Author Topic: Is Prosper turning around?  (Read 11577 times)

Fred

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Re: Is Prosper turning around?
« Reply #15 on: April 25, 2013, 06:48:15 PM »
End of the month slowdown?

For a while I thought you meant "End of [the month slowdown]?", when in fact (I assumed) you meant "[End of the month] slowdown?"   :-\

Anyway, I am beginning to care less about Prosper.  My AQI have never hit any loans for the past 2 weeks, and cash from repayment is piling up.

If there is a turn around with Prosper, I do not think it affects retail investors much.

Bilgefisher

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Re: Is Prosper turning around?
« Reply #16 on: April 26, 2013, 09:07:09 AM »
Sadly, I am seeing the same thing.

MarinBB

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Re: Is Prosper turning around?
« Reply #17 on: April 26, 2013, 08:38:18 PM »
And you're correct. Listings and originations are both way up in April, but the majority of the loans are being taken down in the whole-loan pool and are not accessible to retail investors. Of the loans that do make it into the fractional pool, most are quickly taken down by API bidders and are available for only minutes on the website.

To give you an idea of what's going on, 59 new listings were added this evening: 25 in the whole loan program and 34 in the fractional pool. Within 10mins of 5pm PT, all of the 25 whole-loan pool loans were filled and 11 of the fractional pool loans were filled. That's 61% of the evening's loans. It's good news for Prosper but, yes, relative to 1 month ago, the number of loans accessible to retails investors is down by ~50%. Keep in mind that the loans that get filled quickly are of higher quality than the ones that remain. The leftover ones are available precisely because others chose not to bid on them.


investforfreedom

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Re: Is Prosper turning around?
« Reply #18 on: April 26, 2013, 09:56:00 PM »
And you're correct. Listings and originations are both way up in April, but the majority of the loans are being taken down in the whole-loan pool and are not accessible to retail investors. Of the loans that do make it into the fractional pool, most are quickly taken down by API bidders and are available for only minutes on the website.

To give you an idea of what's going on, 59 new listings were added this evening: 25 in the whole loan program and 34 in the fractional pool. Within 10mins of 5pm PT, all of the 25 whole-loan pool loans were filled and 11 of the fractional pool loans were filled. That's 61% of the evening's loans. It's good news for Prosper but, yes, relative to 1 month ago, the number of loans accessible to retails investors is down by ~50%. Keep in mind that the loans that get filled quickly are of higher quality than the ones that remain. The leftover ones are available precisely because others chose not to bid on them.

That's why I am skeptical as to whether the separate loan programs will work for Prosper because they have a much smaller pool of loans than LC.  The large investors could easily absorb all of the best loans in minutes with or without the separate loan pool programs.   Now with separate pools, and with so many retail investors competing for the best loans in the fractional loan pool using AQI, I am not surprised that most of the higher quality loans are gone quickly.   So you end up pleasing neither group of investors.

I know many people don't have the time to manually screen each loan, but allowing AQI on a platform with a small loan pool like Prosper's means that those of us who want to take the time to screen loans lose out.  (That is likened to the front-running practice in day trading and high-frequency algorithmic trading in the financial markets.)

I am just about to give up on Prosper. 
« Last Edit: April 26, 2013, 09:58:06 PM by investforfreedom »

Fred

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Re: Is Prosper turning around?
« Reply #19 on: April 26, 2013, 11:15:32 PM »
Of the loans that do make it into the fractional pool, most are quickly taken down by API bidders and are available for only minutes on the website.

Yikes! 

It seems API is of higher priority than AQI.  So what is the purpose of Prospoer's AQI then?

Dennis

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Re: Is Prosper turning around?
« Reply #20 on: April 27, 2013, 02:11:46 AM »
From Aaron Vermut > Posted 4/03/13 −

"For those of you with questions about our new whole loans product, we will be posting a more thorough update after the completion of the beta period.

What we can tell you now in order to answer your questions is that these loans will be randomly selected and distributed in the whole loans pool for 1 hour only. We donít anticipate this to crowd out our individual, retail investors or to change the risk profile of loans available across the platform. Additionally, we are simultaneously ramping up volume in order to provide more than enough loans for both pools."

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As of this writing, there are zero HR, zero E, one D, five C, and nine B notes to choose from.  I've actually seen even fewer notes than that on the Prosper platform this week.  In the 21 months I've been with Prosper, I've never seen a poorer selection.  To me it looks like the retail investor is absolutely being squeezed out.  Where is the ramped up volume???

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From Aaron Vermut. posted 4/05/13

"We are taking a measured approach to ramping up our marketing to bring more borrowers on the platform. Keep watching the numbers and you'll see what I am talking about!"

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I must be looking at the wrong numbers since I really don't see what he's talking about.  What I've seen for the last 2 weeks is the worst availability of loans I've ever seen at Prosper.  Maybe I haven't given the new management team enough time, but what I'm seeing so far isn't very promising.

MarinBB

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Re: Is Prosper turning around?
« Reply #21 on: April 27, 2013, 12:46:43 PM »
Your guess is as good as mine on the AQI. It's impossibly slow; I switched over to the API ~18 months ago and haven't looked back. I really hope that they fix-up the AQI - it simply can't be that complicated and it would really help out retail investors who have jobs to attend to intraday. I've thought about licensing out my API bidder, but Prosper doesn't allow one to place bids on behalf of others and I'm not sure whether the size of the market ever justified the time necessary to prepare a proper software package.

Bidding via the API may become much easier this week when they release their new API. It uses RESTful rather than SOAP; RESTful is much simpler and more widely supported. The queries are URL-based so I expect the API to be more accessible to people who may not have an extensive CS background.