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How can I use the recovery rate?

The recovery rate helps you to understand how much of the principal balance of loans in default you are likely going to receive. This figure can then be used to adjust future cash flows and to arrive at a risk-adjusted yield-to-maturity state of your Bondora portfolio. You can do this for your portfolio through the Cash Flow page Settings section. The Forecast settings give recommended ratios calculated on your portfolio historic cash flow that you can use, instead of taking them from recovery rate charts.

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* Capital at risk. Investments made with Bondora are not guaranteed, nor is the preservation of value invested guaranteed. Please note that the yield achieved in past periods does not guarantee the rate of return in future periods. The yield of the Go & Grow Unlimited tier is up to 4% p.a. The yield for Go & Grow is up to 6.75% p.a. Before deciding to invest, please review our risk statement and consult with a financial advisor if necessary.