The roller-coaster Secondary Market fell in December

Market & Pricing

The past few months have seen Bondora Secondary Market transactions yo-yo from growth to contraction in sizable ways, and this month was no different. After growing by 36.2% in November, Secondary Market transactions were down by 32.8% in December, totaling €354,480.

The roller-coaster Secondary Market fell in December.
The roller-coaster Secondary Market fell in December.

Manual transactions, which make up most of all Secondary Market transactions, were lower by €123,193 (32.1%). Portfolio Manager transactions totaled €38,966—a 43.1% drop from last month. And even as API transactions fell by 27.3% in December, Portfolio Manager transactions remained the Secondary Market’s lowest volume.

Secondary Market total volume – December 2020
Secondary Market total volume – December 2020

Current Loans

Current loans totaled €227,859 in December—decreasing by 55.7%. Additionally, the proportion of current loan transactions, compared to all Secondary Market transactions, continued to fall, declining from 67.2% in November to 64.3% in December.

All current loan transaction categories decreased in December.

  • API: ⬇️ 29.2% to €45,615
  • Manual: ⬇️ 35.4% to €143,276
  • Portfolio Manager: ⬇️ 43.1% to €38,966

However, investors were more willing to pay a premium for current loans, with 65.0% of current loan transactions being conducted at a premium price compared to 59.9% in November. Concurrently, discounted current loan transactions fell to an almost negligible amount (€8,503).

Current loans – December 2020
Current loans – December 2020

Overdue Loans

Transactions for overdue loans were cut down almost in half by 44.5%. Manual transactions at a discount comprised 51.9% of all overdue loan transactions, down from 67.6% in November. There was an increase in manual transactions at a premium, up to €5,582 from €3,814. There continued to be zero overdue loan transactions completed by Portfolio Manager.  

Overdue loans transactions – December 2020
Overdue loans transactions – December 2020

Defaulted Loans

The least affected category in December was Defaulted loans, which fell by only 16.6% to a total of €91,583. Manual transactions accounted for 96.0% of all Defaulted loan transactions, compared to a similar 96.2% in November. The only category to see an increase was Manual transactions at par value, totaling €7,675—a massive 600.9% jump from last month. 

Defaulted loans transactions – December 2020
Defaulted loans transactions – December 2020

The Secondary Market continues to see-saw

Several months of back-and-forth transaction totals on the Secondary Market has created a see-saw effect. One month, investors are heavily involved in the Secondary Market, while the next month’s transactions slow to a snail’s-pace. This see-saw trend can be seen by the 30%+ swings in Secondary Market transactions over the past few months alone. There is not much of a long-term trend for the Secondary Market, and its volume will be monitored in the coming months to see if any statistically significant changes occur.

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.