Secondary Market Activity Rebounds in May

Market & Pricing

Secondary Market activity increased for the first time since March, marking a turn in the tide. It grew by an astounding 21.5% to €182,665 transacted. Manual transactions remain the strongest category. Read more:

Secondary Market activity rebounds in May.
Secondary Market activity rebounds in May.

In May, all the categories increased. Portfolio Manager leads the charge with an 87.3% increase compared to April. API transactions followed with 24.1% growth, and Manual transactions brought up the rear with 12.3%.

It must be said that Manual transactions still account for the largest percentage of all transactions (49.3%). Following in close 2nd is the API (41.6%), and Portfolio Manager makes up the rest (9.1%).

Secondary Mark total volume – May 2022
Secondary Mark total volume – May 2022

Current loans

Current loan transactions increased overall by 14.5%, which contrasts with April’s 8.7% decline. A total of €138,674 was transacted, with impressive increases for API (23.1%) and Portfolio Manager (87.3%) transactions. Manual transactions were the exception, noting a decrease of 4%.

Although noting a 2.6% decrease, loans sold at a premium remain the most popular. It made up a 60.4% share of all current loan transactions, totaling €83,798. Loans sold at par grew by 58.6% and made up a 36.9% share. Loans sold at a discount made up 2.7%.

Secondary Market current loan transactions – May 2022
Secondary Market current loan transactions – May 2022

Overdue loans

In May, overdue loan transactions grew by 14.7%, totaling €19,788. Again, loans sold at a discount, at a premium, and at par, all had a relatively equal share of transactions, with ‘at par’ again taking the top spot.

The API had a mammoth growth rate of 49.4%. API transactions took a 36.8% share, equaling €7,287.

Changing pace, manual transactions increased this month by 1.1%, taking the majority 63.2% share with €12,500.

Secondary Market overdue loan transactions – May 2022
Secondary Market overdue loan transactions – May 2022

Defaulted loans

In May, the overall decrease from the previous month was reversed, with increases noted across all transaction categories. Overall, defaulted loan transactions increased by 84.9% and totaled €22,914—nearly double what it was in April. Manual transactions had an 83.7% share, and API transactions had a 16.3% share. The most significant increase came from Manual transactions, growing by a whopping 92.8%.

Loans transacted at a discount dominates this category, with a 94.7% share of all default loan transactions. Transactions at par managed to take a 4.8% share, while those at premium obtained only a 0.5% share.

Secondary Market defaulted loan transactions – May 2022
Secondary Market defaulted loan transactions – May 2022

The Secondary Market increases again

As has become the norm, the Secondary Market see-saws in activity, with solid increases in May after decreases the month before. It grew by an astounding 21.5% to a total of €182,665 transacted.

As more investors opt for the hands-free Go & Grow investment method, it’s natural to see a drop in manual buying and selling of loans on the Secondary Market. But, as the Secondary Market activity is known to go up and down, let’s see if the activity will pick up again.

Remember, investors should not seek higher returns from buying and selling loans on the Bondora secondary market.