a huge weight off the shoulders given how much price inflation building sites have seen recently, never mind their scarcity. ...
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(Last updated: 2022-05-28 02:01:06 +0000 UTC)