Ups and Downs on the Secondary Market in September

Market & Pricing

Bondora investors took a small step back from Secondary Market transactions in September. But after the exceptional growth in August, it was to be expected that activity would dip. A total of €311,848 was transacted on the Bondora Secondary Market.

In September, the Secondary Market had ups and Downs.
In September, the Secondary Market had ups and Downs.

After a 107.9% jump in the amount of capital traded on the Secondary Market in August, there was a 7.8% month-over-month decline. Growth rates across products were wildly varied, displaying significant volatility on the month.

As seen in the monthly growth rate, Manual transactions grew significantly, while both API and Portfolio Manager transactions fell sharply. Although, after the massive increases in August, it was to be expected that API and Portfolio Manager transactions would revert to more normal levels.

Secondary Market total volume – September 2021
Secondary Market total volume – September 2021

Current loans

There was a 36.6% decline in current loan transactions for September. Interestingly, investors were even more likely to pay a premium for current loans on the Secondary Market, as premium transactions accounted for 66.7% of all transactions compared to 46.2% in August. On the flipside, API transactions fell by 51.0% and accounted for 35.4% of all current loan transactions. 

Current loans – September 2021
Current loans – September 2021

Overdue loans

Overdue loan transactions jumped higher by 77.2%. Investors found more deals for overdue loans, with a 315.2% increase on the month. It now accounts for 60.5% of all overdue loan transactions. This month, manual transactions were used more, accounting for 85.7% of all transactions, compared to 60.7% in August.

Overdue loans transactions – September 2021
Overdue loans transactions – September 2021

Defaulted loans

The biggest change in Secondary Market transactions came in defaulted loans, which totaled €80,929 on the month. This represents a massive 372.6% increase month-over-month. This was almost exclusively carried by manual transactions totaling €77,933, or 96.3% of all transactions. While transactions at a premium were negligible this month, par value transactions were higher by 1,084.5%. Still, the manual transactions at a discount carried the defaulted loans transactions, making up 90.9% of these transactions.

Defaulted loans transactions – September 2021
Defaulted loans transactions – September 2021

An uneven month

Investors increased their capital spending in some areas of the Bondora Secondary Market while reducing their investment in others. While there was an overall decline of 7.8% for the entire market, manual transactions grew by 61.5% and defaulted loan transactions were up by 372.6%.

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.


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