Mintos Secondary Market deep dive. The Secondary Market provides liquidity for investors, especially for longer-term loans. Investors can exit investments faster. They can also invest in loan shares (sold by other investors) that are with either discount or a premium.

Deep dive into the Secondary Market









Conclusions

• The Secondary Market has grown significantly over the years since Mintos was founded, showing the most rapid growth starting from 2017.
• In 2019 (until 29.05.) most sold loans (13.6%) have been issued by Mogo, followed by Varks (8.10%) and Kuki.pl (6.9%). Not surprisingly, all Top 3 loan originators contribute to the Top 3 loan types traded on the Secondary Market – personal loans, short-term loans, and car loans.
• In comparison with the Secondary Market in 2016, it has become way more diverse, meaning it’s easier than ever to create a well-diversified portfolio of investments in loans on Mintos.
• Together with the number of total active investors on Mintos has grown also the number of buyers on the Secondary Market which translates into stability when it comes to liquidity.
• The majority of loans and loan shares traded on the secondary market are with a term of up to 1year (12 months).
• The remaining term is calculated by the count of days between transactions on the secondary market and the closing date, for example, 27.71% loan shares are sold/bought when the remaining term is 1-12 months.
• It’s not possible to analyze loans (at loan level) sold by the remaining term because shares of one and the same loan might be a) sold by multiple investors at different times, b) bought from one investor by multiple investors in different dates.
• Sellers on the Secondary Market have earned € 70 941 by selling loans with a premium (with the average premium of 0.56%). Most loans (54%) on the Secondary Market are bought at par.
Mintos milestones for 2019