KEY TAKEAWAYS
- Compared to August, the total average recoveries in each country have dipped slightly. However, the total average of all the countries combined is 42% only a nominal drop from the comparable 44% seen last month.
- We have seen some spots of improvement as recovery efforts come to fruition. Estonia, for example, has seen a one percent improvement in the Q3 figures for 2016. Meanwhile, Finland saw mild improvement in Q4, 2016 and 2014 total average performance gaining one percentage point in both areas. Finally, Slovakia saw a one percent increase in recoveries in Q1 of this year.
- Lacking improvement in recoveries may come from the possibility that recovery from these loans are nearing their maximum potential. For example, the total average figures for 2014, 2015, 2016 and 2017, so far are all comparable at 44%, 48%, 40% and 42% respectively.
PRINCIPAL RECOVERY RATES ACROSS MARKETS
Despite the drop in recovery rates in recent quarters the overall recoveries over the last several years is stable between 40% and 48%. Moreover, the transparency of the Bondora interface gives investors the tools necessary to make informed decisions about risk.
| Quarter | 2014 Q1 | 2014 Q2 | 2014 Q3 | 2014 Q4 | 2015 Q1 | 2015 Q2 | 2015 Q3 | 2015 Q4 | 2016 Q1 | 2016 Q2 | 2016 Q3 | 2016 Q4 | 2017 Q1 | 2017 Q2 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
 Estonia |
53% | 66% | 72% | 72% | 95% | 68% | 47% | 55% | 54% | 67% | 68% | 61% | 47% | 49% |
 Finland |
41% | 60% | 36% | 53% | 59% | 54% | 20% | 20% | 30% | 51% | 60% | 35% | 38% | 73% |
 Spain |
N/A | 17% | 18% | 20% | 29% | 25% | 26% | 30% | 24% | 51% | 28% | 12% | 18% | 37% |
 Slovakia |
N/A | N/A | 4% | 8% | 24% | 11% | 50% | 34% | 70% | 121% | 15% | 28% | 11% | ND |
You can find additional related information about the recovery process from these articles:
- How are recovery rates measured?
- Why don’t you calculate the recovery rate on the principal balance?
