European lender Bondora notes that Go & Grow is their investors’ favorite or most preferred way to invest in their wealth.
Bondora writes in a blog post that they have more than 158,000 “satisfied” Go & Grow investors. And there’s a solid reason why it’s so popular: consumers are interested in building their wealth, and they don’t want to waste a lot of time figuring out “complicated” investment funds. Go & Grow is the ideal solution, according to the team at Bondora.
Since they think investors need do their homework/research, Bondora claims to do its best by offering you with insightful information about what makes Go & Grow successful: “its portfolio distribution.”
Each quarter, the team examines the latest and most pertinent information. This year, Bondora has also taken a detailed look at Go & Grow’s Q4 portfolio.
Credit ratings
As noted in the update from Bondora:
“Diversification is at the core of our business, and Go & Grow is no exception. Instead of investing everything in only one credit rating, we spread investments across all 8 ratings, from AA to HR. By investing in several different loan pieces across multiple ratings, Go & Grow helps you get the most out of your investment.”
As explained by Bondora, D-rated loans make up most of the Go & Grow portfolio, “even though it decreased slightly from 26.9% in Q3 to 26.6% in Q4.”
The distribution of the other categories had “a few changes, compared to the monotony of previous quarters. C-rated loans surpassed E-rated loans, jumping 5.3%.” As noted in the update, this considerable increase may be “credited to the massive share of Finnish C-rated loans.”
The Bondora team also noted that E-rated loans are “now in 3rd place, dropping 4.3%. B-rated loans are hot on their heels with 15%—up by 2.6%.”
The update further revealed that the outliers HR-, A- and AA-rated loans “continue to have the smallest distribution across the Go & Grow portfolio, with HR still having the smallest share. In fact, the latter’s share halved from Q3 to Q4.”
Country of origination
As mentioned in a blog post, 2021 was a solid year for Bondora originations “after the shocking events of 2020. Originations rebounded in 2021, with €16,678,471 originated in December alone.”
The blog post pointed out that the increase in Finnish loans was “a direct cause of the massive increases we’ve seen.” Finland increased its percentage share by 4%, “making up 40% of the Go & Grow portfolio.”
Meanwhile, Estonia lost 3% but still “holds the majority share with 52%. Spain lost 1% and now makes up 8% of the Go & Grow portfolio.” Spain still accounts for “the smallest share of loans (9%), but as we gradually increase originations, we could see more Spanish loans in 2022.”
For more details on this update, check here.
