On July 04, 2018 I made my monthly Mintos deposit of €200,00 which I invested as diverse as possible. Right now there is no active cashback campaign so this was the perfect chance for me to start diversifying. Of course, I always buy loans only with Buyback Guarantee and I try to find loans with high returns.
Also, Mogo issued a bond worth EUR €50 million with an annual interest rate of 9.5%. That is substantially less than the loan listing on Mintos so Mogo will repurchase part of its loans following this bond issuance. Starting from July 13, 2018, Mogo will partially repurchase loans from investors on Mintos using their call option as stipulated in the assignment agreement. During July, Mogo plans to gradually repurchase in total up to EUR 16 million net of loans
To be honest I don’t know how I feel about that. On the one hand, Mogo will repurchase loans from me that I bought last month and I get to keep my cashback reward of 5% but on the other hand Mogo will reduce the interest rate at which it sells loans to investors on Mintos. The net annual return rate for Mogo loans will be up to 11% and this seems to have pushed other loan originators to reduce their yields as well. I guess we will see how that plays out.
On the following screenshot of my monthly account statement, you will be able to see all the details.
For the month of July 2018 I deposited €200,00 and the total return from cashback, interest, late fees and secondary market transactions was €38,76.
Until Next Time,