{"id":24690,"date":"2019-08-27T14:48:31","date_gmt":"2019-08-27T11:48:31","guid":{"rendered":"https:\/\/www.bondora.com\/blog\/?p=24690"},"modified":"2019-08-27T14:48:31","modified_gmt":"2019-08-27T11:48:31","slug":"bondora-portfolio-performance-in-july-economic-news","status":"publish","type":"post","link":"https:\/\/goandgrow.eu\/en\/blog\/bondora-portfolio-performance-in-july-economic-news\/","title":{"rendered":"July Portfolio Performance & Economic News"},"content":{"rendered":"\n

Bondora returns in July\nwere very similar to a month ago<\/a>. Most return categories were within 1-2%\nof previous rates, showing signs of stability across the Bondora platform.<\/p>\n\n\n\n

As always, performance\ncharts by country are broken down by number of loan issuances over the given\nperiod, with Orange representing <50 loans, Blue 51-200, and White >200.<\/p>\n\n\n\n

Yearly Performance<\/strong><\/h2>\n\n\n\n

Yearly returns for the\nmost recent three years were within 1% of rates from a month ago. This bodes\nextremely well for both 2018 and 2019 rates, which are both higher than their target\nrates. Estonian return rates for the current year actually rose slightly to\n20.4%.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Quarterly Performance<\/strong><\/h2>\n\n\n\n

Quarterly returns for the most recent 5 quarters are still higher than their target rates. As expected, the most recent quarter, Q1 2019, has the highest return rate of 29.8%. All quarters prior to 2018 experienced a small shift of less than 1% in their returns.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Finland<\/strong><\/h3>\n\n\n\n

C, D, and E rated loans\nout of Finland produced higher rates of return than last month. However, these\ncategories also have the lowest origination counts, making this change less\nimpactful. Returns on HR rated loans in Q1 2019 fell the most, down 2.3% to\n40.82%.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Estonia<\/strong><\/h3>\n\n\n\n

Estonian returns were\nhigher in 6 of the 7 rating categories for Q1 2019. The only category which was\nlower, AA rated loans, were only down slightly by 0.13% to 8.07%, coming\ndirectly in-line with their target rate for the quarter.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Spain<\/strong><\/h3>\n\n\n\n

All three Spanish loan\nrating categories fell in Q1 2019. While the biggest decline was in HR rated\nloans, down 2%, rates on these loans are still extremely high, coming in at\n61.6% on the month.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Economic News<\/strong><\/h2>\n\n\n\n

European markets are\nreeling, and in danger of falling into full blown recession<\/a>. Oil prices fell below $58 per barrel and\nstock markets across the region, led by the German DAX and French CAC, fell to\nsix-month lows.<\/p>\n\n\n\n

Estonian exports were\nnot as strong as hoped in the first half of the year, falling to a growth rate of 4%<\/a>. It is believed the slowdown was caused\nby a decrease in shale oil exports from the country. T\u00f5nu Mertsina, chief\neconomist at Swedbank, noted: “While the export growth of goods produced\nin Estonia weathered the weakened external demand rather well during the first\nfew months of the year, in June it decelerated sharply by one tenth\u201d. The\nimpact was largest in relation to a strong decline in the export of specific\nshale oil products.<\/p>\n\n\n\n

The Finnish labor market\ncame in to question due to statistics which pointed to a demographic with a declining education<\/a>. According to national statistics, 16% of\n20-29 year old Finns have a basic education level. Antti Kauhanen, the chief\nexecutive of the Research Institute of the Finnish Economy, sees this as a huge problem for the nation moving\nforward<\/a>.\n\u201cBoth expertise and education level are on the decline here…We have to put a\nstop to this development in order to ensure Finland can continue to grow and\nmaintain the welfare state also in the future.\u201d<\/p>\n\n\n\n

It wasn\u2019t so long ago\nthat Spain was in an economic crisis, and as a result, its bond yields were through\nthe roof, exceeding 7%. Fast forward to today and bond yields in Spain are closing in on 0%<\/a>. The yield on 10-year bonds in Spain fell\nto a 0.08%. Yet, the Spanish economy still has its issues, such as liabilities coming in at 98% of the\ncountry\u2019s output<\/a>.\nSpanish yields will be something to watch in the coming months.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bondora returns in July were very similar to a month ago. Most return categories were within 1-2% of previous rates, showing signs of stability across the Bondora platform. As always, performance charts by country are broken down by number of loan issuances over the given period, with Orange representing <50 loans, Blue 51-200, and White […]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[120],"tags":[],"class_list":["post-24690","post","type-post","status-publish","format-standard","hentry","category-stats-and-data"],"acf":[],"featured_image":null,"categories_names":["Stats & Data"],"category_name":"Stats & Data","_links":{"self":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts\/24690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/comments?post=24690"}],"version-history":[{"count":0,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts\/24690\/revisions"}],"wp:attachment":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/media?parent=24690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/categories?post=24690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/tags?post=24690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}