This post follows up on my previous post for GoPeer results. As I had in that post I reduced my risk tolerance to C or higher, and continued with an auto-deposit
It was nice that GoPeer fixed their Net Annualized return during 2022. This makes looking at results far more fair, and informative. While gross returns are interesting, they are quite deceiving as I pointed out last year as you have a lot of charge-offs with these consumer loans. The number that matters is what you get to keep after all the fees, charge-offs, etc.
So lets take a look at our 2022 results below:
As you can see the gross yield looks great, but after 15 charged off loans it comes down to a much more realistic 8.2%. This still is considerable better than you can get at any bank, but is a much higher level of risk.
With the higher interest rates now available from Outlook Financial or EQ Bank the performance delta has really narrowed. Given that I turned off my auto-deposit in January 2023 and plan to just let the current principle and returns keep getting auto-invested. We will see what happens this year!