European P2P returns hit 10.6 per cent
Average returns on European peer-to-peer loans increased by 0.2 per cent to reach 10.6 per cent in the third quarter of this year, new data has shown.
According to a new analysis from Croatia-based P2P lending platform Robocash, P2P has delivered stable returns to investors throughout the year, while other asset classes have fallen into negative territory. However, the analysts noted that traditional investments are now starting to show initial signs of recovery.
“As for P2P investments, the average return of continental European platforms increased by 0.2 per cent in [the third quarter] to reach 10.6 per cent,” said the analysts.
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“With such a trend the P2P instrument looks like a good alternative for bonds and deposits in terms of yield.
“The other part of the financial market is unlikely to bring stable returns over a six-month to one-year horizon.”
The analysts added that commodities and stocks are beginning to come out of the “doldrums”, with the annual growth rates for stocks increasing from -16.81 per cent in the second quarter, to 0.53 per cent in the third quarter of this year.
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The global real estate market is also showing “solid growth”, said the analysts, although the trend estimate of annual yields is currently at -16.2 per cent.
Cryptocurrency has seen the widest losses, the analysis found, as Robocash predicted an incoming bull cycle.
“Crypto is in the stage of waiting for the so-called halving, which is to occur in 2024, and the approval of the U.S. SEC to issue a number of spot ETF funds,” said the analysts.
“These two factors point to the imminent start of a ‘bull cycle’ in the crypto market.”
The analysis also found that the bond and deposit markets have reached their historical maximum.
“However, while deposits remain an attractive risk-free instrument, in the case of the debt market the level of risk is quite high and real yields are still negative,” the analysts added.
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