Author Topic: LC vs. Prosper - Where are you investing?  (Read 3351 times)

.Ryan.

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LC vs. Prosper - Where are you investing?
« on: November 21, 2016, 05:57:45 PM »
I'm curious as to which platforms (LC vs. Prosper) people are investing in notes. What's your current mix, and why?

Me: I started investing a few years back, and in order to minimize platform risk, decided to split my investment funds across LC and Prosper 50%/50%.

Although Prosper seems to be delivering a slightly higher return for my portfolio, I am increasingly becoming concerned regarding their health (CEO leaving, increasing losses, private company, etc.). Plus, I find their website woefully lacking in portfolio visibility/analytics.

I am thinking of shifting from an even split to going exclusively (or close to it) to LC. Lower returns, but I'm much more comfortable with them.

You?   

Rob L

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Re: LC vs. Prosper - Where are you investing?
« Reply #1 on: November 21, 2016, 06:20:42 PM »
I opened my Prosper account for the same reason (to reduce platform risk) and I invested in lower risk / lower return loans.
Got the lower returns alright, meaning my risk wasn't priced in adequately (at least from this lender's point of view).
I'll admit that I put it no personal effort into loan selection (strictly on auto-invest) so maybe I got what I deserved.
They changed their statements a while back adding in accrued monthly interest or something; never knew exactly what.
Then they poked a finger in retail investors eye by dropping out of Folio, so I wasn't feeling the love.
I stopped reinvesting a few months ago and am just letting the thing run off.
Whatever plans they have, I don't think retail investors are a big part of them. Just look at their web site. Pretty lame.
 

SLCPaladin

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Re: LC vs. Prosper - Where are you investing?
« Reply #2 on: November 23, 2016, 10:01:45 PM »
I started my foray into marketplace lending with Prosper. I had a good experience with Prosper, and still do. I am in the process of letting my portfolio wind down because of the same concerns you cite above. Having said that, my Prosper returns have always been higher than my LC returns. In some regards it seems as if Prosper has done a better job of underwriting because my filters are roughly comparable between the two platforms. What I love about Prosper is that they have a BRV (Bankruptcy Remove Vehicle). What I don't love is that I have concerns about their long-term viability and profitability (as much as I love having a BRV, I don't actually want it to be triggered). If Prosper made meaningful steps to signal that they were committed to retail investors and could allay some of the concerns about the health of the company, I would probably start deploying capital on the platform. After all, the increase in defaults that I have seen in LC have largely not materialized at Prosper.

nonattender

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Re: LC vs. Prosper - Where are you investing?
« Reply #3 on: December 01, 2016, 05:22:51 PM »
I'm investing in banks...
A little nonsense now and then is relished by the wisest men.

SLCPaladin

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Re: LC vs. Prosper - Where are you investing?
« Reply #4 on: December 05, 2016, 09:32:14 PM »
I'm investing in banks...

But which banks, and why? Is this a Trump play? An interest rate play? What is your thinking on this? Like, interest rates are going up, so net interest margins are higher and bank profits are going to be higher?

zazpowered

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Re: LC vs. Prosper - Where are you investing?
« Reply #5 on: December 11, 2016, 07:38:41 PM »
I have around 6k in LC and 2k in Prosper

SpoonKiller

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Re: LC vs. Prosper - Where are you investing?
« Reply #6 on: February 26, 2017, 12:11:04 PM »
I've been with Prosper since 2009, I've churned more than $100K worth of loans during that time.  I just sent them an email today that they were about to lose me as an investor and that I was going to let my account wind down.  They've taken away too many things over the past couple of years, it's just not interesting any more and I'm not seeing the returns they're telling me I'm getting.  Since just aren't adding up any more with them.  Of course it's going to take 5 years to run its course, so they've got plenty of time to get things back on track...