Why should I use the Secondary Market?
Portfolio Manager and Portfolio Pro is closed for new investments from 27 February 2023. If you invest using Portfolio Manager or Portfolio Pro, please note that the Secondary Market will remain open, and you’ll still receive loan payments from your portfolio. But you won’t be able to reinvest them into those two portfolios. However, you can transfer your portfolio to Go & Grow or Go & Grow Unlimited.
The Secondary Market has a wealth of useful features for multiple purposes. You may want to sell overdue loans in your portfolio, or pursue a strategy that requires very specific filters. To give you an example – there are a small number of investors at Bondora who have a strategy of buying defaulted loans at a very low price, with the plan to reap the rewards later on when the loans are generating a cash flow from recoveries. This strategy requires a lot of patience and nerves, so it is not suitable for everyone. It’s an extremely high-risk strategy – we would not recommend it unless you know what you are doing.
Of course, the activities in the Secondary Market can be fun. However, we cannot confirm that a high level of commitment and research will result in returns higher than our automated services. On average, the returns of investors who are very active in the Secondary Market are not competitive with those of the passive investors who bought their loans via Portfolio Manager or Portfolio Pro. Not to mention those investing via Go & Grow. What’s more, it’s considerably time-consuming to invest manually because it’s likely you will be checking out many loans individually.
Before starting, consider this and make sure whether it’s worth your time.
You may also plan to liquidate your Bondora portfolio completely and therefore want to sell all your loans. You can use the Secondary Market to do this. However, if you have a lot of loans, this can take longer. The quickest way is to use one of our other services, which will make the job easier. Like Portfolio Manager and Go & Grow.
Portfolio Manager can automatically sell your loans on the Secondary Market, without you having to do all the work. Please read the "Sell loans" section in the Portfolio Manager Guide for more information.
With Go & Grow, you do not sell your loans to other investors, but to Bondora, and you can immediately withdraw the amount once you accept our offer. Please note: this offer is not always available.
Remember: selling loans before maturity often results in a loss of interest or capital.