Author Topic: Do you feel that good quality loans in Prosper are difficult to find these days?  (Read 6299 times)

Watermen

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When I started in Jan this year, I can still find good quality high risk loans.

Since last month, I find it almost impossible to find good quality high risk loans…I wonder if it is just me?

I know the loans increased, but many of them seems very poor quality to me.

DaveSch

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Yes.
I started in early February with Prosper and LC. I was on schedule with my money flowing to both. Then a month later the pickings on Prosper got really thin. I spend time there every day (several times a day) looking for medium (B-D) risk loans and not finding them as before. Many of the A loans aren't that wunderbar either.

Now, I have nearly 4 times the money invested in LC than I do with Prosper. Had I known this, I might have just gone with LC. But since I'm in, I'll keep searching (and hoping).

Dave

Fred

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I am not an active Prosper investor, but I do feel my Automated Quick Invest (AQI) has not been hitting enough loans lately. 

The cash from repayment has been accumulating to the level I have rarely seen before.

Dennis

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I've been a very active member of Prosper for 20+ months and I can safely that say the pickings now are the slimmest I've seen since I started.  The quality of borrower applications (based on my criteria) have gone down significantly, and interest rates on notes (investor return) have also gone down.  I wish now that I had been more aggressive in the beginning as I would have locked in higher returns then on better quality notes (again, based on my criteria).  I haven't lost faith yet though as I'm giving this new management team a little more time to work things out, but I'm not a very patient person.  One thing I hope they understand is that the longer they take, the more investor money they lose as no investor wants idle cash sitting around.  LC is currently absorbing investment that would have gone to Prosper if there had been something acceptable (by my criteria) to invest in. 

rawraw

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I think LC may be stealing the prime borrowers from Prosper.  I actually just funded a LC loan today which is a refi of a Prosper note.

Fred

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The last email I got re: "Thank you for your Quick Invest order" was 6 days ago.   :'(

The "browse all listings" page only shows 166 loans available today.

investforfreedom

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The good loans are snapped up by large investors often the first minute--in fact the first seconds--they come out.  Prosper hasn't implemented the "whole loan program" yet.   I have now more money going into LC than Prosper.  It remains to be seen whether the "whole loan program" is feasible for Prosper, given the smaller number of listings on their platform.   

agd

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The good loans are snapped up by large investors often the first minute--in fact the first seconds--they come out.  Prosper hasn't implemented the "whole loan program" yet.   I have now more money going into LC than Prosper.  It remains to be seen whether the "whole loan program" is feasible for Prosper, given the smaller number of listings on their platform.

I'm not really sure where you are getting your information from.  Based on the API, the Whole Loan Program appears to have been implemented on 4-12(though technically it may be in "pilot").  Currently close to 66% of the volume has been starting in the Whole Loan Program.  It appears that Prosper has increased their listing volume very substantially, to minimize the affect on the retail investors, though I would argue not enough.  From my metrics, it appears that this volume is indeed homogenous to that of the fractional volume.  Funding velocity is still high, but has come down measurably.  Listings being snatched up in seconds is rare, for the most part we're still talking minutes.

The current dynamics of the program mean that I'm investing $5k-$7k  a month (10%)less and achieving lower diversification than I would have otherwise(assuming platform volume between 3-12 and 4-11 would have been maintained) .  Despite this impact to my bottom line, as an investor I acknowledge the importance of the program as ultimately its a major contributer to Prosper becoming cash flow positive (something Prosper can't do on the backs of us retail investors alone).  This is evidenced by thier funding volume, which may hit $20MM for the month of April.  In my mind (and I've spent a lot of time analyzing data from both LC and Prosper) Prosper is still the place to play for the active/ROI focussed retail investor (automated or not).


investforfreedom

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The good loans are snapped up by large investors often the first minute--in fact the first seconds--they come out.  Prosper hasn't implemented the "whole loan program" yet.   I have now more money going into LC than Prosper.  It remains to be seen whether the "whole loan program" is feasible for Prosper, given the smaller number of listings on their platform.

I'm not really sure where you are getting your information from.  Based on the API, the Whole Loan Program appears to have been implemented on 4-12(though technically it may be in "pilot").  Currently close to 66% of the volume has been starting in the Whole Loan Program.  It appears that Prosper has increased their listing volume very substantially, to minimize the affect on the retail investors, though I would argue not enough.  From my metrics, it appears that this volume is indeed homogenous to that of the fractional volume.  Funding velocity is still high, but has come down measurably.  Listings being snatched up in seconds is rare, for the most part we're still talking minutes.

