Welcome to March’s Secondary Market statistics blog post. Recently, we talked about the most common methods used to purchase current, overdue and defaulted loans and whether these transactions were made at a premium, discount or par value.
Below, we are going to do the same based on the statistics received in March.
Total Volume
In March 2018, the total amount of investments purchased through the Secondary Market reached totalled €736,426.89, an increase of approximately 7% since last month. Whilst the order of the most popular methods for making the purchases did not change, the total share and distribution saw some variances compared to previous months. In March, the percentage of manual investments made increased by nearly 3% since February although the share of the total decreased by 1% to 32%. Similarly, the amount of investments purchased via the API on the Secondary Market increased by 36% and the total share for the month increased to 25%. Along with the increases in investments purchased manually and via the API, the Portfolio Manager saw a reduction of over 6% and held approximately 43% of the total share.
Current loans
In line with previous months, the Portfolio Manager still leads the way in purchasing current loans at a par value. On the other hand, manual investors were the most successful at purchasing current loans at a discounted value. In addition to this, manual investors purchased €110,284 of current loans at a premium, compared to €65,155.02 via the API. Whilst there is essentially no priority given to the Portfolio Manager tool for any loans, it is very fast and is still the most popular investment method among all of Bondora’s customers. As a reminder, no priority is given to any investment method (including the Portfolio Manager) and is not biased based on an investor’s portfolio size.
Overdue loans
In March, we saw an increase of 18% in the total amount of overdue loans purchased through the Secondary Market. The majority of these transactions were completed manually and at a discount.
Defaulted loans
Overall, the total amount of defaulted loans purchased through the Secondary Market decreased by over 10% in March compared to the previous month and even more so since January and December. The most notable change here in March is the amount purchased at a premium, in February this figure stood at €5,589 where as in March this decreased to €32.56, nearly all of which was completed manually. Approximately 99% of defaulted loans purchased via the API were completed at a discount. A unique strategy used by a small number of investors is to purchase defaulted loans with a significant discount with the plan to reap the rewards once the collection and recovery process begins to generate a cash flow.
