Bondora portfolio re-balances after shift to ‘hands-off investing’
Bondora has seen the balance of its various investment products change dramatically in 2023, following the announcement it would close its portfolio manager and portfolio pro accounts in February.
The European peer-to-peer lender reported that loan originations had risen by 12.2 per cent to €19.2m (£17m) in February, the highest level recorded on the platform since 2019. Investments also peaked, with a 2023 high of €20.6m.
Digging into the figures in its latest update, the platform said Go & Grow, which is the product it is now focusing on, had received €18,652,183 in February, increasing by 12.6 per cent from €16,560,635.
Meanwhile, legacy product portfolio manager received €302,822, decreasing by 3.3 per cent from January’s €312,998 and portfolio pro, which has also been dropped, had a mammoth 700.5 per cent growth spurt of €1,694,883, compared to the previous €211,733.
Similarly, the API’s investment amount skyrocketed by 463.5 per cent to €10,655 from €1,891.
Read more: Strong start to year as Bondora welcomes 2,000+ new investors
The re-distribution of investments meant that Go & Grow’s share decreased to 90.3 per cent, and portfolio pro increased its share to 8.2 per cent.
Bondora’s update also revealed that the average interest rate dropped slightly in February to 19.5 per cent, from 19.8 per cent in January.
The average Spanish interest rate remained at 21.8 per cent. Estonia’s average interest rate decreased to 18.8 per cent. And in Finland, it declined by 0.1 per cent to 19.7 per cent. The new Dutch market average interest rate increased to 9.2 per cent.
February continued to see C-rated loans the most populated risk-rating category overall, but not in each market.
For example, Estonia’s C-rated share decreased again in February, from 9.9 per cent to 6.2 per cent. In Finland, C-rated loans decreased from 51.3 per cent to 31.5 per cent.
In Spain, D-rated loans still have the largest category, despite declining from six per cent to 4.2 per cent. C-rated loans only make up 0.6 per cent.
In the Netherlands, the lender only originates A-rated loans, taking a one per cent total share.
Read more: Bondora reopens Netherlands market