2021 Return Rates Zoom Past Targets

Investment returns on Bondora originations showed signs of positive growth in May. The return rate for 2021 was higher this month than in April. This is a great sign for investors as we move into the summer months.

2021 return rates zoom past targets.
2021 return rates zoom past targets.

As always, country-specific performance charts are broken down by the number of loan issuances over the given period, with Orange representing < 50 loans, Blue 51-200, and White > 200.

Yearly return rate performance

The yearly return rate for 2021 came in at 16.4%. This is 1.3% higher than in April. This growth spurt was led by Estonian originations, which returned 18.1% compared to 16.7% last month. Finnish returns also increased, totaling 7.7% compared to the lower 6.7% in April.

Meanwhile, even though the 2020 return rate fell, it still came in at 17.2%, which is 4.8% higher than its target rate. Estonian originations proved to be the strongest here and fell only 0.1% to 21.0% in total.

Yearly performance - May 2021
Yearly performance – May 2021

Quarterly return rate performance

The last two quarters showed a boost in returns for investors. 2021 Q1 returns came in at 16.4% compared to 15.1% last month, while 2020 Q4 returns totaled 21.1% in May, up 0.1% from the month prior. Still, all quarterly return rates for 2020 remain above their target rates.

Quarterly performance - May 2021
Quarterly performance – May 2021


The most recent quarter’s D-rated originations saw their returns jump above their target rate, ending the month at 7.7%, a full 1.0% month-over-month gain. For 2020 Q4, both C-rated (7.7%) and D-rated (8.3%) originations were higher than last month as well.

Finland portfolio performance - May 2021
Finland portfolio performance – May 2021


All 5 rating categories of Estonian originations in 2021 Q1 were not only higher than their target rate but grew month-over-month compared to April:

2020 Q4 returns were also quite positive, with B- and C-rated loans higher on the month.

Estonia portfolio performance - May 2021
Estonia portfolio performance – May 2021


For 2020 Q1 — the most recent quarter where Spanish loans were originated — return rates predictably fell by about 1% across all five rating categories. However, both F- and HR-rated originations still returned higher than their target rate, coming in at 18.1% and 23.5%, respectively. The same trend can be seen in the previous few quarters. One thing that stands out is that D-rated originations from 2019 Q3 turned in a negative return rate, at -0.5% in May.

Spain portfolio performance - May 2021
Spain portfolio performance – May 2021

Key takeaways

  • While return rates generally trend downward over time, May ended with a return rate 1.3% higher than in April
  • The two most recent quarters, 2021 Q1 and 2020 Q4 saw an increase in return rates
  • Estonian originations led the charge, higher in all five originating categories and up a cumulative 1.4% month-over-month
  • Lower-rated Spanish originations (F and HR-Rated) are still returning above their target rates
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