Bondster new (overnight accountish) loan product and tuned autoinvest

I mentioned Bondster already sometimes on this blog and it has its reasons: 1) The platform is innovative and offers new products 2) Behind Bondster there are seasoned loan originators, which is very important to me 3) Regional diversification, as the marketplace operates out of Czech Republic. This means even if there is a new regulation in the Baltics concerning p2p investments, it does not matter. Just think about it, what happens if p2p is forbidden in the Baltics. Worst case, I know, but in my opionin this shows exactly why diversification is good sometimes.

13% loans of a Kazakh pawn shop: Tezlombard

Tezlombard offers a kind of pawn shop loans on Bondster. Most of the loans are backed by physical gold or jewellery, but the ltv is quite high. The loans are perpetual, theoretically can run for years and only serve interest. As an investor you get a cancellation window of 3 to 4 days per every 30 days, in which you can get out of the loan. Without any costs incurring, you just need to know when to do it. If you miss the opportunity, the next window will be there in 30 days latest. So not a real overnight money account like with Bondora, but for this you get the doubled yield. On the negative side you are less liquide and the risks are higher. As I already said the loans yield 13 percent and can get bought backed after 60 days in delay for not serving interest installements. In this case you get your capital plus all accrued interest.

Autoinvest got updated and enhanced

The autoinvest feature was enhanced with some more settings. I, for my part, run with the old settings. But a very cool feature added are the Diversification settings. Once activated these try to balance the investments with all selected loan originators. This is really helpful in my opinion. I am testing this feature currently, as I want to know what happens if there are no loans of one originator. Stays this share in cash? Hopefully, and for sure not. There are some questions popping up 😉

Bondster Autoinvest, really nice new features

At the end / Cashback

Bondster really gets better and better. My delayed loans quota is in line with other marketplaces and is different depending on the originator. Of course my observation period is a bit too short to draw conclusions, but this is about to change. Curently I am really happy with the platform. It seems the marketplace is an insider’s tip, but also this is about to change, I am sure. Bondster can be easily compared with the Baltics peers.

New investors still get 1% Cashback for the first 3 months. If you want to participate in it, you need to put 4985 in to the promocode field at registration. Here you go to the registry. You will get the cashback directly credited on to your Bondster account on every fith of the month. But this happens only after you already are invested for at least 30 days. So the first credit might take a bit longer

Promocode with Bondster for one percent cashback for three months

Marketplaces with currently the highest interest rates

Some days ago a reader asked me where at the moment he could get the highest interest rates. But with moderate risk, of course. So what is moderate risk? I don’t really know, I guess this is something depending on the indivual assesing risk. If I look at 10 year German Government Bonds, I see a return of minus 0.2% annually. So if you invest 1000 Euro now, you get 980 Euros back in 10 years, nice deal 😉 This is the price for absolute security. Well theoretically, even Government can default. But why did I use the 10 year yield to maturity as a gauge? In finance, these returns are used in most financial models and are referred to as the risk free rate.

Ok, that was just introductional, but I think we needed this. If I compare this minus 0.2 percent to the highest yielders of 22 percent, it is no rocket science to see that this is absolute high risk territory. An absurd credit spread of 22.2 percent. If I use this comparison, I would say moderate risk is at the lower band of this bandwith, so around 2 percent or so, but for sure not in the p2p sector. As I said before, moderate risk is different to any investor and derives from two main factors: 1) risk capacity, this is the answer to the question if you get in trouble if your invested money is lost. 2) Risk tolerance is the question after point 1 is ok. In this case you might have the capacity to absorb the loss financially, but psychologically. What is it worth if such investments keeps you awake at night because you fear to lose it? No point in investing, if you cannot handle it. But no, off to the overview.

Crowdestor leads the pack currently

There already were some projects on Crowdestor which yielded 21 percent with a duration of plus minus one year. Currently there is a project, see bottom, in funding and at the time of writing 82 percent filled. I am sure there will come some more projects the next few days. With Crowdestor you better have cash ready at the marketplace to be able to hit the invest button before the projects are already filled.

Example project at Crowdestor

Kuetzal – the youngest

Kuetzal as well has its share of projects yielding 21 percent. These are filled slowly, but it does not matter to investors, as the interest calculation starts immediately after investing. Here you can read up on Kuetzal.

Envestio – the quickest

With Envestio the projects are filled up within minutes or up to 3 hours, if it is a bigger amount funding. Even if Envestio currently pays only around 17 to 18 percent, the projects are funded within no time. Before you invest, you might want to read my older posts (here, here and here). You need to have funds on the marketplace before a new projects turns up, otherwise you will be late.

And there is Bulkestate

At first I did not want to include Bulkestate in this list, but with 17 percent interest rates it somehow matches. Smaller projects are filled within minutes. Bigger projects can take 3 weeks, but will get financed in the end by some big hitters or so. I really like their projects and approach to not add too many projects, but quality. They are building a solid track record currently of repaid projects.

And we are at the end….

I really have no clue why projects at Envestio are filled quickest (is it the cashback?). I doubt it is because of the minimal investment ticket of 1 Euro. Does it really matter if the minimal investment is 1, 10, 50 or 100 Euro? I doubt that. To summarise, the most trustworthy platform of these 4 are Bulkestate and Crowdestor. This does not mean that they are less risky, also they will face delays and defaults, that is sure.

Currently there is no project in delay according to the marketplaces. Or do you have different information?