Peer-to-peer lending is generating a nominal annual return of between 11 and 12 per cent, despite ongoing default risks, research by Robocash has found.
This is in contrast with bonds and savings deposits which, although stable, are failing to outpace inflation.
The Croatia-based automated investment platform estimates that the yield on bank deposit rates stands at between 4.5 and 4.75 per cent, while global bonds yield (calculated based on the 10Y World Bonds Yield) fluctuate between five and 5.5 per cent.
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“Deposits, despite their low returns, remain popular because of capital preservation guarantees, especially in conditions of moderate inflation,” the platform’s experts say.
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Going forward, the experts expect fixed-income instruments to generate lower returns in inflationary conditions, with investors potentially shifting their appetite to bonds with yields above inflation.
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