{"id":67159,"date":"2021-07-27T11:00:00","date_gmt":"2021-07-27T08:00:00","guid":{"rendered":"https:\/\/www.bondora.com\/blog\/?p=67159"},"modified":"2021-07-27T11:00:00","modified_gmt":"2021-07-27T08:00:00","slug":"2021-return-rates-still-above-target","status":"publish","type":"post","link":"https:\/\/goandgrow.eu\/en\/blog\/2021-return-rates-still-above-target\/","title":{"rendered":"June: 2021 Return Rates Still Above Target"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">While return rates on Bondora originations fell in June <a href=\"https:\/\/www.goandgrow.eu\/blog\/2021-return-rates-zoom-past-targets\/\">compared to May<\/a>, returns over the most recent few years were still above their target rates.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/image-595.png\" alt=\"\" class=\"wp-image-67160\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-key-takeaways\">Key takeaways:<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>The return rate for 2021 Bondora originations remains above target<\/li><li>The first return numbers for Finnish originations in Q2 2021 are below their target rate<\/li><li>A and AA-rated Estonian originations returned for the first time in four quarters in Q2<\/li><li>Q1 2021 Estonian origination return rates grew across all five rating categories for the second month<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><em>As always, country-specific performance charts are broken down by the number of loan issuances over the given period, with Orange representing &lt; 50 loans, Blue 51-200, and White &gt; 200.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Yearly performance<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The return rate for 2021 originations came in at 15.1%, down 1.3% from the previous month, but is still well above the 9.9% target rate. Estonian originations continue to have a significantly higher rate of return (17.3%) than their Finnish counterparts (6.9%). Meanwhile, returns for 2020 originations were only 0.2% lower on the month, down to 17.0%.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/image-596.png\" alt=\"Yearly performance \u2013 June 2021\" class=\"wp-image-67166\" \/><figcaption><em>Yearly performance \u2013 June 2021<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Quarterly performance<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The first reported quarterly return rate for 2021 Q2 was 11.3%, compared to a 9.6% target rate. Interestingly, 2021 Q1 originations had a higher return rate, coming in at 17.0% in June compared to 16.4% in May. Both 2020 Q4 and Q3 return rates remained unchanged month-over-month, while the returns for the first two quarters of 2020 were down on the month, but only slightly.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/image-597.png\" alt=\"Quarterly performance \u2013 June 2021\" class=\"wp-image-67172\" \/><figcaption><em>Quarterly performance \u2013 June 2021<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Finland<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once again, in 2021 Q2, only D-rated loans were originated in Finland. However, returns for the most recent quarter of originations are already below their target rate, returning 5.4% against a target of 6.9%. This is contrary to the previous quarter\u2019s returns, which remain 1.5% above target.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/image-598.png\" alt=\"Finland portfolio performance \u2013 June 2021\" class=\"wp-image-67178\" \/><figcaption><em>Finland portfolio performance \u2013 June 2021<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Estonia<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There were a few changes to Estonian loan originations in June. Both A and AA-rated loans originated for the first time since Q2 2020. In fact, both categories originated more loans now than during that time. However, the return rates on these originations (-0.9% and 0.1% respectively) were well below their target rates. Meanwhile, 2021 Q1 originations saw their return rates grow across the board for the second consecutive month, a trend that is highly unusual but welcome for Bondora investors.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/image-599.png\" alt=\"Estonia portfolio performance \u2013 June 2021\" class=\"wp-image-67184\" \/><figcaption><em>Estonia portfolio performance \u2013 June 2021<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Spain<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">All five originating categories of Spanish loans for 2020 Q1 were slightly lower on the month. Return rates for both F and HR-rated loans remain above their target rates at 17.2% and 22.4% respectively. Going back several quarters, F and HR-rated loans have performed much better than C, D, and E-rated loans, as compared to their target rates.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/image-600.png\" alt=\"Spain portfolio performance \u2013 June 2021\" class=\"wp-image-67190\" \/><figcaption><em>Spain portfolio performance \u2013 June 2021<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-in-conclusion\">In conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Return rate originations are lower in June <a href=\"https:\/\/www.goandgrow.eu\/blog\/2021-return-rates-zoom-past-targets\/\">compared to May<\/a>. But despite this, return rates for the last couple of years are still outperforming their target rates. This indicates sustainable growth for the Bondora platform.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While return rates on Bondora originations fell in June compared to May, returns over the most recent few years were still above their target rates. Key takeaways: The return rate for 2021 Bondora originations remains above target The first return numbers for Finnish originations in Q2 2021 are below their target rate A and AA-rated [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":67160,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[120],"tags":[103,106],"class_list":["post-67159","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stats-and-data","tag-english","tag-marketpricing"],"acf":[],"featured_image":null,"categories_names":["Stats &amp; Data"],"category_name":"Stats &amp; Data","_links":{"self":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts\/67159","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=67159"}],"version-history":[{"count":0,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts\/67159\/revisions"}],"wp:attachment":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/media?parent=67159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/categories?post=67159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/tags?post=67159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}