Prosper is Hosting a Free P2P Lending Webinar This Thursday

If you are a Prosper investor you have probably received an email about it already. If not, then I guess you know about it now. Prosper is hosting a free webinar for investors this Thursday, August 18 at 11am PDT (2pm EDT) to discuss the role of social lending as an investment alternative amid volatile financial markets.

You can read all the details on Prosper’s blog post published earlier today. Two of the top executives at Prosper will be conducting the webinar: Jim Catlin, the Chief Risk Officer and Joseph Toms, the Chief Investment Officer. This will be a unique opportunity for investors to hear from and ask questions of the senior managers at Prosper.

I will be attending this webinar and I hope you will consider it as well. You don’t have to be a Prosper investor to attend. Here is the link to register for it on Gotomeeting.

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Dan B
Dan B
Aug. 17, 2011 9:57 pm

Perhaps someone should sign up & pretend to be worth-blanket. He/she can then ask the Chief Risk Officer how his 2+ month old account with only 476 notes that have made 1 or 2 payments………….can already have 18 lates. That’s 18 after 2 months! Then when you get some canned BS answer, you can demand hos resignation.

Dan B
Dan B
Aug. 18, 2011 5:06 pm

I would have asked………if I believed that the answer had a chance of being even a bit illuminating, or had any confidence in it’s truthfulness, or if I had any interest whatsoever in using Prosper as an investment in the future. But since my interest in Prosper is akin to someone who looks out the window while driving past a car wreck, I just don’t see the point. I prefer coming here & throwing the occasional jab at them. You see it’s not that difficult to just tell the truth. 🙂

Shawn
Shawn
Aug. 18, 2011 5:27 pm

Well, I’m pretty happy with it, since my returns with average age of about 10 (low considering I just funded a lot of new loans recently) months is 21.21% =) Better than savings/CDs and better than the market right now…

~Shawn
Prosper lender “shawnw2”

Dan B
Dan B
Aug. 18, 2011 11:24 pm

Pretty happy? You should be ecstatic. Because as sure as the sun will rise tomorrow, you’re never going to get 21% a year with CDs or 21% a year with the market long term. Then again, no offence but it’s highly unlikely that anyone’s going to get 21% at Prosper long term either so…………………..

Dan B
Dan B
Aug. 19, 2011 1:47 pm

I’m opposed to this looking back into historical data…………….. but only so far back & then only this or that parameter. If you want to look back, then look back at it all. So when I look back at Prosper I see crap performance overall. Even Shawnw2 performance isn’t really 21%……………it’s 14% overall. And as much as he is outperforming right now, he was also underperforming in the past. So let’s not get too excited.

And as far as looking into the future, what future does Prosper really have? A company that has no prospect of making money in the near or even not near future. A company that is having some serious problems finding new investors &…………. new borrowers, no less. A company with a serious credibility problem. I could go on but I think I’ve made my point.

Dan B
Dan B
Aug. 19, 2011 4:14 pm

Peter…….In my first 12 months at Lending Club I had 6 defaults out of 400+/- notes. From month 13 to 21 which is the present, I’ve had zero defaults out of 500+/= notes. Given that my investment methods changed dramatically after the 12th month in DanB 2.0 ( (and my performance confirms this improvement), do you still think we should give as much weight to the performance of loans in DanB 1.0 as we do in 2.0? Do you think it would be fair or a bit disingenuous for me to report DanB 2.0 without also mentioning the results in DanB 1.0?

Shawn
Shawn
Aug. 19, 2011 9:23 pm

@Dan and Peter’s earlier comments… well, yes I am ecstatic, and yes I also realize that returns could go down. Though a point to note is that I think they’ll go down in time when rates start to go down for borrowers, which implies 2 things. First, I believe that it is possible to continue to earn great returns on Prosper and to continue to ‘beat the marketplace’ with low defaults, and second, I believe that Prosper will continue to be a viable and excellent option for time to come. And Peter, the >15% rate is one I was going to mention too for being a highly probably and realistic goal for long term on Prosper. Either way, I think it’s a great option for great returns that aren’t necessarily correlated with the stock market, so not sure why Dan is all Debbie-the-downer on it.

