Even though returns on Bondora were slightly lower compared to the previous quarter, overall they’re still performing above targets. This decrease, especially in Finland, was mainly due to the strategic decision to decrease loan originations to preserve stability throughout the turbulent Q2.
As always, performance charts by country 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 Performance
After a rough patch in Q2, both the 2020 and 2019 yearly return rates still managed to come in well above their respective target rates. Due to lowering loan originations in an effort to maintain stability, there was an expected decrease in these rates across all three originating countries.
Quarterly Performance
Bondora continues its positive streak and the last seven quarters now all outperform their targets. Consistent with last month, 2019 Q2 remains the quarter with the highest return rate to date. It’s sitting at 23%—just 0.9% down from last month. It’s also the quarter with the most impressive lead to its target—achieving rates 8.1% higher than target.
Finland
Due to the suspension of loan originations, Finland showed the biggest decrease in returns. Only C and E-rated loans were issued, with the latter’s return rates performing the best at 14.1%. It also exceeded target, in spite of the lowered loan originations.
Estonia
Estonian loan originations continue to perform very well. All seven categories outperformed the previous quarter. Six categories outperformed their targets, with only AA rated loans coming in less than 1% under its target. The E-rated loan category still holds the lead as the category with the highest return rate (28.8%) for this quarter. 2019 Q3 still has the highest return rate to date—29.3% for F-rated loans.
Spain
C and D-rated loan categories have joined the high performing ranks as all 5 loan categories now perform well above their targets. This is especially impressive when compared to the rates in March. During 2020 Q1, HR-rated loans had the highest return rate, sitting at 34.4%—almost 15% above target.
Economic News
Over 100 different vaccination trials are currently underway across the globe—a landmark moment in the fight against the coronavirus. From the UK and India, to South Africa and the United States; countries around the world are sharing information and resources in an effort to create a vaccine against Covid-19. The UK is currently at the forefront of developing a vaccine.
Apart from potentially ending the severe public health threat, the vaccine trials also spark good news for the global economy. Asian equity markets saw constant climbs and European markets have been showing slow yet steady increases. Manufacturing in China and the US has improved and investors have regained trust as oil prices increased and gold prices improved.
Europe seems ready to embrace a greener financial future. From Portugal’s €5 billion hydrogen plant, to France’s €15 billion plan to ‘green’ their economy; there’s a definite change in the air as countries re-enter the economy with a clear green goal in mind. Portugal is planning various multi-billion euro projects, including a new solar-powered hydrogen plant to produce green energy. The plant is also anticipated to attract at least €5 billion in investment.
French President Emmanuel Macronsaid he’s ready to fast-track their move to a greener economy and would so with €15 billion’s worth of new funding. He’s also placing more emphasis on environment-friendly policymaking and would open a referendum to revise the constitution to include climate targets in it, if given the green light by parliament.
And locally, Estonian government has decided to lift the travel restrictions of 14 non EU-countries as the country opens up its borders to foreigners even further. The countries range from Canada and Australia, to Rwanda, Serbia, Japan and more. However, if travelers enter Estonia from a country that has an infection rate higher than 16 people per 100,000, in the 2 weeks prior to their arrival, they will be required to quarantine for 14 days.
