Assetz Capital trades £300m to date on secondary market
Assetz Capital has facilitated trading in second-hand loan parts of £300m on its secondary market since its inception, evidencing the demand by investors for liquidity ahead of natural loan repayments, and the matching demand for new investors to take the other side of those trades.
Trades on the secondary market (or aftermarket) have given a whole new range of investors access to loans in Assetz Capital’s various non-access accounts, including the Manual Loan Investment Account, Great British Business Account and Green Energy Income Account. Secondary market trading is important for those who find they need access to their cash sooner than the end of the loan term and also to assist in them rebalancing their portfolio diversification over time.
In addition to the £300m worth of loan units traded on the aftermarket, investors opting for the Access Accounts (such as the 30 Day Access Account or Quick Access Account), have traded more than £400m in redemptions with no delays beyond the access speed targeted by those accounts, although access times cannot be guaranteed.
To date, nearly a third (28%) of Assetz Capital’s loans have been traded through the aftermarket.
Stuart Law, CEO of Assetz Capital said:
“We’re proud to be one of the few peer-to-peer lenders to have such an active secondary market which is vital as our nascent industry continues to grow and mature. It is both important for investors to know that when they invest they are potentially holding loan investments to term (from one to five years typically) but at the same time, we think investors need sensible and low costs of accessing their capital early if necessary, subject to other lenders wanting to buy their loans. We have enabled this to a great scale and continue to charge zero fees on such access or aftermarket trades.”