API Transactions Triumph in June – Secondary Market Stats

Market & Pricing

The Secondary Market on Bondora took a tumble in June as investors shied away from transacting on the marketplace. A total of €186,940 was transacted on the market—a month-over-month decline of 22.9% compared to May.

API transactions triumph in June Secondary Market stats.
API transactions triumph in June Secondary Market stats.

This declining transaction trend is due to the smaller number of investors using Portfolio Manager, Portfolio Pro, and the API. As more and more investors opt for the easy, hands-off investing experience that Go & Grow offers, it’s natural for there to be fewer transactions on the Secondary Market.

Here’s a quick overview of the percentage share each category held in May compared to June.

All three categories on the Secondary Market saw lower transactions in June. Portfolio Manager transactions were affected the most, declining by 73.5%. This brought Portfolio Manager transactions well behind API transactions, a reversal that is rarely seen on the Secondary Market.

Secondary Market Total Volume – June 2021
Secondary Market Total Volume – June 2021

Current Loans

Total current loan transactions were lower by 27.2% to €144,563 in June. The only category to grow this month was API transactions at a discount, which totaled €1,938 in May and €2,550 this month. Manual transactions at a premium were still the largest category for current loan transactions, although they did fall by 15.8% to €86,258.

Secondary Market Current loans – June 2021
Secondary Market Current loans – June 2021

Overdue Loans

Overdue loan transactions bucked the overall secondary market trend for the second consecutive month. A total of €22,407 was transacted in overdue loans, representing 7.4% growth. This was led by API transactions (€7,034) and Manual transactions (€15,372), both of which were higher this month.

Secondary Market Overdue loan transactions – June 2021
Secondary Market Overdue loan transactions – June 2021

Defaulted Loans

Defaulted loan transactions fell in line with the month’s trend, dropping 12.8% to €19,969 in total. Manual transactions at a discount comprised more than all the other Defaulted loan transactions, garnering 67.9% of all such transactions, compared to 59.4% in May. Another notable figure is Defaulted loan transactions at par value, which fell by 62.8% on the month.

Secondary Market Defaulted Loan transactions – June 2021
Secondary Market Defaulted Loan transactions – June 2021

Investors turn away from the Secondary Market

A 22.9% decline in Secondary Market transactions in June means that investors were less likely to transact on the marketplace this month than in months prior. Manual transactions not only continue to comprise most of the market’s transactions, but are doing so at a growing rate. Meanwhile, overdue loan transactions were higher even as the remaining Secondary Market categories were down across the board in June.

Remember, investors should not seek higher returns from buying and selling loans on the Bondora Secondary Market.

You can learn more about Bondora’s Secondary Market here.