Platforms: Secondary market can increase attractiveness of P2P financing as an asset class
This is especially relevant at this time, when some investors may need to sell their notes to meet their cash flow needs. With potentially fewer new note issuances due to the tough economic conditions, a secondary market could provide investors with the opportunity to build their portfolios. It could also encourage them to buy notes with longer tenures as they will have the flexibility to sell these on the secondary market at any time.
“This is an announcement that we welcome. We had already been preparing for a secondary market prior to the announcement. Now, we are mapping our system against the guidelines,” says Kristine Ng, CEO of Peoplender Sdn Bhd, which operates P2P funding platform Fundaztic.
If the platform’s application for a secondary market is approved, it could be launched in the next few months, she adds.