Back in December 2015 I analyzed some 2014 loans (inspired by Bondora’s own similar earlier analysis) and concluded that the Bondora Rating applied on those loans had significantly misjudged the expected loss for those loans. According to Bondora my article was full of mistakes and inaccuracies. Also, turns out there are sides in data analysis and […]
IN SHORT: The percentage of actual 7+ days overdue CASES that end up defaulting, is roughly around 23%. This is the number you actually should be looking at when figuring out the costs. With current deal structure, risk averse investors who prefer lower risk / higher quality loans, are practically guaranteed to lose money with this deal. […]
NB! Bondora has released some additional details in regards to the process. Last updated 26.03.2016 8 AM. Relevant sections have been marked accordingly. Since the information available is far from complete, any comments on possible misunderstandings or mistakes in the post below are more than welcome and I’ll gladly improve on the analysis accordingly. IN SHORT […]
Important! If you find some mistake in the analysis or logic here, let me know in the comments below so I can deal with it. CONSTRUCTIVE criticism and feedback is welcome and encouraged. Key takeaways The logic used by Bondora to claim that Bondora Rating has outperformed expectations, is invalid and misleading. The compared XIRR and Expected Return […]
There have been a large amount of changes at Bondora over time and I bet no-one really remembers all of them and when they happened. Of course, knowing most of them won’t give you any actionable value (although might be cool to know anyway), but some of it is relevant when doing your analyses on […]