We previously noted how total investment on the Bondora platform rose substantially in March. The same can be said for transactions on the Bondora secondary market. Total investments via this channel rose by 28% to €950,316 in March. All three modes of investment, API, Manual, and Portfolio Manager, saw increases on the month, with Portfolio Manager carrying the bulk of investment at €476,853, up 36% from February.
On the whole, secondary market transactions of current loans jumped by 29% to €890,869 on the month. This was led by a substantial increase in Portfolio Manager loans purchased at par value, accounting for €476,047, or 53% of total current loan transactions. Current loans purchased at a discount were the only category which contracted on the month, down a minimal 3%.
Loans purchased at par value via the Bondora API more than tripled to €3,316. All told, overdue loan purchases increased by 19% to €34,577. There continues to be no overdue loans purchased by Portfolio Manager.
Defaulted loans remain the least transacted category on the Bondora secondary market, accounting for only €24,869 of total transactions. This is a slight uptick from last month, but still only accounts for 2.6% of total secondary market transactions.
Long-Term Secondary Market Trends
Transactions on the secondary market are totally dependent on investor demand, which is why we see fluctuations from month to month. It is clear that API transactions are the rarest type of transaction conducted, due to the smaller number of users. It is also obvious that most secondary market transactions are conducted on Current Loans, as Overdue and Defaulted Loans are in less demand and are therefore transacted less frequently.
As always, investing in the secondary market can be risky, and you should always learn as much as possible before attempting to buy and sell loans on the secondary market. Investors should not seek higher returns from buying and selling loans on the Bondora secondary market.