Performance of the Zopa markets to date
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| Total lent | £34,051,000 | £13,251,000 | £6,113,000 | £6,318,000 | £1,387,000 |
The marketplace as a whole was experiencing more bad debt than expected on loans issued 1 to 2 years ago, but this has now been brought back well within expectations on loans issued over the last 12 months.
This breaks down across the markets as follows:
| Total lent | £13,293,000 | £4,467,000 | £946,000 | £1,010,000 | £0 |
In line with the whole marketplace, the A*36 market has seen slightly higher than expected bad debts on loans issused 1 to 2 years ago but has no current arrears on loans issued in the most recent 12 months.
| Total lent | £1,519,000 | £435,000 | £5,000 | £0 | £0 |
The A*60 market was launched in October 2007 (hence no data for the oldest tranches). A single loan has recently fallen into arrears bring bad debt close to expectations over the last 12 months, but all other loans in this market are performing well.
| Total lent | £6,517,000 | £1,926,000 | £2,352,000 | £4,301,000 | £1,277,000 |
The A36 market has been performing well over older tranches, but on loans issued 1 to 2 years ago bad debts have been higher than expected. Performance on more recent loans has recovered considerably, but the decision was nevertheless made in July 2009 to increase lifetime bad debt estimations for this market from 1.4% to 1.6%.
| Total lent | £3,896,000 | £1,069,000 | £253,000 | £54,000 | £8,000 |
The loan volumes disbursed to the A60 market up to the end of 2007 were small. Unfortunately two of these loans issued 3 to 4 years ago fell into Default and have had a disproportionately large effect on their tranche. Loans issued 1 to 2 years ago then follow the same trend as the rest of the marketplace with bad debt higher than expected, but Arrears and Defaults over the last 12 months are better than expectations.
| Total lent | £2,920,000 | £1,308,000 | £1,405,000 | £785,000 | £102,000 |
In line with the whole marketplace, the B36 market has seen slightly higher than expected bad debts on loans issused 1 to 2 years ago. With Arrears and Defaults on loans issued in the most recent 12 months also showing an early default, the decision has been taken in December 2009 to increase lifetime bad debt expectations for this market from 3.0% to 4.5%.
| Total lent | £2,501,000 | £1,087,000 | £297,000 | £37,000 | £0 |
Again, in line with the whole marketplace the B60 market has seen higher than expected bad debts on loans issused 1 to 2 years ago but is performing better than expected on loans issued in the most recent 12 months. Nevertheless, it is prudent to assume that bad debt development in the B60 market will broadly mirror that of the B36 market, so the decision has been made in December 2009 to increase lifetime bad debt expectations for B60 from 4.0% to 6.0%.
| Total lent | £855,000 | £858,000 | £586,000 | £118,000 | £0 |
In line with the whole marketplace, loans issued 1 to 2 years ago in the C36 market have shown higher than expected bad debts, but loans issued in the most recent 12 months are performing within expectations. Nevertheless, the decision was made in July 2009 to increase lifetime bad debt estimations for this market from 6.0% to 8.2%.
| Total lent | £997,000 | £1,313,000 | £270,000 | £14,000 | £0 |
The C60 market was launched in September 2006 (hence no data for the oldest tranche). On loans issued 1 to 2 years ago, bad debts have been significantly higher than expected, although more recent loans are now performing well within expectations. The decision was made in July 2009 to increase lifetime bad debt estimations for this market from 8.0% to 11.0%.
| Total lent | £1,126,000 | £483,000 | £0 | £0 | £0 |
The Y36 market was launched in July 2008 (hence no data for the older tranches). In line with the whole marketplace, the Y36 market has seen higher than expected bad debts on loans issused 1 to 2 years ago. With Arrears and Defaults on loans issued in the most recent 12 months also showing an early default, the decision has been taken in December 2009 to increase lifetime bad debt expectations for this market from 5.7% to 7.9%.
| Total lent | £427,000 | £307,000 | £0 | £0 | £0 |
The Y60 market was launched in July 2008 (hence no data for the older tranches). In line with the whole marketplace, the Y60 market has seen higher than expected bad debts on loans issused 1 to 2 years ago while performance on loans over the last 12 months has been within expectations. It is prudent to assume that bad debt development in the Y60 market will broadly mirror that of the Y36 market, so the decision has been made in December 2009 to increase lifetime bad debt expectations for Y60 from 7.6% to 8.1%.