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.

If you liked this article, vote for it on del.icio.us and stumbleupon.


Categories:

Prosper Days 2007, Prosper.com, Strategy

Related Articles

• Prosper Standing Order Feature Request

• Auto-funding vs Non-auto-funding

• Standing Orders vs Manual Bids

• Cutting Out the Banks

• RateLadder.com Launches Standing Order Analyzer

Related Stores

• Standing Liberty 1916-30 Quarters Coins US Coins Paper Money

• Manuals, Strategy Casino Collectibles

• Credit, Charge Cards Trading Cards Collectibles

• Halcyon Days Decorative Collectible Brands Decorative Collectibles Collectibles

• Heart Rate Monitors Monitors Pedometers Gym, Workout Yoga Exercise Fitness