In the large lender panel pensioner state that he focuses exclusively on 20%+ loans and C, D, and E credit grades. While I don’t have the risk tolerance for those default rates I thought I should impose a rate floor. I have chosen 15%. I have adjusted all my standing orders to no longer bid on any loan less than 15%. If a standing order had a lower rate for a particular grade I raised the rate to 15%. All other rates remain the weighted average over the last 100 days plus 1.5%.
In addition, I have chosen to add an additional extended credit requirement. I will now only bid on listings that have a debt utilization of 5%-70%. I am not able to test this new assumption using the Prosper ROI performance tool as that information does not exist in old data.
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