2023-11-27 15:42:11
Update
November 27, 2023
16:42
The battle for secure investments rages on. While government bond rates will be revealed this Tuesday and savings rates rise, crowdlending stands out.
To the day before the publication of the rates for new government bonds by the Federal Debt Agency, the crowdlending platform Look&Fin, announced Monday, in a press release, the increase in returns on its investments with 100% guaranteed capital.
Look&Fin has raised the rates of Secured A+ loan formulas to 5.25% over 1 year (3,67% net) et 6.25% over 5 years (4,37% net).
“We are convinced that the yields on 5-year government bonds will be significantly lower than what we are proposing.”
Attractive rates, 1 year and 5 years
And “even if the yields on 5-year government bonds are not yet known today, we are convinced that they will be significantly lower than what we are offering to our community,” commented Frédéric Lévy Morelle, CEO of Look&End.
In 2023, investors have already placed more than 21 million euros in Secured A+ loans with 100% insured capital. “Given the attractiveness of the returns and the solidity of the security, files are generally financed in less than a minute.”
In the event that two monthly payments remain unpaid, the insurance company reimburses the investors’ remaining capital.
Product comparisons for defensive investors
Like government bonds, term accounts and savings accounts, investments secured by crowdlending insurance are products intended for investors with a defensive profile. But certain characteristics differentiate them.
State bonds are guaranteed by the Belgian State and can be resold on the secondary market before their maturity, for a fee.
Term accounts are generally guaranteed by the issuing bank and can also be terminated early, with the risk of losing most of the promised return.
A+ loans offered by Look&Fin are protected by an insurance mechanism on 100% of the invested capital, by the insurer Atradius. In the event that two monthly payments remain unpaid, the insurance company reimburses the investors’ remaining capital. But it is an illiquid investment.
Good rating from Moody’s
To compare the risk associated with these investments, we refer for example to the ratings
assigned by international rating bodies such as Moody’s, which measure the risk of default of the entity securing the investment. The state voucher is the most secure – note Aa3 pour the Belgian state – while the big banks or
Having discovered have very good grades A1.
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