April: Another Slow Month for the Secondary Market

Market & Pricing

Transactions on Bondora’s Secondary Market fell once again, marking its third consecutive month of declines. In April, €240,230 was transacted on the Secondary Market, compared to €269,831 in March. This translates to an 11.0% decline month-over-month.

April was the 3rd slow month for the Secondary Market.
April was the 3rd slow month for the Secondary Market.

Manual transactions remain the most widely transacted on the Secondary Market, totaling €156,330 and accounting for 65.1% of all transactions. This month’s surprise was Portfolio Manager transactions, which rose by 17.5% to €25,677 on the month. These transactions accounted for 10.7% of all Secondary Market transactions on the month.

Total volume table – April 2021
 Total volume table – April 2021

Current loans

After declining 9.5% last month, Current transactions fell at a lesser pace, down by 4.2% this month. Even though the total figures for transactions At par and Discount value were higher overall, they accounted for less share of all Current loan transactions this month. Combined, At par and Discount value transactions accounted for 26.4% of Current loan transactions, compared to 28.3% last month.

Current loan transactions – April 2021
 Current loan transactions– April 2021

Overdue loans

Overdue transactions fell by 31.3% to €21,158 this month. Transactions were down across all categories, with Premium transactions falling the most—down 43.8% to €7,546. Unlike in March, where the category with the most transactions was Manual transactions at a premium, this shifted to Manual transactions at a discount in April. They accounted for 34.8% of all Overdue loan transactions.

Overdue loan transactions – April 2021
Overdue loan transactions– April 2021

Defaulted loans

After increasing by 15.7% in March, defaulted loan transactions were down by 35.8% to a total of €20,221. Manual transactions at a Discount remain the overwhelmingly largest category for Defaulted loan transactions, totaling €16,512 and accounting for 81.7% of all Defaulted loan transactions.

Defaulted loan transactions – April 2021
Defaulted loan transactions – April 2021

For the third straight month, Secondary Transactions on the Bondora platform are on the decline, totaling €240,230. April brought an 11.0% monthly decline, compared to an 8.4% decline in March. Yet, Portfolio Manager transactions were still higher overall, up by 17.5%, even as all other Secondary Market categories were lower.

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

You can learn more about the Bondora secondary market here.