0.39% return in November 2020


Figure 1 Performance of Note price and Long-Term Return Target

Monthly comments

Interest payments in November was somewhat lower than October.

Current loans represented 75.7% of the value of the portfolio at the end of November just under 1%-point lower than in October. At the same time loans 60+ days late increased 0.6%-point to 4.10% of the value of the portfolio.

During November, an agreement with one Polish loan originator has been reached on how to repay outstanding amounts. Towards the end of Q1 2021 the loan originator should restart payments.

However, we are not changing our cautious approach and have taken an additional provision of 0.15% on this loan originator. Only when actual payments are registered on our account, will we consider to start reversing our provisions.

Quantrom P2P Lending has now taken a provision of 50% of the outstanding principal amount related to the two loan originators, which have stopped payments.

Without any changes in circumstance we do not foresee any significant provisions in the coming months.

The return for the month of November 2020 was 0.39%.

Since inception, Quantrom P2P Lending has given a return of 32.43% and outperformed the long-term return target by 6.71%-points.

Portfolio

The portfolio at the end of November 2020 consisted of more than 8,500 loans. The weighted average interest rate on the portfolio is 10.99% with an average weighted maturity of 29.5 months.

The main exposure in value is still towards car loans which represent 61% of the value of the portfolio at the end of the month.

Exposure towards property loans is at 23% of the value of the portfolio. At the end of October, personal loans represented 15%, while business loans were 1% of the value of the portfolio.

Figures 2-12 provide more details on the composition of the loan portfolio.

Figure 2

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Quantrom Limited, Limerick

December 2020

About the Author

Gustav Jensen

Gustav is the managing director of Quantrom Limited and is living in near Brussels.

Economist from University of Copenhagen mainly working in finance and banking.