Last week we released a new feature enabling investors to sell multiple loans as one portfolio in Secondary Market. This feature adds a new tool for the investors to increase liquidity and manage their portfolio risk more effectively.
Sell multiple loans as one portfolio
Before, investors could sell investments from their portfolio one by one by adding the loans to sales cart and signing the sales orders in the Investments page. The new feature adds the possibility to combine the loans you want to sell into one portfolio and put this portfolio to sale on Secondary Market.
To sell multiple investments as one portfolio, just mark the “Sell as a portfolio” checkbox in the Sales list popup. The summary of the investments is displayed in the same view. In addition, you are able to set the price for the portfolio manually by marking the checkbox for “Set a portfolio price”. If you do not set the price manually, the system sets the sum value of outstanding principals as the portfolio price. Next, you just have to continue and sign the sales.
Find portfolios for sale on Secondary Market
To see all the portfolios for sale by other investors, go to the Secondary Market page and enable the “Show portfolios” option on the top right. This quick filter only displays portfolios for sale. You can look into each portfolio and see which loans are included and what is their history and status.
As mentioned, this feature offers a new level of liquidity for users. If an investor wishes to divest themselves of a loan they can do so before it reaches maturity. Additionally, investors can increase the liquidity of lower rated loans by including them with higher rated loans in a single portfolio, thus increasing the chances of liquidation.