Again more then one month has passed since my last post on Omaraha. The platform keeps me busy, as it seems always something new is happening. Before I forget, I did not receive SIA Best Lizings financials yet, so if I don’t get them during the next 2 weeks, I will buy them for 9 Euro online myself.
2 weeks without an Estonian loan
Maybe I popularised Omaraha too much through this blog and sent them many new investors, and as a result I don’t seem to get any Estonian loans 😉 Ok, maybe this is only half of the story behind this situation. The main reason is that seemingly that there are just not enough Estonian loans, there were fewer added to the platform as usual. Further they cut the long term loans at the moment. I now try to get some by setting my autoinvests interest rate a little lower, or give a little more bonus away.
Finnish loans to appear shortly
For some days now Finzo (operator of Omaraha) offers loans in Finnland. The first batch of finnish loans shall appear Monday, 3rd July on Omaraha. Setting an autoinvest profile is already possible. Let’s be curious to see how many loans, at which rates and quality there will be. Often I expressed my concerns with platform’s expansion into foreign territory. One can see what happened with the Slovakian loans, there were and still are problems. In my experience finnish borrowers are relatively good payers, but inferior to Estonians. I have to be carefull with such universal statements, as the borrowers payment morale largely depends on which clientel the platforms are focussing. I will test and start with a small amount with finnish loans.
A look at official stats
Here you can get an overview of the actual loanbook. If we take a general look at it, it seems, that 2017’s default rate is tiny. We will get a clear picture in the coming months on this:
You can play around with the settings of the stats page and can for example see that low rated Slovakian loans performed badly and resulted in a loss (pooled view). It seems as my assessment to exclude these loans in future was indeed correct. What surprises me the most is that overall Slovakian loans they seem to generate nice returns. I can add to this observations my own experience where scores from 900 to 1000 performed better, but I guess I will also have to deal with defaults there. To be fair, I have to mention that my loan universe is to small to gain stastitically relevant or significant results from it.
You see, you have to face the platform to being able to invest there. This is a welcomed variety to investing in platforms with autoinvest and buyback only. If there are questions, do not hesitate to post.