The current dynamics of the program mean that I'm investing $5k-$7k  a month (10%)less and achieving lower diversification than I would have otherwise(assuming platform volume between 3-12 and 4-11 would have been maintained) .  Despite this impact to my bottom line, as an investor I acknowledge the importance of the program as ultimately its a major contributer to Prosper becoming cash flow positive (something Prosper can't do on the backs of us retail investors alone).  This is evidenced by thier funding volume, which may hit $20MM for the month of April.  In my mind (and I've spent a lot of time analyzing data from both LC and Prosper) Prosper is still the place to play for the active/ROI focussed retail investor (automated or not).

Are you using AQI?  I'm not.  I am eyeing the listings like a hawk ready to pounce on any good ones at exactly 9:00AM, 5:00PM every weekday and 12:00PM in the weekends PST.   But every time I click on the "Invest" button, it is gone.  And they disappear in the first minute or even the first few seconds after I see the listings. Vermut said it was only starting in Beta mode for institutional investors, which I gather means you only see that appear as a data point, and the real effect of which remains to be seen for retail investors.

Vermut: "Whole Loans: In April we are launching a whole loan product in beta for our institutional lenders, which will be separate from our traditional pool of fractional loans. The beta version of this product is in test mode and we will communicate more details as they develop."  http://blog.prosper.com/2013/03/30/a-note-from-our-president-aaron-vermut-as-prosper-looks-to-the-future/

In a word, I don't see any benefit at all on my end as a retail investor, whether or not they have actually implemented it or not.  On the other hand, I am able to find a couple of good loans every day on the LC platform.

« Last Edit: April 22, 2013, 04:30:20 PM by investforfreedom »

dagilbe

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These past few months have been the worst collection of new notes that I have seen.  I want to put another 5.5K in my Prosper Roth but the selection has been so bad that I am afraid it would take me 6 months to invest the funds in $25 increments.  Hopefully things turn around but the poor selection is getting ridiculous. 

agd

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The good loans are snapped up by large investors often the first minute--in fact the first seconds--they come out.  Prosper hasn't implemented the "whole loan program" yet.   I have now more money going into LC than Prosper.  It remains to be seen whether the "whole loan program" is feasible for Prosper, given the smaller number of listings on their platform.

I'm not really sure where you are getting your information from.  Based on the API, the Whole Loan Program appears to have been implemented on 4-12(though technically it may be in "pilot").  Currently close to 66% of the volume has been starting in the Whole Loan Program.  It appears that Prosper has increased their listing volume very substantially, to minimize the affect on the retail investors, though I would argue not enough.  From my metrics, it appears that this volume is indeed homogenous to that of the fractional volume.  Funding velocity is still high, but has come down measurably.  Listings being snatched up in seconds is rare, for the most part we're still talking minutes.

The current dynamics of the program mean that I'm investing $5k-$7k  a month (10%)less and achieving lower diversification than I would have otherwise(assuming platform volume between 3-12 and 4-11 would have been maintained) .  Despite this impact to my bottom line, as an investor I acknowledge the importance of the program as ultimately its a major contributer to Prosper becoming cash flow positive (something Prosper can't do on the backs of us retail investors alone).  This is evidenced by thier funding volume, which may hit $20MM for the month of April.  In my mind (and I've spent a lot of time analyzing data from both LC and Prosper) Prosper is still the place to play for the active/ROI focussed retail investor (automated or not).

Are you using AQI?  I'm not.  I am eyeing the listings like a hawk ready to pounce on any good ones at exactly 9:00AM, 5:00PM every weekday and 12:00PM in the weekends PST.   But every time I click on the "Invest" button, it is gone.  And they disappear in the first minute or even the first few seconds after I see the listings. Vermut said it was only starting in Beta mode for institutional investors, which I gather means you only see that appear as a data point, and the real effect of which remains to be seen for retail investors.

Vermut: "Whole Loans: In April we are launching a whole loan product in beta for our institutional lenders, which will be separate from our traditional pool of fractional loans. The beta version of this product is in test mode and we will communicate more details as they develop."  http://blog.prosper.com/2013/03/30/a-note-from-our-president-aaron-vermut-as-prosper-looks-to-the-future/

In a word, I don't see any benefit at all on my end as a retail investor, whether or not they have actually implemented it or not.  On the other hand, I am able to find a couple of good loans every day on the LC platform.

How's your experience been since May 1?  I think the 75% rule must be helping as 89% of loans are still available after 10 minutes.  You're right, the middle of last month through the end was tough; 18.6% of all listings posted were gone within 60 seconds(through this month that number is down to 3.7%).

There are still a lot less D-HR loans which is another issue entirely...




ee1x

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It is certainly becoming more difficult to find loans at my desired risk level (typically around 20% rate) but I have noticed that if I am watching around the release times it isn't too difficult. I've still been able to put most of my cash to work, it is just taking slightly longer these days.
Investing since March 2012