Monthly update april26

April interest yield was even worse than March. Despite the emphasis on risk management in Mintos’ annual report, it seems to be primarily about the company itself rather than about investors. They are unable to change the situation so investors are completely at the mercy of creditters goodwill. And at Mintos they never act proactively, but always reactively. Within 3 diversified portfolios, in all three 50%+ of loans are on a daily base in pending or overdue status.Or dead money status. Return finally depends on contractual discipline not creditors mood. Mintos big time dilemma.

I pick three lending platforms, each of which is in the spotlight in April for its own reasons. On April 2, it was announced that repayments from Planet 42 for March would be made soon. Since one month we haven't heard anything. Monthly update is missing.

MFO onlinekaz, one of the most reliable lenders, has suddenly received a Mintos Risk downgrade from 6.6 to 5.1, a huge drop, due to ‘poorer financial performance’, they say. The result is a huge supply of these loans on the secondary market, but it is unclear what this means for the future.

And then there is the Nera Capital debacle, about  much has already been written here. I am very curious to see if the first tranche of principal payments, due to expire in mid-May, will be returned. A bit sceptic as they haven't renewed any of the maturing loans. So far, the interest is still being credited on repayment dates. The moment this is no longer the case, the loans will be in default. Incidentally, on the individual loan statements, all interest is listed as ‘paid’, in reality they haven’t paid any since 25^th of March. I now take photos of my Nera loan statements every week. I recommend this to everyone. With over16,000 loans offered on the secondary market at a loss of up to 25%, many investors preparing for another story then Mintos tells us.

Coming month I will scale back and bring all repayments home and on safer platforms,  until more is clear about Nera Capital.