Mintos: P2P is ‘inflation-resistant asset’
Peer-to-peer lending is an “inflation-resistant asset” which investors should consider as inflation remains high across Europe and the UK.
According to European lending marketplace Mintos, P2P lending is one of a handful of options available to investors during times of high inflation.
The platform highlighted secured lending, commodities, real estate and inflation-protected securities as among the most attractive investment opportunities in the current economic climate.
“During times of high inflation, investors should consider allocating a portion of their portfolios to assets that tend to perform well under such conditions,” Mintos said in a blog post to investors.
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“Overall, investments in loans are typically less influenced by market drivers compared to publicly traded investments, resulting in a low correlation between the two.
“This means that investments in loans could serve as a buffer against market downturns.”
Mintos added that it is important to diversify currency exposure in investment portfolios to help mitigate against currency risk and protect the overall value of investments.
The platform also recommended that investors should monitor central bank policies to stay informed about any monetary policies which could hint at upcoming changes in the market.
By March 2023, UK inflation remained above 10 per cent, while inflation in the Eurozone dipped from 8.5 per cent in February to 6.9 per cent in March. This decrease was attributed to the fall in energy costs.
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Mintos noted that its investors earned an average interest rate of 12.6 per cent in April 2023, far outpacing the rate of inflation in the UK, EU and US, while the average annualised net return was 8.8 per cent.
In April, €102.8m (£90.41m) worth of Mintos Notes were funded, with investors earning interest of €4.9m.
This was largely driven by “a decrease in overdue payments and the corresponding funds being largely reinvested by the investors,” said Peteris Mikelsons, head of partnerships at Mintos.
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