European P2P Lending Platform Bondora Reports Decline in Secondary Market Transactions

European P2P lending platform Bondora notes that for the second straight month, the Secondary Market transactions via the platform have decreased.

Bondora wrote in a blog post dated November 15, 2021 that while a total of €311,848 was transacted on the Secondary Market in September of 2021, “transactions totaled €252,126 in October.”

As mentioned in the update from Bondora, the Secondary Market transactions “declined by 19.2% overall.” Meanwhile, manual transactions, which accounted for 60.6% of all transactions, were “lower by 31.1% on the month.” And Portfolio Manager transactions “were higher on the month, increasing by 30.1% to €18,533,” the report noted.

Current loans

As stated in the report:

“Unlike the overall trend of the Secondary Market, current loans grew by 4.7% to €197,192. This month, investors were more likely to purchase current loans at a premium, which grew by 8.9%. It also accounted for 69.4% of all current loan transactions. In contrast, transactions done at par value and at a discount were down by 1.7% and 32.3%, respectively.”

Overdue loans

The report added:

“Secondary Market overdue loan transactions totaled €23,960 in October, down 43.7% from the previous month. This was primarily due to a decline in loans transacted at a discount, which were 78.3% lower. Contrary to the rest of the overdue loan transaction categories, API transactions were higher, up from €6,069 to €7,701.”

Defaulted loans

As noted by Bondora, defaulted loan transactions were “down by 61.7% to €30,973.” This month, investors were less likely to “purchase defaulted loans at par value, with only €471 in par value transitions conducted, a decline of 89.2%. Manual transactions also saw a significant decline, down by 64.9%.”

Some ups, some downs

As mentioned in the update from Bondora, overall, the platform’s Secondary Market experienced a decline “of 19.2% in total transactions.” But there were some areas (like current loans) that were “higher when compared to September.” This up-and-down month may be difficult to analyze for deeper trends, and it may be “wise for investors to take note of the Secondary Market over the next several months to see if longer-term trends emerge,” the company added.

Bondora also reminded users that investors should “not seek higher returns from buying and selling loans on the Bondora secondary market.”

To learn more about the Bondora Secondary Market, check here.

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