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Low amount of available credits

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20 comments

  • Jeffrey Waldock

    Same here. For a week the repayments have been flowing in, but reinvestment is sluggish, if at all. I was wondering whether I might have cocked up the settings, but haven't changed anything in the past two weeks. Appreciate any feedback.

    Best regards,

    Jeff

     

    0
  • Y

    I have the same issue. There was quite some money not invested laying in my account. I changed some setting for now but I want to return to the old settings soon.

    0
  • Angus

    Loan availability is seasonal and you will find that Mid Feb to end April there is usually a dip in interest rates due to low supply. The inverse is true from Sept to Dec as demand increases pre christmas.

    Something to keep in mind when investing - "Seasonal variations"

    5
  • GIORGIO FIGHERA

    I noticed the same in my strategies. Then I realized my diversification settings were not ideal. I had to tweak them a bit to improve diversification and "unlock" some LO 

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  • Dorin

    The number of loans on Mintos has significantly decreased over the past 4-5 weeks, while interest rates have decreased by 2-3 points. At the same time, there are no such changes on the other platform.

    1
  • Daniela

    Same here. I had to spent around 30 min - 1 hour a day to manually invest my money that my auto invest would not process. Eventually I switched to a Mintos strategy, which works fine. I'd rather work with my own auto invest settings, though.
    I was wondering if Mintos somehow disadvantages auto invest to push their own strategies?

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  • Jeffrey Waldock

    I reduced the lower level interest rate slightly from 10.1 to 9.4 percent. The system is beginning to reinvest. It seems that it is a matter of decreasing interest rates. 

     

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  • Daniela

    I went down to 6% with a term of 0-72 months. This only helped temporarily, after 1-2 days my account started to fill up again.

    When investing manually I found loans that met my AI criteria. Nevertheless, the AI did not automatically invest in these loans.

    0
  • Dorin

    Last 15-20 days my AutoInvests mostly does not invest. Even if I reduced twice the interest rate by 2-3 points. A bigest part of investments must be done manually, it take time . More spended time, less money to earn ... I hope this will change soon in better direction

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  • MIGUEL DA COSTA SIMÕES JOÃO

    Using Mintos Diversified Strategy for 3 months, and it's always nearly 100% invested. The low amount of available credits, could it be only for other autoinvest strategies?

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  • Daniela

    Yes, the problem is when using AI.

    0
  • Angus

    Daniela,

    In my experience:

    1, Auto Invest will not invest in every loan issued in the range of parameters you stipulate. 

    EG - If there are 100 loans matching your criteria it will maybe invest in 50% of them. 

    2, The order of precedence for investments is:

    - Mintos strategies

    - Auto Invest

    - Primary market

     

    Cheers,

     

    Angus

    1
  • Daniela

    I believe you are right!
    It seems like Mintos is saving up credits to be able to safely invest all the funds from the Mintos strategies?

    @... I would be interested in your input on this.

    -1
  • Angus

    Hi Daniela,

    Mintos has clearly stated in the past that Auto Invest strategies are attended to before Manual investments. 

    Its not about "saving up credits" for the Mintos strategies. Its more of a "pre order" function and it is logical.

    The "problem" with interest rates at the moment is simply Supply and demand:

    - The volume of loans issued in these months by the LOs is significantly less than in the pre christmas months.

    This year is also further complicated by:

    - few people investing in summer holidays. 

    - other "cheaper" sources of credit available for the LO´s 

    If we look back to May 2020 the situation was the other way around:

    - Few investors willing to invest (scaared of Covid impact) meant very high interest rates. EG: 15% Everest, 21% Cash Credit.... 

    Supply and demand is all that is affecting the rates available. But if you want to be ahead of the manual investors you have to auto invest.... That has been previously stated by Mintos 

    1
  • Daniela

    I want to AI!
    I only invested manually because my AI would not invest into new loans, although they meet my AI criteria. I did not have that problem a couple of months ago.
    I understand that there might be less loans available on the market. But I do not understand why my AI won't invest when I can find suitable loans manually.

    I'm currently using the Mintos Strategy, because that is the only way I can get my money fully invested.

    I would rather use my AI, but having to manually invest ~1k every couple of days is too time consuming.

    0
  • Angus

     I only invested manually because my AI would not invest into new loans, although they meet my AI criteria.

    That is strange... if you can see the loans on the primary / secondary market with the exact parameters (eg loan structure type, LTV etc etc Min / max invest qty) then your AI should pick them up. Send a mail to Mintos with screenshots of the loans found and your AI parameters.

    My "turnover" is roughly 500€ a day and via 50+ AI strategies I am fully invested most days (>12% Interest, very diversified portfolio, primary & secondary strategies).

    As an aside - The last week or so I´ve seen better value in currencies other than the € (strong € at the moment so I am betting that the fporeign currencies will strengthen over the loan term, 6 mths) so maybe I´m not seeing the "lack of loans" others are experiencing. 

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  • Daniela

    You have 50+ AI strategies?
    I only had one covering all interest rates and time periods I wanted to invest in.

    Maybe having more specified AI's is the better option.

    Screenshots are a good idea, I might send some to Mintos support on the weekend.

    Thanks!

    0
  • Daneel

    Does anyone have experience on when (seasonally speaking) we can expect fresh loans?

    0
  • Angus

    Hi Daneel,

    Permit me an extended explanation of my earlier comment, if it is too basic please excuse me, I do so for the non English first language investors.

    Traditionally: From mid January to Mid April there were low rates as few loans were issued. Then from end of April loan issuance went up as people took credit for summer holidays this then fed into after summer as people started christmas shopping / overspent in the summer and this lasted until January. (normal demand vs high supply = higher rates and loan availability)

    NOTE: 2020 was not like this due to very limited investor confidence and many investors stopping to invest, therefore high interest rates in 04/05 of 2020. (limited demand for medium supply)

    2021: This year is unpredictable due to

    - the coronavirus as many people cant book their summer travel / holidays so less need for credit. 

    - 5 LO´s have left the market therefore restricting supply side. 

    - Mintos is a "growing" market therefore the addition of 2 or 3 new LO´s can chaange the supply situation.

    - Looking at Mintos statistics page From End Feb to End Mar there was 4M€ in additional loans on the market vs Investor growth of 250 new daily investors @ av 2500€..... Demand is above supply

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  • Daneel

    Hi Angus,

    thanks for the thorough explanation. I really hope fresh loans enter the market soon. I have around 1k currently available that can't be invested. Additionally there are around 12k in the 31-60 days tranche, that will be available soon (hopefully). So my demand is way higher than the supply. I'm looking forward to the second half of 2021.

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