Average net income (€) of borrowers increases across the board

Recently, we have released several posts that explore the origination of loans by unique data like home ownership, education, employment duration and more. This month, we’re going to do the same and compare how this has changed in comparison to the previous months.

Average income, loan amount and age

In May, the average net income increased across the board, in Estonia this was +9% (+€101), in Spain +23% (+€346) and Finland +13% (+€335). The total number of loans increased in May (1,737) compared to the previous month (1,709) but were still lower than January (1,919).

origination-avg-net-income-may-2018-en

In line with an increase in the average net income, the average loan amount also increased in Estonia +8% (+€129) and Finland +7% (+€198). In comparison, the figures decreased in Spain -8% (-€97).

origination-avg-loan-amount-may-2018-en

Whilst the figures are relatively static in Estonia, the largest change seen in May was an increase in the average age of Spanish borrowers (+2 years) and a reduction in Finland (-1 year). Overall, we commonly see the figures fall within the early to late 40’s range.

origination-avg-age-may-2018-en

The average loan duration in May was higher in Estonia (+2 months) and Spain (+2 months) but decreased in Finland (-1 month). For a more representative indicator, take a look below at the most common durations.

origination-avg-loan-duration-may-2018-en

Loan and employment duration

Traditionally, Bondora has not focused on issuing short term loans and this is still clearly visible from the most recent data. Only 14 loans in total were issued under a duration of 12 months and were all originated in Estonia. The majority of loans issued had a duration of 36 months or above and only a total of 92 loans (5% of the total share) were issued with a smaller duration than this. More specifically, the most common loan duration across all countries was 36 months, followed by 60 months and 48 months.

Offering the option to take a loan with a duration of up to 60 months allows borrowers to have affordable monthly payments that they can budget for, along with their other commitments.

origination-durations-may-2018-en

Employment duration remains the same as previous months, with ‘More than 5 years’ being the most common followed by ‘Up to 5 years’ and ‘Up to 1 year’. This suggests that those who are confident in the stability of their employment (and ultimately their monthly income) are most likely to apply for a loan.

origination-employment-may-2018-en

Education and home ownership

Similarly, to previous months, the most common type of education declared by borrowers is of a High School standard (44%), followed by University (27%), Vocational School (17%) and Junior High School (11%). Per country, the figures tell a different story. In Estonia the most common is still High School, whereas University is the most common in Finland and Spain.

Whilst education curriculums and institutions also vary by country and district, it provides an interesting observation when compared with other data points.

origination-education-may-2018-en

The most common home ownership status in Estonia and Finland is ‘Owner’, in comparison the most common in Spain is ‘Tenant’. In previous months, the status has been the same in Estonia and Finland, however it seems to fluctuate in Spain since the distribution is much more evenly spread other than ‘Council House’ and ‘Other’.

Home ownership status can give us an insight in to the cultural differences between different geographies and how this can influence the wider economy. For example, in Finland only 2 borrowers were registered as ‘Living with parents’. In Estonia, just under half of all borrowers are owners of their home.

origination-ownership-may-2018-en

Verification

The data below shows how many customer’s income and expenses have been verified. Regardless of whether the borrower’s income has been verified, the background checks with population and credit referencing agencies are still conducted along with a wide range of other data points used to assess their expected default rate. Overall, the total number of customers classed as verified are lower than those classed as unverified.

origination-verification-may-2018-en

Which data point is the most important?

The individual risk of issuing a loan to a borrower is calculated using all of the parameters above and many more. The self-reported data which is displayed to investors is typically not very predictive and has relatively little influence on the Bondora rating of a particular loan. Therefore, this information should not be viewed as the only data used in determining the expected default rate of a loan.

Overall, this post can give you a great idea of the basic profile of our borrowers and how this changes with the origination of loans in the coming months. Leave us a comment below and let us know which data points you think are the most influential in credit scoring.

