Bondora Explains Why Go and Grow Is Successful, Mainly due to Portfolio Distribution

For those interested in how Go & Grow works, Bondora recently shared information about what makes it successful (mainly its portfolio distribution).

Bondora has provided details on how the claims added to Go & Grow are distributed, the most common ratings, the “most popular” goal chosen by investors, and other important information.

Bondora reveals that Go & Grow is their investors’ “favorite” way to invest. They have over 144,000 “satisfied” Go & Grow investors.

According to Bondora, there’s a “good reason” why it’s so popular: people want “to build their wealth and don’t want to waste valuable time figuring out complicated investment funds.”

Go & Grow is their simplest solution. And, with the new Go & Grow App and the Unlimited tier of Go & Grow, they’re “making it even better.”

As noted in a blog post, diversification is “at the core of [their] business, and Go & Grow is no exception.”

Instead of investing everything in only one credit rating, they “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.”

B and C-rated loans “were the only ones to increase this quarter from Q1 2022.”

The latter had “the largest increase, growing from 24.6% at the end of Q1 to 29.1% this quarter.”

It still “makes up the most significant part of the portfolio, which is mirrored in the overall Bondora portfolio.”

D-rated loans “declined slightly from 23.5% to 22.3%. It is the 2nd largest category in the Go & Grow portfolio.”

E-rated loans “remain in 3rd place, with 14.5%, but only just, as B-rated loans increased their position and are now only 0.5% behind in 4th.” F-rated loans “follow in 5th place, declining from 13.5% to 12.3%.”

Once again, the outliers HR-, A- and AA-rated loans “have the lowest distribution figures, with HR still having the smallest share.” It dropped “from 1.1% to 0.96%.” AA and A-rated loans “decreased by 0.5% and 0.2%, respectively.”

June was “a slower month, as usually is the case in summer, but overall, the average loan origination figure increased from €14.3M in Q1 to €14.7M in Q2.”

Finland continues “steadily on the path of growth, increasing with 2% to a 44% Go & Grow portfolio percentage share.” On the other hand, Estonia “lost 2% and now has a 49% share.” If this path continues, Finland could “soon make up the largest portion of the Go & Grow portfolio distribution.”

Spain maintains “a steady share of loans at 7%.” It has “shown constant and consistent growth since September 2021’s relaunch, and we expect this trend to continue.”

Across all three of Bondora’s markets, C-rated loans still “make up the largest share of loan ratings.” Finland’s C-rated loan category still “makes up the majority in the country and across all our loans but fell with nearly 10% to a smaller share of 42.4%.”

Estonia’s C-rated loan category is “the 2nd largest across all our loans, with a 17.4% rating.” But the B-rated loan category “has increased from 9.5% at the end of Q1 to 13.5% at the end of Q2. F and HR-rated loans have not been originated in Q2.”

Lastly, in Spain, they are “still only originating C-rated loans.” Although Spanish loans have increased steadily since relaunching in September 2021, June 2022 was “the first month since then to have shown a decline in originations. At the end of Q1, it had a 3.4% share, but now it is a 2.8% share.”

For more details on this update, check here.

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