Manual Transactions Lead Secondary Market Activity

Market & Pricing

The Bondora Secondary Market transactions fell for the second consecutive month, down by 8.4% from February to €269,831.

Manual Transactions Lead Secondary Market Activity

While total Secondary Market transactions dropped, there was a slight increase in Manual transactions, which totaled €186,824 in March. This brought the total share of Manual transactions to 69.2%—up from 63.2% in February. Portfolio Manager transactions were lower by 20.1% to €21,860. API transactions followed suit and declined by 24.5% to €61,146.

Total volume table – March 2021
Total volume table – March 2021

Current loans

In March, investors transacted €207,538’s worth of Current loans on the Secondary Market—a decline of 9.5% compared to February. In total, all three product categories (Discount, Par, and Premium) were lower over the month. However, Manual transactions at a Premium continued to rise, hitting €125,281—a growth rate of 3.9%. Manual transactions at Par value, on the other hand, dropped by 57.7% to €4,056.

Current loans table – March 2021
Current loans table – March 2021

Overdue loans

API transactions of Overdue loans fell by 57.4% to €4,035 in March. Manual transactions also fell to €26,745, indicating a 9.5% decrease. Overall, Overdue transactions declined by 19.5%. As always, there were no Portfolio Manager transactions for Overdue loans.

Overdue loans transactions – March 2021
Overdue loans transactions – March 2021

Defaulted loans

Defaulted loans bucked this month’s trend by growing 15.7% to €31,511. Both Manual transactions (up 19.6%) and API transactions (up 3.7%) were higher over the month. The largest category for Defaulted loans continues to be Manual transactions at a Discount, totaling €21,443, or 68.0% of all Defaulted loan transactions.

Defaulted loans transactions – March 2021
Defaulted loans transactions – March 2021

On the decline

After many months of going back and forth, the Secondary Market was down for the second month in a row. An 8.4% month-over-month decline as seen this month is not uncommon for a secondary market that tends to fluctuate. Interestingly, defaulted loan transactions rose even as fewer transactions on the market were being made overall.

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.