The Anonymous Widower

Zopa Returns – August 2009

I posted a graph and explanation of this a few weeks ago.

So have things changed?

Zopa Returns - August 2009

There are various lines shown on the graph.

• Red shows the A* lending rate
• Blue (Earn1) shows the returns discounting for any bad debt, but including accounts in arrears.
• Orange (Earn2) shows the returns discounting for any bad debt and arrears.
• Dark Blue at the bottom, is the OBR or Official Bank Rate

Notes.

1. Earn2 is creeping back up towards Earn1.  I think this is because after initial hiccups accounts tend to settle down.  I also think that Zopa have tightened their lending conditions, which may mean they get less hiccups.
2. Earn1 seems to have a sawtooth pattern.  This is because, most contracts are from the 25th or one month to the 3rd of the next.  At least the monthly peak rate seems to be rising.
3. At present the Inland Revenue does not think that bad debts are allowable against tax.  Many disagree and my accountant has said that he believes they will be allowed.  After all do they want a big fight over £200?

I’m still happy.

August 29, 2009 - Posted by AnonW | Business, Finance | Banks, Zopa