Secondary Market Transactions Increase Significantly on Bondora Platform, Supported by Diverse Investment Growth

The Bondora secondary market experienced a “complete trend reversal” in August 2021. The European P2P lender reveals that there was a substantial 107.9% growth when compared to the month of July 2021.

This growth equates to “a total of €338,235 being transacted on the Secondary Market,” according to the update from Bondora.

The European lender also noted that the most significant growth factor, “by far, was a 1,139.3% increase in Portfolio Manager transactions, which totaled €51,978.” API transactions also “increased in a sizable way, up to €148,949, a 169.4% increase from July.”

The market update from Bondora further revealed:

“As a result, API transactions overtook Manual transactions as the most-used investment product on the Secondary Market. Manual transactions also were higher on the month, up 33.0%.”

Investors active on Bondora have also “opted to pay a premium for Bondora current loans on the Secondary Market.” There was a 35.5% increase “in premium current loan transactions and a 546.6% increase in transactions at par value,” the report from Bondora reveals.

Overdue loans

As noted in the report:

“Transactions of overdue loans were higher in August, but not as significant as the overall increase in Secondary Market transactions.”

A total of €24,007 in “overdue loans was transacted—a 23.9% increase MoM and the largest  increase “came from transactions at par value, which was higher by 141.4% to €12,743.”

Defaulted loans

As confirmed in the report:

“A total of €17,124 defaulted loans was transacted in August, up by 22.6% from July. Interestingly, investors transacted €2,414 for defaulted loans at a premium, an enormous 1,311.7% increase from the previous month.”

The Bondora Secondary Market had gone through a steady decline in transactions for several months as investors “gravitated toward the steady and hands-off investing of Go & Grow.”

But this past month of August saw “a complete trend reversal, with a 107.9% increase in total Secondary Market transactions.” At €148,949, API transactions were “the most popular” and Portfolio Manager transactions “increased by 1,139.3%, leading to the revival of the Secondary Market.”

The update also mentioned that investors should “not seek higher returns from buying and selling loans on the Bondora Secondary Market.”

In another announcement from Bondora, the company noted that after five straight months of  growth for investments via their platform, there was “a slight decline in the amount of capital invested on the platform in August.” In total, €11,340,100 was “invested in Bondora products in August, a small 2.5% decline from July.”

But the only product category to see a decline in investment “was Go & Grow, which was down 2.5% compared to last month.”

All other product categories “were higher” by the following MoM growth rates:

  • Portfolio Manager: +11.1%
  • Portfolio Pro: +3.3%
  • API: +13.6%

According to Bondora, this suggests that there”s been “diverse growth in our investment products.”

As noted in the report:

“The 2.5% decline in Go & Grow investment on the month led to a slight decline in the portion of Go & Grow compared to other product categories. Go & Grow accounted for 92% of all Bondora investment in August, down from 93% last month. Portfolio Manager grew from 3% of investment in July to 4% in August. Both Portfolio Pro (3%) and the API (1%) remained consistent with their total share of all investments.”

The report added:

“While Bondora investors most often prefer to have their capital working for them on the Bondora platform at all times, there may be times when money isn’t invested in Bondora products. When this happens, money is stored in the Bondora Wallet.”

The Bondora Wallet displays how much money or funds you currently have in your account that has not been invested. You may also “enable Auto-transfer to automatically invest the money in Wallet into Bondora’s most popular investment product, Go & Grow,” the company explained.

You may also choose to withdraw any funds in the Wallet to your verified bank account, the company noted.

Although Go & Grow investment declined for the month of August 2021—and led to a “cumulative 2.5% decline” in all Bondora investments—other product categories “rose to the occasion.” The update from Bondora further revealed that API investment was up around 13.6%, while Portfolio Manager investment was up 11.1%. Even Portfolio Pro recorded a 3.3% increase in August.

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