C rated loans originated in Estonia prove to be most popular in May

Welcome to the monthly origination post for the data collected in May 2018. Here, we go in to detail about the distribution of investments that were made and some interesting stats per country of origin. If you missed last month’s post, you can check it out here. The total amount invested in the platform in May 2018 was €3,369,998, an increase of over 10% since the previous month. At the time of writing, Bondora has 36,255 investors and €129M of investments through the platform.

Loan Origination by country

While the distribution of investments by country were similar to the previous months, there were some slight changes again. Estonia still has the highest share of investments at 66%, a reduction of nearly 2% since the previous month. In comparison, the share in Finland has increased by over 3% to 29.3%, approximately 2% lower compared to the 31.06% share in February.

In Spain, we are now seeing a lower share than last month at 4.7% of the total, or €158,307. Even though the share decreased, the average interest rate remained relatively static at 56.36% and increased by nearly 1% in Estonia. In Finland, the average interest rate also remained relatively static at 41.22%.

origination-summary-country-may-2018-en

Share by rating, country and amount

The table below contains the weighted average interest rate, total amount and share per country of origination and rating. Here are some key takeaway’s we can see:

  • Loans graded with a ‘C’ rating account for the highest share of investments at 21.37% of the total, closely followed by ‘D’ rated loans at 18.94%.
  • ‘AA’ rated loans had the lowest percentage originated at 1.25% of the total share (a further decrease since last month), slightly higher was HR rated loans at 1.45%.
  • Finnish ‘F’ rated loans account for the highest share in the country’s total originations at 54.79%, approximately 6% higher than the previous month.
  • Across lower risk loans (AA-B), the average interest rate is the lowest in Finland for AA and B rated loans and in Estonia for A rated loans.
  • The lowest average interest rate across all countries was seen in AA rated loans in Finland at 9.8%, the highest being HR rated loans in Spain at 71.93%.
  • 91.41% of the total share in Spain consists of F and HR rated loans, approximately 2.5% lower than last month.

origination-summary-country-rating-may-2018-en

Bondora’s most simple way to invest gains huge popularity

Welcome to another post from our monthly funding statistics series. Here, we talk about the most popular investment methods used by our customers in May and how this has changed since the previous month.

funding-stats-may-2018-en

funding-stats-april-2018-en

Against the trend of previous month, Portfolio Pro and Portfolio Manager decreased in popularity in May thanks to the introduction of Bondora’s latest way to invest, Go & Grow. Now standing at 29% of the total investments, we saw a reduction of 7% for Portfolio Pro compared to the previous month. In line with this, the Portfolio Manager share also decreased by a huge 11% and now accounts for 47% of the total.

Standing at an impressive 24% of the total share, we expect to see this increase significantly over the coming months. In May, Go & Grow was only available to a small segment of approximately 1,000 users, the average deposit size of these investors being approximately €1,000 each. Go & Grow will be officially released to all investors (new and existing) very soon.

The percentage of investments made through the API decreased slightly to 0.44% of the total (rounded figures in the pie charts), due to the technical skills required for this option we do not expect to see this fluctuate widely on a monthly basis, as seen with the other investment options.

The total amount invested in the platform also increased compared to the previous month. Look out for our upcoming post where we discuss where the highest percentage of investments have been made, breaking it down by country, risk rating and durations.

* * *

If you’re still unsure of the differences between each investment method, here’s a brief summary:

Go & Grow – Go & Grow is an incredibly simple and automated tool that allows you to earn 6.75%* p.a. on your investment and take your cash out at any time. This is for the people who want low risk and ‘no-hassle’ investing with a predictable net return. For now, this is not available to all investors however it will be available to all very soon. Find out more about Go & Grow.

