Author Topic: Prosper Folio Investing Back On?  (Read 8960 times)

YoungFred

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Prosper Folio Investing Back On?
« on: November 21, 2019, 06:21:08 PM »
Noticed today that there is a new field under the Pending tab of my Prosper Account named: Secondary Note Purchases.

Out of curiosity, visited the URL formerly designated for Prosper's link to Folio: https://www.prosper.com/invest/trade.aspx. Before today, it displayed a message stating that Prosper had terminated its relationship with Folio back in 2016. Seems to be back on, however.

Does anybody have any further details on this?

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Re: Prosper Folio Investing Back On?
« Reply #1 on: February 15, 2021, 12:07:06 AM »
Hi YoungFred,   

Are you able to use Prosper's FolioFn Secondary Note market?  I invested with Lending Club for several years. Unfortunately,
LC has closed to retail investors and I was hoping to find another P2P with a FolioFn market.

Debt Free

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Re: Prosper Folio Investing Back On?
« Reply #2 on: February 15, 2021, 07:29:34 PM »
Folio was sold to Goldman Sachs.  Goldman Sachs then sold it off to Interactive Brokers (IBKR) which I happen to hold accounts in.  Subsequently IBKR now offers "senior notes" in $1,000 increments with a $10,000 minimum and available to accredited investors only.  Not sure if it's related to Folio, but nothing compared to LC or Prosper.

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Re: Prosper Folio Investing Back On?
« Reply #3 on: February 16, 2021, 02:20:02 AM »
Thanks for informing me about Folio, Goldman Sachs and IBKR. How does the "senior notes" work? Does Prosper have a FolioFn Secondary Note market?  How can I learn more about an IBKR account?  What qualifies as an accredited investor?  Thanks for any investment advice.


Fred93

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Re: Prosper Folio Investing Back On?
« Reply #4 on: February 17, 2021, 12:22:05 AM »
If you go to the Interactive Brokers web site, the program is named "IBKR NOTES".  I believe the IBKR notes program is unrelated to folio.  This is a program where customers can get a higher interest rate on cash in their accounts if they loan the money to Interactive Brokers.  Interactive Brokers had this program a few years ago, and recently reinstated it.  After you have an account, you can "enroll" in this program by filling out a form. 

I enrolled a few weeks ago.  Got a message just today that some notes are becoming available at 1% for 3 months.

The rate is not terribly exciting.  Better than letting cash sit around.  Similar after-tax to a Vanguard short-term muni fund. 

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Re: Prosper Folio Investing Back On?
« Reply #5 on: February 17, 2021, 03:31:27 AM »
Thanks Fred93.  For many years while investing in LC, I used to read some of your consummate and informative posts. 

Sure, 1% for 3 months is considered good these days for interest.  Is it possible to have higher than 1% return for longer term Notes? Will they offer longer term Notes with higher return?
OK, I found the "IBKR Notes" FAQ. OK, this is the area I was reading:
         1. "The IBKR Notes Program provides qualified investors an opportunity to earn higher interest on short-term investments to be offered periodically.  IBG LLC intends to offer from time to time senior Notes. The U.S. dollar denominated Notes will be issued at face value in $1,000 increments and the minimum subscription is $10,000. The Notes will mature no later than the 30th day following issuance but may be redeemed sooner. The Notes will pay a fixed rate of interest, which will be set by adding a spread to the effective Federal Funds rate as reported by the New York Federal Reserve Bank on the morning of the date the Notes are sold to the purchaser. The minimum Rate will be 0.50% per annum, and all interest will be due and payable upon the earlier of the date of redemption or maturity of the Notes.
2. The interest rate on the Notes varies. At present it is 1%. The minimum interest rate for a Notes issuance is 0.5%. When there is a new Notes issuance, IBG LLC announces a Spread rate at least two days in advance. The Interest Rate for an issuance is the Spread Rate plus the Benchmark Rate, which is the Federal Funds Rate on the morning of the new issuance. The current Spread is the rate that, when added to the Benchmark Rate, will result in an interest rate of 1.0%.

Thanks Again for the knowledge.