Online Lender Bondora Says Secondary Market Activity “Seemingly” Remains Unchanged

After two months of declining, Secondary Market activity on Bondora has reportedly picked up again, albeit “with a very slight 2%.”

As mentioned in an update from Bondora, a total of €257,149’s worth of transactions “took place in November, compared to €252,126 in October.”

Bondora pointed out that this “might look similar to last month, but there were a lot of changes underneath the surface.”

Bondora also mentioned that Secondary Market activity “seemingly remains unchanged, but underneath the surface, things changed.” API and Portfolio Manager transactions “increased, but Manual transactions declined by 17.0%.”

Portfolio Manager’s growth was “the most impressive, with a 99.0% increase, while the API gradually increased 15.6%,” the team at Bondora revealed. They also noted that Portfolio Manager still has “the highest value, totaling €36,880 in transactions.”

Current loans

Current loan transactions “took the bulk of all transactions, coming in at €200,023,” the update from Bondora revealed while adding that the API and Manual transactions took “an almost equal split of 40.7% and 40.9%, respectively, while Portfolio Manager took an 18.4% share of all current loan transactions.”

Bondora added that transactions “done at a premium were by far the most popular in November, making up 55.7% of all transactions.”

Overdue loans

In October, Secondary Market overdue loan transactions “totaled €23,960, down 43.7% from the previous month.” According to Bondora, this was mainly due to “a decline in loans transacted at a discount, which were 78.3% lower.”

Bondora further noted that “contrary to the rest of the overdue loan transaction categories, API transactions were higher, up from €6,069 to €7,701.”

Secondary Market overdue loan transactions “totaled €25,415, up 6.0% from October,” the report revealed while adding that loans at a discount and at par “increased, while loans at a premium declined.”

Overall, API transactions “increased, while manual transactions declined slightly.”

Defaulted loans

Defaulted loan transactions “increased by 2.4% to €31,710.”

In contrast to October (when there were almost no defaulted loans purchased at par value), in November, “almost half of all transactions were done at par value (€13,248).” Manual transactions “increased by 7.4%, while API transactions dipped by 35%,” the update from Bondora noted.

Slight increases in November

As stated in the report:

“Activity on the Secondary Market rebounded ever so slightly after two months of decline. Even though the API has shown a considerable increase in activity these past few months, Manual transactions remain the most active segment. Loans at premium had a month in the spotlight, so we’ll have to see whether this trend will continue in December.”

As always, Bondora reminded investors that they “should not seek higher returns from buying and selling loans on the Bondora secondary market.”

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