Bondora’s secondary market transactions drop again
Bondora saw a drop in secondary market transactions for the third consecutive month as investors continue to opt for automated investments.
Transactions in the European peer-to-peer lending platform’s secondary market fell by 31.7 per cent from January to reach €152,547 (£125,456) in February.
Bondora said the drop in activity “signals investors’ preference for Go & Grow’s automated investments” rather than the secondary market’s manual buying and selling approach.
The most significant decline was with portfolio manager activity, which has decreased since December and dropped by 53.7 per cent last month.
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Manual transactions fell by 20.4 per cent, slightly less than January’s 24.2 per cent, but still had the majority share of transactions (63.2 per cent) in February, which totals €96,359.
Meanwhile API transactions dropped by 43.5 per cent, following a 25.5 per cent increase the previous month.
Within Bondora’s secondary market last month, current loans still made up the majority of its largest share of transactions, with a value of €122,675, despite a 30 per cent monthly fall.
February’s overdue loan transactions totalled €19,271, a 28.5 per cent decrease from January and defaulted loan transactions fell by 56.3 per cent to reach €10,559.
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“February marked the third month of decreases in secondary market transactions,” Bondora said in a blog on its website.
“As we’ve mentioned previously, this decline in activity signals investors’ preference for Go & Grow’s automated investments rather than the secondary market’s manual buying and selling approach.
“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.
“But, as the secondary market activity is known to go up and down, let’s see if the activity will pick up again.”
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