European peer-to-peer lender Bondora reports that its secondary market transactions fell during the month of July 2021.
Last month, Bondora continued to see the “downward trend” of fewer transactions taking place on the Secondary Market, the company confirmed while noting that a total of €162,695 was transacted—which represents a 12.9% MoM decline when compared to volumes from June 2021.
As stated in the update from Bondora, this is notably “less than the 22.9% decline from May to June.” So perhaps the Secondary Market “rebound is imminent?” the company asks while adding that we will just have to “wait and see.”
Going on to share some key stats from last month, Bondora noted that the declining transaction trend they’ve been seeing these past few months is “due to the smaller number of investors using Portfolio Manager, Portfolio Pro, and the API.”
The company added that as “more and more investors opt for the easy, hands-off investing experience that Go & Grow offers,” it’s natural for there to be “fewer transactions” on the Secondary Market.
Bondora also mentioned that the API continues “to reign supreme, as it did in June.” It was “the only category that had an increase in transactions—climbing 7.0%,” the company revealed while noting that the Manual and Portfolio Manager transactions declined, “with 28.3% and 20.2%, respectively.”
Manual transactions, however, “still have the largest portion of transactions by far,” the report confirmed.
As stated in the report:
“Total current loan transactions were lower by 10.5% in July. This is much less of a decrease than the 27.2% decline in June. The only category that grew in July was again API transactions, which totaled €40,526 in June and €46,189 in July. Manual transactions at a premium remain the largest category for current loan transactions, although they did fall from €86,258 to €74,405.”
The report continued:
“After growing for 2 months, overdue loans have now declined again slightly in July. €19,381’s worth of overdue transactions took place last month, which is a 13.5% decline from June. Discount, Par, and Premium categories all saw slight declines on the month. But API transactions on Par increased by 8.3%.”
Defaulted loan transactions “mirrored” the downward trend that had been seen across the Secondary Market as transactions for this particular category fell around 30% to €13,971.56 in total, the Bondora team noted in their report.
They also pointed out that manual transactions continue “to make up the most transactions, with transactions at a discount increasing from June to July.” It “garnered €13,567.73’s worth of transactions, increasing by 29.5%,” the report revealed.
As noted in the report:
“A continued decline in Secondary Market activity simply proves that more and more investors are opting to grow their money the hands-off way with Go & Grow, rather than hands-on. The API category is still experiencing a growth spurt and reigning supreme for the 2nd month in a row. But this growth spurt is not enough to surpass Manual loan transactions, that still garner the most value by far.”
Bondora reminded its users that investors should “not seek higher returns from buying and selling loans on the Bondora Secondary Market.”
You may find out more about Bondora’s Secondary Market here.