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 secondary market trades, the company confirmed while noting that a total of € 162,695 was traded, representing a drop of 12.9% in MoM compared to June 2021 volumes.
Like declared in the Bondora update, it is notably “lower than the 22.9% drop from May to June”. So maybe the “secondary market rebound is imminent?” »Asks the company while adding that we will only have to« wait and see ».
Then sharing some key stats from last month, Bondora noted that the downward trend in transactions they’ve seen in recent months is “due to the smaller number of investors using Portfolio Manager, Portfolio Pro and the API.”
The company added that “more and more investors are opting for the easy, hands-off investment experience that Go & Grow offers” it is only natural that there are “fewer transactions” in the secondary market. .
Bondora also mentioned that the API continues to “reign supreme, as it did in June”. It was “the only category that saw an increase in transactions – climbing 7.0%,” the company revealed while noting that the Manual and Portfolio manager transactions decreased, “with 28.3% and 20.2%, respectively”.
Manual transactions, however, “still have by far the largest share of transactions,” the report confirmed.
As stated in the report:
“Total outstanding credit transactions fell 10.5% in July. This is a much smaller drop than the 27.2% drop recorded in June. The only category that rose in July was API transactions again, which totaled € 40,526 in June and € 46,189 in July. Manual premium transactions remain the most important category for ongoing credit transactions, although they have increased from € 86,258 to € 74,405.
The report continued:
“After increasing for 2 months, delinquent loans decreased again slightly in July. € 19,381 overdue transactions took place last month, down 13.5% from June. The Discount, Par and Premium categories all registered slight declines during the month. But API au pair transactions increased 8.3%. “
Defaulted loan transactions “mirrored” the downward trend seen in the secondary market, with transactions for this particular category falling by around 30% to € 13,971.56 in total, the Bondora team noted in his report.
They also pointed out that manual transactions continue “to constitute the largest number of transactions, with transactions with a discount increasing from June to July.” He “garnered € 13,567.73 in transactions, up 29.5%,” the report revealed.
As stated in the report:
“A continued decline in secondary market activity just proves that more and more investors are choosing to grow their money in a practical way with Go & Grow, rather than in a practical way. The API category is still experiencing a growth spurt and reigns supreme for the second consecutive month. But this growth spurt is not enough to outperform manual lending transactions, which still generate the most value by far. “
Bondora reminded its users that investors should “not seek higher yields by buying and selling loans on Bondora’s secondary market”.
You can find out more about the Bondora secondary market here.