Author Topic: Expect Increased Supply of Notes  (Read 202 times)

YoungFred

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Expect Increased Supply of Notes
« on: October 12, 2020, 01:02:19 PM »
From Prosper:

In light of recent news that LendingClub is closing its Notes platform effective December 31, 2020, we want to reassure you that Prosper remains committed to growing its retail Notes offering.

We know many of you invest on both Prosper and LendingClub's platforms. We always aim to match the supply of Prosper Notes available for investment with investor demand, and are prepared to increase the supply of Notes in response to additional inflows as investors re-allocate across platforms.

Rob L

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Re: Expect Increased Supply of Notes
« Reply #1 on: October 12, 2020, 07:51:04 PM »
From Prosper:

In light of recent news that LendingClub is closing its Notes platform effective December 31, 2020, we want to reassure you that Prosper remains committed to growing its retail Notes offering.

We know many of you invest on both Prosper and LendingClub's platforms. We always aim to match the supply of Prosper Notes available for investment with investor demand, and are prepared to increase the supply of Notes in response to additional inflows as investors re-allocate across platforms.

Well that's just dandy. Then why did Prosper shutdown their secondary market (Folio) if they are at all interested in retail investors?
It was the proverbial slap in the retail investor's face. Even a bank CD can be cashed in early for a penalty. Liquidity has value.
The day Prosper dropped Folio was the day I bought my last Prosper Note. Now Goldman owns Folio so what can/will Prosper do to replace it?


macroman7799

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Re: Expect Increased Supply of Notes
« Reply #2 on: October 12, 2020, 09:42:57 PM »
Yeah I don't see any stampede of investors to Prosper. I wouldn't be surprised at all if Prosper pulls the plug on retail within a year or so, especially because the market had a positive reaction to Lending Club's move.

I don't so much mind the lack of a secondary market, I knew when I invested that I was looking at a minimum 5 year payout schedule. My P2P investments are in IRAs so I was thinking about them like annuities. When I am ready to start drawing from them I just quit or slow reinvesting and start the withdrawals.

Now if the companies decide they don't want to maintain the platform that kindof goes to %h*&.
« Last Edit: October 12, 2020, 09:50:17 PM by macroman7799 »

AnilG

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Re: Expect Increased Supply of Notes
« Reply #3 on: October 13, 2020, 06:03:11 AM »
I doubt Prosper has a reason to pull the plug on retail platform yet. They could have done that when they accepted funding from private equity. I am sure they will be watching LC transition to banking closely.

The market is going to reverse itís opinion on LC as bad earnings report come out next few quarters. LC is going into a very competitive segment with huge players like GS Marcus, Ally, JPM etc. LC has no moat in its new market to attract enough retail funding and be competitive with large players. I will give LC at most 3 years before plugs are pulled and sold for pennies.

Yeah I don't see any stampede of investors to Prosper. I wouldn't be surprised at all if Prosper pulls the plug on retail within a year or so, especially because the market had a positive reaction to Lending Club's move.

I don't so much mind the lack of a secondary market, I knew when I invested that I was looking at a minimum 5 year payout schedule. My P2P investments are in IRAs so I was thinking about them like annuities. When I am ready to start drawing from them I just quit or slow reinvesting and start the withdrawals.

Now if the companies decide they don't want to maintain the platform that kindof goes to %h*&.
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Anil Gupta
PeerCube Thoughts blog https://www.peercube.com/blog
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