Bondora’s summer slump continues as secondary market activity drops
Bondora’s secondary market transactions continued to tumble in July, as the European peer-to-peer lending platform’s summer slump continues.
Total secondary market activity decreased by 24.5 per cent in July, month-on-month, with just €104,846 (£88,576.52) transacted.
“The summer slump is still in effect regarding secondary market activity, with an overall tumble of 24.5 per cent in transactions,” Bondora wrote in a blog post to investors.
“Despite slight micro increases here and there, it was very clearly a low activity month for hands-on investors.
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“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 rebound every once in a while, let’s see if the activity will pick up again.”
€81,858 was transacted in the ‘current loan’ category of the platform’s secondary market – a 25.2 per cent decrease from June’s €109,499.
Portfolio Manager transactions decreased by 58.7 per cent, while API account transactions fell by 38.1 per cent and manual transactions were down by 2.6 per cent.
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The number of current loans sold at a premium made up the largest share (72.8 per cent) of the secondary market, despite a 28.8 per cent decline. The number of loans sold at a discount fell by 32.1 per cent.
Meanwhile, defaulted loans sold at par increased by 14.9 per cent from June; while the number of defaulted loans sold at a premium on the secondary market decreased by 19.6 per cent.
Defaulted loans sold at a discount represented 88 per cent of the total defaulted loan sales for July, despite a 41.8 per cent decrease in the number of transactions.
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