Author Topic: Member Dependent Notes  (Read 7067 times)

phanio

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Member Dependent Notes
« on: October 10, 2011, 03:21:25 PM »
Thinking about getting into social investing and ran across this term - here on the forum - "member dependent notes"

So, what are they, how are they found, and what is the best way to invest in them?

Would love to hear some insight from those that have profited with these notes.

Bilgefisher

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Re: Member Dependent Notes
« Reply #1 on: October 11, 2011, 09:48:09 AM »
I've been investing in prosper for almost 3 years.  Ive never heard that term.

Peter

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Re: Member Dependent Notes
« Reply #2 on: October 12, 2011, 05:50:11 PM »
Thinking about getting into social investing and ran across this term - here on the forum - "member dependent notes"

So, what are they, how are they found, and what is the best way to invest in them?

Would love to hear some insight from those that have profited with these notes.
That is simply the loans we investors invest in - these days they are officially called borrower payment dependent notes. This definition is from the Prosper prospectus (http://www.prosper.com/Downloads/Legal/Prosper_Prospectus_2011-10-07.pdf):
Q: What are our Borrower Payment Dependent Notes?
A: Our lender members may purchase Borrower Payment Dependent Notes, or “Notes,” from Prosper.  We will issue the Notes in a series, with each series dependent for payment on payments we receive on a specific borrower loan.  The proceeds of each series of Notes are used to purchase the borrower loan upon which that series of Notes is dependent for payment. Each series of Borrower Notes will have a stated interest rate equal to the final yield percentage, as determined by Prosper......
« Last Edit: October 12, 2011, 05:55:38 PM by Peter »
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