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Yield / Interest rate calculation

Nik S
  • Edited

Dear investors, 

I would like to open a debate about the calculation of interest on loans. Mintos suggests this formula: amount * number of days * (interest rate/360). However, this simple method often distorts the final interest that I received/will receive. 

How do you calculate future cash flows, interest and interest rates?

For cash flows, I have been using Excel, but the problem is that you have to manually copy the payment schedule and remove the currency sign. Perhaps Mintos should think about automatic Excel generation for this one too. 

Please share your opinions, thoughts and findings. Thank you!

1

Comments

2 comments

Date Votes
  • Ricardo Jorge Matos Marques
    • Edited

    I invested on a short term loan (LVX0000982J8)
    Interest rate: 14.0%
    Listing date: 08.07.2023
    Expected maturity date: 06.08.2023
    Purchase date: 10.07.2023
    Finished: 06.10.2023
    Invested amount: € 50.00
    Received payments: € 50.43

    I don't understand why the received payments were just 50.43

    I cannot get anywhere close to that value unless the loan was in fact payed on the maturity date, which was not the case.

    Can anyone at @mintos clarify?

    Thanks

    1
  • Mayer Nicolas

    Notes with indicated interest rate are unreliable due to buyback. They don't adjust accordingly.

    The problem is that if a portion of the Notes are bought back early, the Notes overall won't provide the displayed return on the notes.

    In my opinion it would be necessery to have enough fund in a strategy to invest only in ID Finance, Mintos would provide with quarterly report, the annualised return on the 3 month period.

    1

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