guess there's no relief for the little guys..
The way I read Peter's statement above is that they are foregoing the BRV to assure a greater pool of retail investors and to capture more lending business from "traditional" lenders.
If I am interpreting that a correctly, I'd probably make the same business decision.
It's not about relief for the little guy, it's about capturing as much of the total available market as possible. I'd rather LC be available in all 50 States than just 26.
Yes, it increases our risk, but it also increases our opportunity for reward.
Can someone confirm that I understood properly, or that I've lost the plot?
-Jon
perhaps i am understanding this incorrectly. how does creating a bankruptcy remote vehicle jeopardize their blue sky exemption? from reading above, i thought such an exemption is dependent on being public. unless the creation of a brv jeopardizes their ipo, the two are unrelated.
prosper has a 'prosper funding' vehicle and probably intends to go public shortly after lc...i would speculate that lc is so focused on pushing out volume to boost their origination metrics (obv heavily reliant on institutional $) that they don't care to put in the work (which is understandably a lot if individual prospectuses are required). nonetheless, it's pretty indicative of their current priorities...
increased access by retail investors, under its current legal structure, does nothing to mitigate risk to current or any prospective (retail) investors...that very fundamental risk remains...i mean, otherwise, why wouldn't institutions be game to buy notes technically back by the platform's credit...
so not entirely sure what you mean about the "opportunity for reward"... sure, there may be more borrowers but if anything, citing "marketing reasons" for lowering borrower acquisition cost from IPO publicity is bullshit. what happens when everyone has access and it blows up? the retail investors get screwed the most (and many more of 'em). haven't we learned anything about tail risk in finance, haha

anyways, like you said, i'd probably also "make the same business decision" but we're in different positions..
full disclosure: invested in lc loans but letting my portfolio runoff