European Lender Bondora Sees a Rebound in Secondary Market Activity

Secondary Market activity on Bondora increased for the first time since March 2022, “marking a turn in the tide.”

It grew by 21.5% to €182,665 transacted. Manual transactions “remain the strongest category.”

In May, all the categories increased, the team at Bondora noted. Portfolio Manager “leads the charge with an 87.3% increase compared to April.” API transactions “followed with 24.1% growth, and Manual transactions brought up the rear with 12.3%.”

However, Manual transactions “still account for the largest percentage of all transactions (49.3%).” Following in close 2nd is the API (41.6%), and Portfolio Manager “makes up the rest (9.1%).”

Current loans

Current loan transactions “increased overall by 14.5%, which contrasts with April’s 8.7% decline.” A total of €138,674 “was transacted, with impressive increases for API (23.1%) and Portfolio Manager (87.3%) transactions.” Manual transactions “were the exception, noting a decrease of 4%.”

Although noting a 2.6% decrease, loans “sold at a premium remain the most popular.” It made up a 60.4% share “of all current loan transactions, totaling €83,798.” Loans sold “at par grew by 58.6% and made up a 36.9% share.” Loans sold at a discount “made up 2.7%.”

Overdue loans

In May, overdue loan transactions “grew by 14.7%, totaling €19,788.” Again, loans sold “at a discount, at a premium, and at par, all had a relatively equal share of transactions, with ‘at par’ again taking the top spot.”

The API had “a mammoth growth rate of 49.4%.” API transactions “took a 36.8% share, equaling €7,287.”

Changing pace, manual transactions “increased this month by 1.1%, taking the majority 63.2% share with €12,500.”

Defaulted loans

In May, the overall decrease from the previous month “was reversed, with increases noted across all transaction categories.”

Overall, defaulted loan transactions “increased by 84.9% and totaled €22,914—nearly double what it was in April.” Manual transactions “had an 83.7% share, and API transactions had a 16.3% share.” The most significant increase “came from Manual transactions, growing by a whopping 92.8%.”

Loans transacted “at a discount dominates this category, with a 94.7% share of all default loan transactions.” Transactions at par “managed to take a 4.8% share, while those at premium obtained only a 0.5% share.”

The Secondary Market increases again

As has become the norm, the Secondary Market “see-saws in activity, with solid increases in May after decreases the month before.” It grew by 21.5% “to a total of €182,665 transacted.”

As more investors opt for the hands-free Go & Grow investment method, it’s natural “to see a drop in manual buying and selling of loans on the Secondary Market.”

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