Portfolio Manager – Simply select a strategy ranging from ultra-conservative to opportunistic, deposit funds and you’re ready to go. No further management is required as the Portfolio Manager takes care of everything for you. If you want to leave a certain amount of cash on your account that won’t be invested, go in to your settings and adjust the Spare Cash Balance slider to your desired amount. It’s easy!

portfolio-manager-strategy

Portfolio Pro – Now you have more control. Select the risk ratings you want to invest in (ranging from AA – HR), select which countries, your preferred loan durations and it’s done. If you wish, you can also add a few more rules like the range of interest rates applied to the loan and also the bid size. We will then give you an expected return range along with the distribution you can expect across your selected filters.

portfolio-pro-filter

For a further comparison between the two, check out our video on the topic here.

API – Use your programming skills to access the functionalities of the Bondora platform without using our web interface. The API gives you the ability to bid on specific loans by using different data points such as borrower’s income, country, loan status and many more that fit your personal investment strategy.

What is your favorite method? Let us know in the comments below.

* As with any investment, your capital is at risk and the investments are not guaranteed. The yield is up to 6.75%. Before deciding to invest, please review our risk statement or consult with a financial advisor if necessary.

Check out the performance of our loan portfolio here

Welcome to another data blog post from Bondora, below we take a look in to the actual and targeted net returns from investments by country, year and quarter. It’s important to note that the most recent quarter will nearly always show a higher return as the loans have only recently been issued and at this point the interest element accounts for a high percentage of the total payment, this is why we discuss data that is specifically over 12 months old below.

We have marked the figures with three different colors, firstly light orange to represent 50 or less loans issued, light blue for 51 – 200 and white for 201+. This is a great way to spot anomalies, such as high volatility in low risk ratings.

Key takeaways

  • Across all countries, the best performing quarter so far was seen in Q1 of 2016 at 15.32%, 1.59% above the target.
  • C rated loans in Estonia are the only credit grading which have been issued over 200+ PCS each consecutive quarter since 2015. In Spain, the same is true for HR rated loans except for Q2 of 2015.
  • In Q4 of 2017, all credit ratings issued in Estonia had over 200 PCS.
  • Q3 of 2017 was the first quarter that saw more than 200 PCS issued in AA and A credit ratings in Estonia. This followed suit in Q4 of 2017.
  • The best performing year overall was in 2010 at 29.76% actual net return.
  • Q3 of 2017 was the first quarter that saw more than 200 PCS issued in F and HR rated loans in Finland, in Q4 this was only F rated loans.

Actual and targeted net returns across the board by year

Across all countries and risk ratings, the highest actual net return was seen in 2010 at 29.76%. While this is significantly higher than the most recent figures, it’s important to note that this is from a much smaller sample of loans (1,126 to be exact). Compared to the most recent year, a total of 17,933 loans were issued in 2017.

As mentioned in previous posts, the most recent data will nearly always show a high return as the loans have only recently been issued and at this point the interest element accounts for a high percentage of the total payment. Older data, for example 2009 – 2013, have the highest return as loans from this period may still receive a cash flow from recovery payments. This reinforces how you can maximize your absolute return in P2P by taking a long term view with your investments.

portfolio-performance-yearly-may-2018-en

Actual and targeted net returns across the board per quarter

  • Overall, the average actual net return across all quarters comes in at 13.00%, slightly below the target average of 14.65%.
  • The best performing quarter in 2015 was Q4 at 12.56%, in 2016 this was Q1 at 15.32%.

portfolio-performance-quarterly-may-2018-en

Estonia

  • Q4 of 2017 was the first quarter where no F rated loans were issued, and the 5th consecutive quarter where no HR loans were issued.
  • For data over 12 months old, the best performing quarter is Q3 of 2015, this quarter saw over 200 PCS issued in C rated loans only.
  • The highest number of PCS issued in Estonia was in Q4 of 2017 at 3,600, however the highest amount was in Q2 of 2017 at €6,091,449 and 2,524 PCS.

