Secondary Market makes a comeback in November

Market & Pricing

Secondary Market transactions came roaring back after a decline in October. A total of €527,808 was transacted on the Bondora Secondary Market in November, up from €387,537 last month, indicating a stable growth rate of 36.2%.

Secondary Market transactions took off in November.
Secondary Market transactions took off in November.

While both API and Portfolio Manager transactions were lower, Manual transactions supported the overall growth of the Market in November. It increased by 78.9% and totaled €383,915. That’s 72.7% of all Secondary Market transactions. The month’s biggest surprise was that API transactions (€75,359) surpassed Portfolio Manager transactions (€68,534). Because API transactions usually make up the smallest portion of transactions, this is quite an unexpected turn of events.

Secondary Market – Total volume of transactions – November
Secondary Market – Total volume of transactions – November

Current loans

After accounting for 85.9% of all Secondary Market transactions in October, Current loans only accounted for 67.2% of all November transactions, totaling €354,803. Portfolio Manager transactions fell from €88,525 to €68,534. On the flipside, Manual transactions rose by 29.7% to €221,804.

Current loan transactions at par value decreased by 21.1% to €112,810. However, investors were more willing to pay a premium for current loans, with €212,570 in current loans transacted at a premium, compared to €180,088 last month.

Secondary Market – Current loan transactions – November
Secondary Market – Current loan transactions – November

Overdue loans

Transactions of overdue loans grew by 81.0% to €63,167 over the month. While API transactions only grew from €6,592 to €6,746, manual transactions jumped the highest, up 99.4% to €56,421. The majority of manual transactions (75.7%) were still conducted at a discount, maintaining their previous month’s trend.

Transactions conducted at par value did jump by 150.9% to €12,077, but still only accounted for 19.1% of all overdue loan transactions.

Secondary Market – Overdue loan transactions – November
Secondary Market – Overdue loan transactions – November

Defaulted loans

The defaulted loan category was another big surprise in November, growing by an incredible 459.3% month-over-month to €109,838. While API transactions (€4,148) remained almost unchanged, manual transactions rose to €105,689 from only €15,292 last month. Of these manual transactions, 97.2% were conducted at a discounted price. 

Secondary market – Defaulted loan transactions – November
Secondary market – Defaulted loan transactions – November

The Secondary Market takes off 

The Bondora Secondary Market was on fire in November, with €527,808 transacted over the month—the highest level for the Secondary Market since July. This was led by a 459.3% increase in defaulted loans, totaling €109,838, and far outpacing transactions for overdue loans. As the global economy continues its recovery, investors can see even more activity on the Bondora Secondary Market.

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.