In an email sent out to investors earlier today Prosper announced they will be closing down their secondary market on October 27. They have been running a secondary market via FOLIOfn since 2009 but it has never gained much traction.
I have to admit I have not used the Prosper secondary market for a couple of years but I always liked knowing it was there. I am sure many other investors feel the same way. But going forward all investors will be forced to hold their loans to maturity.
There were a small number of power users but the vast majority of retail investors never used this trading market. One of these power users was Brett Byers, who I interviewed on the Lend Academy Podcast back in 2014. In an email exchange earlier this week he indicated that even he had vastly reduced his use of the Prosper secondary market.
I reached out to Prosper and received the following official comment from Aaron Vermut: [Read more…]