Lend Academy Network Forum
Prosper Discussion => Investors - P => Topic started by: RetailAnalyst_Help on November 02, 2020, 05:05:47 PM
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I am trying to decide if I should invest on Prosper, since LC will close down its retail channel. What do the NARs (and seasoned NARs) look like for y'all?
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I am trying to decide if I should invest on Prosper, since LC will close down its retail channel. What do the NARs (and seasoned NARs) look like for y'all?
I guess I'll let you decide your own definition of "good", but I have a seasoned NAR of 5.75% currently (and I believe it has ranged from around 5%-6%, more or less). I've had my prosper account open for around 5 years now, and currently have a 39/29/17/15 mix of B/C/D/E grade notes.
My experience with Prosper was much better than with LC (where my NAR is between 0.5% and 1.0%, with roughly the same mix and time frame), but I put very little effort into picking notes (I use(d) the auto-invest feature on both platforms).
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For me, Prosper reports 4.98%.
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I carefully pick my notes though I have not always. I've really learned to avoid lower income and high balance borrowers.
A 6 year old non-IRA that I'm not reinvesting in is at about 3.86% all seasoned.
A 3 year old IRA where I am reinvesting is 5.7% seasoned and 5.85% all notes
Both are as reported by Prosper. One problem with Prosper's reported returns is that they don't really account for delinquencies until the notes are written off. Depending on the risk of your mix this overstatement can be substantial. Prosper uses grades AA-E and HR for high risk. Both my Prosper portfolios are pretty low risk approximately
AA-5% A-35% B-35% C-15% D-HR-5%
For comparison my 4 year old LC IRA is reporting 5.3% using roughly the same strategy even though I ran it on autopilot when I first dumped the funds in there and the LC return was between 2-3% for a long time.
Another thing that I don't like about Prosper is that their loan information is much less granular. Income categories for example are annual income 0-25K, 25-50K, 50-75K, 75-100K and over 100K. In today's world I would like to know the borrower's income more precisely and in many areas the 100k income really is not enough to fund the average lifestyle and loan repayments. LC by contrast reports a fairly specific monthly income amount.
Overall I am happier with LC and I'm sorry to see it go. I don't think that I will move LC funds to Prosper.