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.

Related posts:

• New Standing Order Prosper Lending Strategy After some initial flirting with manual bidding I have moved exclusively to standing orders for all my prosper loans.  As I am now in a...
• My Standing Order Basics I have 10 standing orders in 2 groups. Group 1: Auto Funding (AF) Group 2: Non Auto Funding (NAF) I needed to split into 2...
• 3 Standing Order Features Prosper Needs — Time Remaining Criteria and more I fund loans exclusively through standing orders. (At the moment very tight standing orders.) I like the options and flow of the current standing orders...
• Prosper Standing Order Feature Request Previously I wrote about 3 features I wish prosper standing orders implemented and my new prosper standing order  lending strategy.  Having watched closely for a week...
• Reduced Required Rates by 0.5% for All Standing Orders with Rates Greater Than 15% After watching for several days with no activity I was getting anise.  So I decided to reduced required rates by 0.5% for all standing orders...

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Prosper Days 2007, Prosper.com, Strategy

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