Portfolio Manager transactions lead Secondary Market despite decline

Market & Pricing

The Secondary Market seesaw continued to swing in February. With a total of €294,682 in transactions, the Secondary Market fell by 25.6%. This was in contrast to January when it grew by 11.7%.

Portfolio Manager transactions lead Secondary Market despite decline.
Portfolio Manager transactions lead Secondary Market despite decline.

Portfolio Manager transactions had the largest decline, down by 63.2% to €27,362. Manual transactions also fell drastically, from €244,520 last month to €186,317 in February—a 23.8% decline. The one category bucking this month’s trend was API transactions, which grew by 4.9%.

The total share of each category on the month was as follows:

  • Manual: 63.2%
  • API: 27.5%
  • Portfolio Manager: 9.3%
Secondary Market Total Volume – February
Secondary Market Total Volume – February

Current loans

Transactions of current loans brought down the Secondary Market as a whole in February. A 30.1% decline in transactions saw current loan transactions total €229,226. Discounted transactions spurned this trend by growing by 372.7% to €23,310.

Secondary Market current loans – February
Secondary Market current loans – February

Overdue loans

Bucking this month’s overall trend, overdue loan transactions grew by 10.6% to €38,217. Similar to current loans, transactions of overdue loans at a discount were higher, up by 17.6% to €16,258. API transactions almost doubled, coming in at €8,660 this month compared to €4,802 last month.

Secondary Market overdue loans transactions – February
Secondary Market overdue loans transactions – February

Defaulted loans

Defaulted loan transactions totaled €27,238, declining by 19.0%. While manual transactions fell by 24.6%, API transactions grew by 29.4% to €4,510. The biggest decline was in manual transactions at a premium, totaling only €607 in February, down by 92.2%. However, more manual transactions were done at par value, totaling €6,455 in February, which translates to an astonishing growth rate of 473.2%.

Secondary Market defaulted loans transactions – February
Secondary Market defaulted loans transactions – February

Cheaper transactions on the Secondary Market?

While the Secondary Market’s overall trend was lower in February, another trend stood out. Across market categories, investors were more likely to purchase Secondary Market originations at a discount, while transactions at a premium dropped almost across the board. This is a notable trend to watch in the coming months.

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, or contact an experienced Investor Relations Associate over our Support-Site here.