And @Ken and , thank you, I put a good amount of work and tracking and all to get those numbers and believe they’ll continue to get better for at least awhile, as my delinquencies have actually been dropping.

@Dan, I knew it was only a matter of time until you mentioned the stats regarding Prosper 1.0 and Prosper 2.0. I agree that data is less useful when you nit-pick and try to make it fit assumptions. But that’s hardly what’s being done here. Ignoring the fact that ~15% over 5 years is still pretty good, you have to take into account what is being parsed. If we choose random variables to adjust to get certain ROIs, I’d be with you. But the reincarnation is as clear a line of distinction you can get and a very logical point to refine data. With all the changes from 1.0 to 2.0, it’s hard to compare them at all. And so while it’s useful for my finances to look all the way back, it’s not useful at all to judge my current performance (or anyone’s) or as a predictor of future returns. You can mention the prior returns, but this is a case where it’s useful to eliminate data from the model in order to make it more useful.

And generally I think the negativity towards Prosper is unjustified, and I agree with Peter in that, though they aren’t as sound currently as LC, their future is just as bright and I expect them to turn profitable.

~Shawn
Prosper lender “shawnw2”

Dan B
Dan B
Aug. 19, 2011 11:30 pm

Peter………..That’s completely logical. But now what if I were to flip the results around & tell you that I did better during DanB 1.0? That is why I like to look at all the results & not get that excited.

I don’t have to tell you that numbers can be really tricky. Look at Lendstats Prosper numbers for 2010 & so far in 2011. Should investors be alarmed that the ROI for 2011 issued loans are substantially lower than the ones from 2010? I mean it should in fact be the other way round, should it not? I don’t think it’s that alarming mostly because I think there’s a helluva lot of other things to be alarmed at over there, but that’s just me.

Dan B
Dan B
Aug. 19, 2011 11:42 pm

Shawn…………Not that you owe anyone any explanations, but I’d be more inclined to believe that your Prosper 2.0 performance so far is sustainable &/or isn’t just an anomaly if you could explain how you have been able to do so much better than average during Prosper 2.0………………….& then explain how you were able to do so much poorer than average during Prosper 1.0.

Dan B
Dan B
Aug. 19, 2011 11:49 pm

Correction………..I meant to say,, I don’t think it’s that alarming mostly because I think there’s a helluva lot of other things to be alarmed at over at Prosper, but that’s just me.

Dan B
Dan B
Aug. 20, 2011 12:03 pm

Sure 15% long term is certainly possible, but not probable imo.

As for my Prosper account, I am pleased to say that I’ve sold over 50 notes at an average 1.7% premium in the last 2 months & am down to my last 6. I was pleasantly surprised that I had an easier time than anticipated in unloading them……………..though I have no idea why it takes 5-7 days for notes to “settle” after they are sold at Prosper. Considering that it takes 1-3 days at Lending Club & both platforms are run by Folio, this extra time makes no sense to me.

Dan B
Dan B
Aug. 21, 2011 10:20 am

After paying the 1% fee there wasn’t much left over, but yes I was real surprised that I was able to sell them at any premium. I was also surprised at how quickly they sold. So at least liquidity doesn’t appear to be a problem currently.

Charlie H
Charlie H
Aug. 23, 2011 8:03 am

Question: Prosper seems to give borrowers of the same average credit quality almost 50% higher interest rate in some cases.
Give that, the returns on Prosper should be higher.

The problem with this is that if you are a borrower, you will look for the option with the lowest interest rate.
So while this higher interest rate is good for the lenders, it hurts loan growth.
If Prosper is going to be profitable it needs to start growing and growing fast.

Charlie H
Charlie H
Aug. 24, 2011 2:14 pm

Thanks for the clarification PeterR. I just can’t make heads or tails of how they are pricing there loans.

1: Are some loans not funding because of lack of investors ?
or
2: Are some loans not funding because of the odd pricing causing market distortions.

Some prosper loans fund with in hours, while a fair number never fund.
This tells me that the loans may not be accurately priced from a risk/reward stand point.