portfolio-performance-EE-may-2018-en

Finland

  • Only a small percentage of Finnish loans issued total over 200 PCS per credit grading, most recently in Q3 of 2017 this was seen in F and HR ratings.
  • The highest total actual net return across the board (over 12 months old) was in Q1 of 2016 at 13.78%.
  • The actual net return figure for Q4 of 2016 B rated loans shows a rate of -50.09%, however the data is significantly skewed due to less than 5 loans being issued.
  • In Q4 of 2017, the highest number of loans issued were in F rated loans.

portfolio-performance-FI-may-2018-en

Spain

  • Q3 of 2017 saw the highest number of HR loan PCS issued in Spain.
  • The highest total actual return figure over 12 months old was seen in Q1 of 2016 at 22.32%.
  • The highest number of loans were issued in Spain in 2017 at 4,174 PCS and €4,769,825, this figure was only 61 PCS and €266,400 in 2013.
  • Volatility is expected in credit ratings with a higher expected default rate, which is why we always encourage a diversified portfolio of investments.

portfolio-performance-ES-may-2018-en

Defaulted loan purchases increase by 203%

Welcome to May’s Secondary Market statistics blog post. Recently, we talked about the most common methods used to purchase current, overdue and defaulted loans and whether these transactions were made at a premium, discount or par value.

Below, we are going to do the same based on the statistics received in April.

Total volume

secondary-market-stats-totals-may-2018-en

In April 2018, the total amount of investments purchased through the Secondary Market totalled €845,556.93, an increase of approximately 15% since last month. Whilst the order of the most popular methods for making the purchases did not change, the total share and distribution saw some variances compared to previous months. In April, the percentage of manual investments made increased by just over 14% since March although the share of the total decreased slightly to 31.7%. Similarly, the amount of investments purchased via the API on the Secondary Market increased by 24% and the total share for the month increased to 26.7%. Along with the increases in investments purchased manually and via the API, Portfolio Manager saw an increase of over 10% and held approximately 41.6% of the total share.

Current loans

secondary-market-stats-current-may-2018-en

In line with previous months, Portfolio Manager still leads the way in purchasing current loans at a par value. On the other hand, manual investors were the most successful at purchasing current loans at a discounted value. In addition to this, manual investors purchased €82,070.76 of current loans at a premium, compared to €49,081.75 via the API. Whilst there is essentially no priority given to the Portfolio Manager for any loans, it is very fast and is still the most popular investment method among all of Bondora’s customers. As a reminder, no priority is given to any investment method (including Portfolio Manager) and is not biased based on an investor’s portfolio size.

Overdue loans

secondary-market-stats-overdue-may-2018-en

In April, we saw a reduction of 22% in the total amount of overdue loans purchased through the Secondary Market. The majority of these transactions were completed manually and at a discount.

Defaulted loans

secondary-market-stats-defaulted-may-2018-en

Overall, the total amount of defaulted loans purchased through the Secondary Market increased by a huge 203% in April. The most notable change here is the volume of the amount purchased manually and at a discount, in March this figure stood at €23,066.09 where as in April this surged to €81,198.45 (+252%). In comparison, only €4.59 of defaulted loans were purchased at a premium. A unique strategy used by a small number of investors is to purchase defaulted loans with a significant discount with the plan to reap the rewards once the collection and recovery process begins to generate a cash flow.

Highest rate of recovery in 2017 – Finland

Welcome to our monthly blog post on the performance of recoveries. Below, we take a look at the percentage of principal and interest retrieved between 2014 – 2017.

recovery-rate-yearly-may-2018-en

Why is 2017 showing the lowest recovery rate?

On first glance, this may appear to show that the success of our recoveries process has slightly decreased since 2014. However, it is important to note that the latest year will almost always show the lowest recovery rate. Quite simply, this is because the loan is moving through our 3-step collection process and is not yet generating a cash flow or has only recently started generating a cash flow.

A total of €5,989,795.25 was recovered between 2014 – 2017, an increase of 3.24% since last month.

