Same with me - my highest rated loan (A3) is the only one in arrears (everything else is fine for me as of writing)
Printable View
The effects of Job losses, business failures etc. from COVID-19 are not likely dependant on loan rate (i.e. likely ability to repay) - so it's quite possible that effects will be felt across the full rate range? e.g. if a well established small business that relied on an expected 'guaranteed' tourism based turnover, or someone who worked for same, received an A rated loan 6 months ago, I doubt too many would have raised an eyebrow?
At this point I'm not seeing the loses that I thought might be seen - still running a 15.06% RAR, but that may be due to my loan selection. My net-charge offs are not excessive at this stage.
How are others RAR and charge offs going?
RAR 10.75% (hasn't moved much in the last 6 months)
(my own XIRR is 11.56%)
244 loans
Hardship 18 (A 1, B 1, C 3, D 6, E 7, F 0), whereas my portfolio is exactly centrered on Cs, then Bs and Ds, then As and Es with very few Fs. So I notice hardships are more heavily weighed towards the riskier loans in my case.
Just one charge off since end of March. (I only have ever had 3 charge offs incidentally: 1 B, 1 C and 1 E.)
So in my case, it's the hardships: I had one before COVID-19 hit, and 17 more in the past 3 months. I don't expect much from them, not too sure about Harmoney's willingness to truly help and see them through. I suspect they'll slowly morph into charge-offs.
This is what my breakdown looks like:
Grade Active Loans Hardship Loans B 14% 12% C 33% 29% D 34% 42% E 17% 17%
Pretty much across the board for me - heaviest in the D grades only a little less in the lower grades.
52 in hardship out of 723 so 7% in hardship.
Arrears 3570.3 3.36% 104 Current 93106.71 87.59% 2329 Hardship 9320.15 8.77% 193 Protect Waiver 305.16 0.29% 8 Total Outstanding 106302.32 2634 40.3577524677297
By dollar value. Out interest - seems to be a move toward hardship from arrears as predict by forum. Seems to be more movement in current(people paying back/refinancing ) than towards other categories, no real change to the late categories - i dont follow stats before covid (bc). July/august will be interesting as things begin to bite economy wise.
Whats everybody else doing with their money ? are we all of to squirrel ? shares - or just sitting on it ?
If you are over 65 think about your kiwisaver potential.