P2P Money Blog

I was pleasantly surprised to see that YES-secure have now published their loan default data for 2010 and 2011.  I've been busy going through the maths and have double checked the figures, and I can publish the actual lifetime default rates.  This information will be uploaded to the P2P Money comparison of peer-lenders later.

• The A+ market had £112,860 lent with a total of £25,407.94 of defaults.  The lifetime default rate would be 22.51% against a target of 3.0%.
• The A market had £56,930 lent with a total of £13,119.91 of defaults.  The lifetime default rate would be 23.05% against a target of 4.0%.
• The B market had £106,940 lent with a total of £10,913.42 of defaults.  The lifetime default rate would be 10.21% against a target of 6.0%.
• The C market had £81,840 lent with a total of £3,763.59 of defaults.  The lifetime default rate would be 4.6% against a target of 8.0%.
• The D market had £67,480 lent with a total of £3,895.19 of defaults.  The lifetime default rate would be 5.77% against a target of 12.0%.
• The E market had £41,170 lent with no defaults.  The lifetime default rate would be 0.00% against a target of 25.0%.

There seems to be quite a disparity with the default rates, with the lower risk markets experiencing large defaults, and the higher risk markets experiencing fewer or no defaults, although less money was lent.  Again there must be a word of caution with stating lifetime default rates so early on in a loan term as some loans won't be mature enough to have defaulted yet.

The overall bad debt would be 12.22% against a predicted weighted average of 7.96%.