Highest rate of recovery in 2017 – Finland

recovery-rate-year-country-may-2018-en

In 2017, the largest amount of cash recovered was in Estonia with a total amount of €485,862.07, an increase of 13.5% on the absolute amount since last month. However, the highest rate of recovery is still visible in Finland at 46.05% and a total of €343,385.09. It’s important to remember that these statistics will change over the coming months, we explain why in the next section.

Historically, recovery rates have always been the highest in Estonia. Take 2014 as an example, the rate for this period is 79.7% and a huge €976,405.55 recovered. Looking backwards from 2017, you can see the rate of recovery increase over each year in Estonia as more time is allowed for the cash flows to come in.

Why have the figures changed since last month?

After a month or a year ends, investors still receive a cash flow from this time period when the loans were issued. For example, we may still receive a monthly cash flow from a loan that defaulted in 2014. Due to this, the data is consistently being collected and updated to reflect the changes.

What happens when a borrower stops making repayments?

Recently, we published our 3-step collection and recovery process which explains exactly what happens when a borrower misses their monthly loan repayment.

What is the average age of our borrowers? Take a look

Recently, we have released several posts that explore the origination of loans by unique data like home ownership, education, employment duration and more. This month, we’re going to do the same and compare how this has changed in comparison to the previous months.

Average income, loan amount and age

Due to human error, the data published for average net income in the February and March posts were incorrect, however this has been updated in the graph below. In April, the average net income decreased across the board, in Estonia this was -20% (-€295), in Spain -8% (-€133) and Finland -9% (-€262). The total number of loans increased in April (1,709) compared to the previous month (1,610) but were still lower than January (1,919).

origination-avg-net-income-may-2018-en

In line with the reduction in the average net income, the average loan amount also decreased with the largest difference seen in Estonia at -10% (-€191). In Spain and Finland, the average loan amount decreased by 2% and 0.5% respectively.

origination-avg-loan-amount-may-2018-en

Whilst the figures are relatively static in Estonia, the largest change seen in April was an increase in the average age of Spanish borrowers and a reduction in Finland. Overall, we commonly see the figures fall within the early to late 40’s range.

origination-avg-age-may-2018-en

The average loan duration in April was lower in Estonia and Spain but remained static in Finland. For a more representative indicator, take a look below at the most common durations.

origination-avg-loan-duration-may-2018-en

Loan and employment duration

Traditionally, Bondora has not focused on issuing short term loans and this is still clearly visible from the most recent data. Only 12 loans in total were issued under a duration of 12 months and were originated in Estonia other than 1 in Spain. The majority of loans issued had a duration of 36 months or above and only a total of 88 loans (5% of the total share) were issued with a smaller duration than this. More specifically, the most common loan duration across all countries was 36 months, followed by 60 months and 48 months. Offering the option to take a loan with a duration of up to 60 months allows borrowers to have affordable monthly payments that they can budget for, along with their other commitments.

origination-loan-durations-may-2018-en

Employment duration remains the same as previous months, with ‘More than 5 years’ being the most common followed by ‘Up to 5 years’ and ‘Up to 1 year’. This suggests that those who are confident in the stability of their employment (and ultimately their monthly income) are most likely to apply for a loan.

origination-employment-may-2018-en

Education and home ownership

Similarly to previous months, the most common type of education declared by borrowers is of a High School standard, followed by University, Vocational School and Junior High School. Per country, the figures show a different story; In Estonia the most common is still High School, Vocational School in Finland and University in Spain. Whilst education curriculums and institutions also vary by country and district, it provides an interesting observation when compared with other data points.

origination-education-may-2018-en

The most common home ownership status in Estonia and Finland is ‘Owner’, in comparison the most common in Spain is ‘Living with parents’. In previous months, the status has been the same in Estonia and Finland, however it seems to fluctuate in Spain since the distribution is much more evenly spread other than ‘Council House’ and ‘Other’. Home ownership status can give us an insight in to the cultural differences between different geographies and how this can influence the wider economy. For example, in Finland only 6 borrowers were registered as ‘Living with parents’. In Estonia, just under half of all borrowers are owners of their home.

origination-home-ownership-may-2018-en

Verification

The data below shows how many customer’s income and expenses have been verified. Regardless of whether the borrower’s income has been verified, the background checks with population and credit referencing agencies are still conducted. Overall, the total number of customers classed as verified are higher than those classed as unverified.

origination-verification-may-2018-en

Which data point is the most important?

