2019 ends with even more secondary market transactions

December brought a significant jump in Bondora secondary market transactions, marking the second straight month of increased activity on the secondary market. A total of €899,113 was transacted in December, a jump of 14.2% from November. All three product categories were higher on the month, with manual transactions growing the most, up by 20.0% to €357,624.

Sec Market total volume - December 2019

Current Loans

Transactions of current loans on the secondary market were higher by 5.9% to €776,797. Counter to the overall trend; manual transactions decreased to €241,923, fueled mostly by a 13.5% decrease in current loans purchased at a premium.

Sec Market current loans - December 2019

Overdue Loans

After decreasing by 40.3% last month, overdue loan transactions changed to €46,088 in December. There was a significant jump in loans purchased at a premium, totaling 14,773 on the month, representing 32.1% of all overdue loan transactions.

Sec Market overdue loans - December 2019

Defaulted Loans

Defaulted loan transactions increased, surpassing transaction totals for overdue loans in December. All told, there were €76,227 in Bondora secondary market defaulted loan transactions, a growth of 201.9% month-over-month. As usual, the majority of these transactions were done manually, but this month there was a sizable increase of defaulted loans purchased at par value. Of all defaulted loan transactions, 30.7% were purchased at par value, compared to 5.3% in November.

Sec Market deafulted loans - December 2019

Secondary market defaulted loan transactions increase

Rarely do defaulted loan transaction volumes surpass overdue loan volumes so easily. This made December an interesting month for the Bondora secondary market, where, all told, more money was transacted than previous months.

Always remember, investors should not seek higher returns from buying and selling loans on the Bondora secondary market.

You can learn more about the Bondora secondary market here, or contact an experienced Investor Relations Associate at [email protected].

*As with any investment, your capital is at risk and the investments are not guaranteed. The yield is up to 6.75% p.a. Before deciding to invest, please review our risk statement or consult with a financial advisor if necessary.

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