Extra revenue boost: cashback campaigns on Mintos

From time to time, some loan originators on Mintos offer cashback campaigns which are also advertised in the Mintos newsletter. For the loan originators this is a way to attract more investors, often particularly for their long term loans which might otherwise not be the top choice for investors due to the long payback period. Namely Lendo and Mogo had a few cashback campaigns back in 2017 and 2018 and offered up to 5% cashback for their longest running loans.

While this “normal” cashback is already a nice way to increase your return on investment there is a simple way to take this one step further: Continue reading “Extra revenue boost: cashback campaigns on Mintos”

Foreign currency investments on Mintos

Mintos Russian Rubles RUB

I admit it, I got tempted by the high interest rates that you can get for investments in Russian Rubles (currently as high as 18.7%) and exchanged 350 Euros via the Mintos currency exchange service. The rates they offer are actually really decent and reflect the daily market rates. A small service fee applies (in my case 2.45 EUR) which is listed under Service Fees on your dashboard.

More information on Mintos’ FX service here: Mintos FX

Investing in a foreign currency is of course not much different from Euro investments. On my dashboard and in my Auto Invest settings I got an additional tab to select my Russian Ruble investments. Continue reading “Foreign currency investments on Mintos”

Bondora risk management and profit boost

My Bondora Second Market Strategy

Bondora shows very good transparency and lets you download the entire loan dataset which is fantastic. This dataset includes all loans that have ever been up for investment and is the perfect playground for the number’s nerd.

Yes, statistics are a bit boring so let me do this work for you. What we want to do is to optimize our profits by reducing the risk of investing into loans that will eventually default. The loan dataset gives us the chance to look at the performance of thousands of loans over the past years, so let’s get to it. If you don’t care for the numbers and only want to see the conclusion, just jump to the end of the text.

Continue reading “Bondora risk management and profit boost”

Mintos portfolio diversification

Mintos Portfolio Diversification

In 2018, Mintos introduced a rating of the loan originators which takes profitability, equities, liabilities and other assessment factors into account. This should give investors the possibility to better judge which lenders they want to invest in. I think that’s a good start but since many new loan originators with basically no track record but surprisingly good ratings can be found on Mintos I started to look for more information on the internet. I found this very helpful website that offers an independent and regularly updated rating of Mintos’ loan originators: http://explorep2p.com/mintos-lender-ratings/

The guys from p2pexplore tend to give more weight to a good track record. Lenders which have been successfully active for a longer time tend to score a higher rating. I invest in all loan originators that score at least 65 points while trying to keep the effective interest rate somewhere between 11% and 12%. That’s already close to the maximum you can get on Mintos (at least for loans with Buyback Guarantee) and gives me a good feeling about the balance between diversification and profit. My maximum loan duration is 24 months but I guess that’s up to personal preference. When you set your Auto Invest strategy make sure to enable the diversification setting so Mintos will actually spread your funds over all selected loan originators!

Varks Am for short term loans

In addition, I invest into short term loans from Varks AM. They got a poor rating on p2pexplore but Varks has been a very profitable business in 2018 (5th most profitable credit organizations in Armenia in 2018, see here: http://www.armbanks.am/en/2018/11/15/117160/). These current Varks financials are not available on Mintos yet and probably have not been considered in the lender ratings on p2pexplore.

A nice advantage of loans from Varks are the high interest rates between 12% and 14% and the short loan duration of max. 30 days. This gives me a high monthly cash turnover from which I can withdraw funds relatively quickly if I need to. I just need to stop Auto Invest for some days to get a few hundred Euros of free funds to withdraw.

How not to miss out on new investments on Envestio

Looking at the strong fluctuation of available investment projects on Envestio it’s clear that you cannot diversify over many projects each month. Additionally, new investments become fully funded within a few hours, at least the ones with a short payback period and high interest rates. So, you’ll have to be quick to place your funds when a new project comes online which is informed via email.

The majority of investors on Envestio seems to be very active and the investor count is now at about 4400. In an average month like February with 1.5M Euros of investible volume, each investor can theoretically only place about 350 Euros. No wonder the projects are fully funded so quickly. Continue reading “How not to miss out on new investments on Envestio”