The individual risk of issuing a loan to a borrower is calculated using all of the parameters above and many more. The self-reported data which is displayed to investors is typically not very predictive and has relatively little influence on the Bondora Rating of a particular loan. Therefore, this information should not be viewed as the only data used in determining the expected default rate of a loan.

Overall, this post can give you a great idea of the basic profile of our borrowers and how this changes with the origination of loans in the coming months. Leave us a comment below and let us know which data points you think are the most influential in credit scoring.

Monthly origination – Check the latest stats for April 2018 here

Welcome to the monthly origination post for April 2018, here we go in to detail about the distribution of investments that were made and some interesting stats per country of origin. If you missed March’s post, you can check it out here. The total amount invested in the platform in April 2018 was €3,051,509, a reduction of 2.5% since the previous month. At the time of writing, Bondora now has 35,529 investors.

Loan Origination by country

While the distribution of investments by country were similar to the previous months, there were some slight changes again. Estonia still has the highest share of investments at 67.54%, an increase of over 1% since the previous month and the highest share seen this year. In comparison, the share in Finland has decreased again by over 1% to 26.1%, approximately 5% lower compared to the 31.06% share in February.

In Spain, we are now seeing a slightly lower share than last month at 6.37% of the total, or €194,234. Even though the share decreased, the average interest rate in Spain also decreased by approximately 2% whereas the figures increased by roughly 0.5% in Estonia. In Finland, the average interest rate also increased by 3% compared to the previous month.

origination-summary-country-april-2018-en

Share by rating, country and amount

The table below contains the weighted average interest rate, total amount and share per country of origination and rating. Here are some key takeaway’s we can see:

  • Loans graded with a ‘D’ rating account for the highest share of investments at 19.62% of the total, closely followed by ‘C’ rated loans at 19.32%.
  • ‘HR’ rated loans had the lowest percentage originated at 1.83% of the total share (a further decrease since last month), slightly higher was AA rated loans at 2.64%.
  • Finnish ‘F’ rated loans account for the highest share in the country’s total originations at 48.11%, approximately 5% higher than the previous month
  • Across lower risk loans (AA-B), the average interest rate is the lowest in Finland in all cases
  • The lowest average interest rate across all countries was seen in AA rated loans in Finland at 9.41%, the highest being HR rated loans in Spain at 72.66%
  • 93.93% of the total share in Spain consists of F and HR rated loans, nearly 2% lower than last month.

origination-summary-country-rating-april-2018-en

What conclusions can you draw from this data? We would love to hear them, leave us a comment below and let us know.

A new way to invest takes 5% of the share

Welcome to another post from our monthly funding statistics series. Here, we talk about the most popular investment methods used by our customers in April (including our latest product) and how this has changed since the previous month.

April Bondora 2018

Bondora March 2018

Against the trend of previous month, Portfolio Pro slightly increased in popularity in April and the percentage of investments made through the tool have increased. Now standing at 36% of the total investments, we saw an increase of 1% compared to the previous month. In line with this, the Portfolio Manager share decreased by 6% and accounts for 58% of the total.

The reductions in the percentage of investments made through Portfolio Manager seem to be due to the introduction of our latest way to invest, Go & Grow (More info below). Standing at a modest 5% of the total share, we expect to see this increase significantly over the coming months.

The percentage of investments made through the API remained relatively static at 0.6% of the total (rounded figures in the charts), due to the technical skills required for this option we do not expect to see this fluctuate on a monthly basis, as seen with the other investment options.

The total amount invested in the platform remained relatively similar to the previous month. Look out for our upcoming post on where the highest percentage of investments have been made, breaking it down by country, risk rating and durations.

