The YTM parameter (note: abbreviation composed of the initial letters of Yield to Maturity) indicates the expected annual percentage return on the investment in a loan if it is held until the last payment is due. On the BONDSTER platform, you will see this indicator for loans offered on the Secondary Market and it serves to protect investors from investing in non-performing loans.

The YTM parameter includes possible surcharges or discounts and is based on the assumption that future loan repayments will be made according to the repayment schedule. If a loan is in default, it is assumed that the repayment will be made the following day.

If you decide to offer loans for sale on the Secondary Market, setting the surcharge too high may result in a negative YTM. Such loans cannot be placed on the Secondary Market. If this happens, the surcharge will have to be reduced so that the YTM is at least a zero.

If the YTM decreases to negative after a loan is published on the Secondary Market (note: interest is paid over time and the YTM decreases, and at some stage may fall below the surcharge value of the placed loan), the loan will be withdrawn from the Secondary Market. You will be notified of the loan withdrawal by email.

You can offer a loan on the Secondary Market for sale for 90 days. If it doesn’t sell within that time frame, you can offer it again. While the loan is being sold, you can withdraw it from the Secondary Market at any time, adjust the parameters (discount/surcharge) and offer it for sale again.

It is your own decision and it depends on your situation. If you don’t need the money quickly, you may try offering the loan with a surcharge – especially if the type of loan from a particular provider is no longer available on the Primary Market. If you are unable to sell the loan at a surcharge on the Secondary Market, you can try offering it at a discount.

On the Secondary Market, you can offer for sale any loan where the acceleration clause has not been activated, it has not been written off, terminated, or over 60 days past due.

You can access the Secondary Market by logging into your investor account via the My Investments tab, where you can directly offer the loans you have invested in. To place a loan in your sales cart, click the SELL button (you can sell one or more loans at a time). Once in the cart, you can set a discount/surcharge for each loan individually or in bulk. Then, in the second step in the settings, check the Agree to Terms box and click OFFER FOR SALE.

When using the Secondary Market, the selling investor pays a one-time fee of 0.5% of the value of each loan that is sold on the Secondary Market. This fee is not paid when placing a loan on the Secondary Market, however, but is deducted only if the loan placed is sold. An investor who buys a loan on the Secondary Market does not pay any fees.

When you sell your investments on the Secondary Market you can sell them at a profit, at a loss or at the same price. At the same price simply means that you will offer an investment worth CZK 100 to other investors for exactly CZK 100. At a profit, you will sell the CZK 100 investment at a higher price. For example: If the original value of the investment is CZK 100 and you want a profit of 5%, you will offer the investment on the Secondary Market for CZK 105. With a loss, the opposite is true and the investment will be sold on the Secondary Market for a lower price than the original one. For example: if the original value is CZK 100 and the discount is 5%, you will offer the investment on the Secondary Market for CZK 95. This will allow you to get your invested money back early, or perhaps withdraw from an investment where the borrower is in default.

When you decide to place a loan on the Secondary Market, nothing changes until the loan is sold. Once the sale has taken place, you will stop receiving interest from the loan. If you buy an investment on the Secondary Market, you will instead start receiving interest from the day you buy it.

The Secondary Market is a place where investors can sell their current investments to other investors on BONDSTER. It thus offers additional space for investment and portfolio diversification. Selling in the Secondary Market provides investors with the possibility of higher liquidity. When they need their money sooner, they can sell part or all of their investment portfolio here. When selling on the Secondary Market, it is possible to increase the price of the loan and thereby earn more or, on the contrary, to make the loan cheaper and sell it to other investors more quickly. The Secondary Market offers buyers access to potentially interesting offers from sellers. Buyers can thus get access to the purchase of investments under favourable conditions or to interest rates that may not even be available on the Primary Market at the given moment. The Secondary Market is covered in detail in one of our tutorial videos at https://youtu.be/EfF3b3Iq_hI?feature=shared