In November, Mintos reveals that it saw investments in Notes reach €135.2 million, the largest growth in two years.
According to Peteris Mikelsons, Head of Partnerships at Mintos, this upward trend can primarily be attributed to “larger than usual repurchases, primarily made by Eleving Group, which, afterward, transformed into new investments.”
Due to the mentioned repurchases, Notes available “for investments as well as interest rates decreased during November. Notes available for investments in EUR at the end of November stood at €63.4 million, compared to €81 at the end of October.”
The average interest rate for November “went down to 12.3%, leading to an annualized average net return of 11.21% (YTD 10.21%). Interest earned by investors climbed to €4.6 million. The platform’s cumulative interest earned by investors has now amassed to €259.4 million, while the total assets under administration have reached €608.2 million.”
This was further complemented by “the amount invested in Fractional Bonds on Mintos during the month, reaching €1.1 million.”
Mikelsons added that we should “keep an eye out for more Fractional Bonds, coming soon.”
While sharing other key insights, Mintos noted that In 2023, “amidst market volatility and economic uncertainties, value investing has seen a resurgence.”
Value investing involves picking stocks “believed to be trading below their intrinsic or book value.”
Investors adopting this strategy perceive “that the market often overreacts to news, causing stock price movements that do not align with the company’s long-term fundamentals. Value investors focus on the gap between a stock’s market price and its intrinsic value, analyzing company fundamentals like assets, liabilities, cash flow, revenue, and other financial metrics to estimate this value.”
The shift toward value investing is largely “attributed to changing economic conditions, particularly the end of the era of easy money and rising interest rates.”
The Federal Reserve’s plan to “raise short-term interest rates and curtail monthly bond purchases signals a significant shift in monetary policy, influencing the stock market’s dynamics.”