If you’re still unsure of the differences between each investment method, here’s a brief summary:

Go & Grow – Go & Grow is an incredibly simple and automated tool that allows you to earn up to 6.75%* p.a. on your investment and take your cash out at any time. This is for the people who want low risk and ‘no-hassle’ investing with a predictable net return. For now, this is not available to all investors however we do plan to officially release it to everyone within the next month. Find out more about Go & Grow here.

Portfolio Manager – Simply select a strategy ranging from ultra-conservative to opportunistic, deposit funds and you’re ready to go. No further management is required as the Portfolio Manager takes care of everything for you. If you want to leave a certain amount of cash on your account that won’t be invested, go in to your settings and adjust the spare cash balance slider to your desired amount. It’s easy!

Portfolio Manager May 2018

Portfolio Pro – Now you have more control. Select the risk ratings you want to invest in (ranging from AA – HR), select which countries, your preferred loan durations and it’s done. If you wish, you can also add a few more rules like the range of interest rates applied to the loan and also the bid size. We will then give you an expected return range along with the distribution you can expect across your selected filters.

Portfolio Pro May 2018

For a further comparison between the two, check out our video on the topic here.

API – Use your programming skills to access the functionalities of the Bondora platform without using our web interface. The API gives you the ability to bid on specific loans by using different data points such as borrower’s income, country, loan status and many more that fit your personal investment strategy.

What is your favourite method? Let us know in the comments below.

***

*As with any investment, your capital is at risk and the investments are not guaranteed. Before deciding to invest, please review our risk statement or consult with a financial advisor if necessary.

API purchases increase by 36% – Secondary Market stats

Welcome to March’s Secondary Market statistics blog post. Recently, we talked about the most common methods used to purchase current, overdue and defaulted loans and whether these transactions were made at a premium, discount or par value.

Below, we are going to do the same based on the statistics received in March.

Total Volume

secondary-market-stats-totals-april-2018-en

In March 2018, the total amount of investments purchased through the Secondary Market reached totalled €736,426.89, an increase of approximately 7% since last month. Whilst the order of the most popular methods for making the purchases did not change, the total share and distribution saw some variances compared to previous months. In March, the percentage of manual investments made increased by nearly 3% since February although the share of the total decreased by 1% to 32%. Similarly, the amount of investments purchased via the API on the Secondary Market increased by 36% and the total share for the month increased to 25%. Along with the increases in investments purchased manually and via the API, the Portfolio Manager saw a reduction of over 6% and held approximately 43% of the total share.

Current loans

secondary-market-stats-current-april-2018-en

In line with previous months, the Portfolio Manager still leads the way in purchasing current loans at a par value. On the other hand, manual investors were the most successful at purchasing current loans at a discounted value. In addition to this, manual investors purchased €110,284 of current loans at a premium, compared to €65,155.02 via the API. Whilst there is essentially no priority given to the Portfolio Manager tool for any loans, it is very fast and is still the most popular investment method among all of Bondora’s customers. As a reminder, no priority is given to any investment method (including the Portfolio Manager) and is not biased based on an investor’s portfolio size.

Overdue loans

secondary-market-stats-overdue-april-2018-en

In March, we saw an increase of 18% in the total amount of overdue loans purchased through the Secondary Market. The majority of these transactions were completed manually and at a discount.

Defaulted loans

secondary-market-stats-defaulted-april-2018-en

Overall, the total amount of defaulted loans purchased through the Secondary Market decreased by over 10% in March compared to the previous month and even more so since January and December. The most notable change here in March is the amount purchased at a premium, in February this figure stood at €5,589 where as in March this decreased to €32.56, nearly all of which was completed manually. Approximately 99% of defaulted loans purchased via the API were completed at a discount. A unique strategy used by a small number of investors is to purchase defaulted loans with a significant discount with the plan to reap the rewards once the collection and recovery process begins to generate a cash flow.