The Micro Loan Market has picked up in recent weeks, with nearly £50,000 worth of loans acquired since the start of March. It takes the total sales figure to over £400,000, approximately 18% of our total advanced funds.
We’re pleased with the liquidity in the marketplace as we realise an exit is important for some lenders.
With a range of premium and discount options for sellers, the most sought-after loans are commanding a healthy premium, but sellers should gauge where their loans would appear on the list before trying to sell if they are looking for a quick sale. For context, the average premium commanded so far has been 2.64%.
In the future, we expect the secondary market to become even busier, as a lot of our newest lenders take to the secondary market to build a diverse portfolio. We also anticipate larger institutions to look at the secondary market and acquire a spread of loans to experiment with the asset class. If the pattern follows that of the USA, institutions and professional traders will begin in the secondary market before looking at investing in the primary market using automated investment formulas.
We’re pleased with the liquidity in the marketplace as we realise an exit is important for some lenders.
With a range of premium and discount options for sellers, the most sought-after loans are commanding a healthy premium, but sellers should gauge where their loans would appear on the list before trying to sell if they are looking for a quick sale. For context, the average premium commanded so far has been 2.64%.
In the future, we expect the secondary market to become even busier, as a lot of our newest lenders take to the secondary market to build a diverse portfolio. We also anticipate larger institutions to look at the secondary market and acquire a spread of loans to experiment with the asset class. If the pattern follows that of the USA, institutions and professional traders will begin in the secondary market before looking at investing in the primary market using automated investment formulas.
