Secondary Market Activity Increases in May

Market & Pricing

The Bondora Secondary Market provided consistent transaction numbers to April’s. However, they are still lower than historical figures. All told, €242,322 was transacted on the Bondora Secondary Market in May—a 0.9% increase from the previous month. But it’s still well below the €269,831 total transaction figure for March.

Secondary Market Activity Increases in May.
Secondary Market Activity Increases in May.

Interestingly, only API transactions were higher this month—up 27.3% to €74,127. API transactions accounted for 30.6% of all Secondary Market transactions in May, compared to 24.2% in April. This month, manual transactions were lower by 6.5%, while Portfolio Manager transactions were lower by 14.0%.

Total volume – May 2021
Total volume – May 2021

Current loans

Transactions of current loans were almost identical to April, totaling €198,559. That’s a nominal 0.1% increase from last month. API transactions were up by 23.4%. Alternatively, Manual transactions were down 6.9%, and Portfolio Manager transactions were lower by 14.0%.

Current loans – May 2021
Current loans – May 2021

Overdue loans

Counter to the month’s total trend, Overdue loan transactions were lower on the month, down by 1.4% to €20,866 in May. The majority of overdue loan transactions (67.6%) were still conducted manually. API transactions rose by 40.7% to €6,765, while there remain no overdue loan transactions conducted via Portfolio Manager.

Overdue loan transactions – May 2021
Overdue loan transactions – May 2021

Defaulted loans

Defaulted loan transactions were up by 13.2% to a total of €22,897 in May. This increase was led by API transactions, which rose from €2,935 to €5,046. Manual transactions accounted for 78.0% of all defaulted loan transactions.

Defaulted loan transactions – May 2021
Defaulted loan transactions – May 2021

API transactions on the rise

The Bondora Secondary Market held steady in May, seeing a slight 0.9% increase in transactions on the month. However, API transactions showed the most change, increasing by 27.3% to a total of €74,127. Will the growth of Secondary Market API transactions continue? We will have to wait until next month to find out.

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.