Comments on: Old(ish) Large Prosper Portfolio In Great Shape http://www.rateladder.com/2007/10/01/oldish-large-prosper-portfolio-in-great-shape/ P2P Lending News, Information, Borrowing and Lending Strategy Fri, 16 Oct 2009 04:59:46 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Lend2 http://www.rateladder.com/2007/10/01/oldish-large-prosper-portfolio-in-great-shape/comment-page-1/#comment-20386 Lend2 Tue, 02 Oct 2007 17:28:07 +0000 http://www.rateladder.com/2007/10/01/oldish-large-prosper-portfolio-in-great-shape/#comment-20386 Fair enough. I did oversimplify the circumstances substantially. Of course, you also have to consider that his portfolio is only 140 days old. Since loans rarely recover from the >1 Month bucket, and he is likely to have more go late, it is likely that his annualized percentage of defaulting loans will run higher than that 2.5%. Again, it is impressive that he's doing better than most of us. I'm just saying that his returns are pretty consistent with what I would expect based on the Experian default rates--he just happens to be invested in higher-rated loans than many of us. Fair enough. I did oversimplify the circumstances substantially. Of course, you also have to consider that his portfolio is only 140 days old. Since loans rarely recover from the >1 Month bucket, and he is likely to have more go late, it is likely that his annualized percentage of defaulting loans will run higher than that 2.5%. Again, it is impressive that he’s doing better than most of us. I’m just saying that his returns are pretty consistent with what I would expect based on the Experian default rates–he just happens to be invested in higher-rated loans than many of us.

]]> By: Kevin http://www.rateladder.com/2007/10/01/oldish-large-prosper-portfolio-in-great-shape/comment-page-1/#comment-20385 Kevin Tue, 02 Oct 2007 04:05:47 +0000 http://www.rateladder.com/2007/10/01/oldish-large-prosper-portfolio-in-great-shape/#comment-20385 I am not saying that you are wrong, but the answer is more complicated than that... for a 3 year amortized loan the default/late rates are lower near the end of the loan than in the beginning. I am not saying he is past the point of highest defaults. Just that so far he has held up fairly well. I fully expect to make better than CD rate returns 8+%, just don't ask me to prove it until 1/1/2010. Until that point I will take it on faith and continue to track the late curves: http://www.rateladder.com/2007/09/08/1-month-late-or-worse-curves-by-credit-grade-september-1-07-update/ I am not saying that you are wrong, but the answer is more complicated than that…

for a 3 year amortized loan the default/late rates are lower near the end of the loan than in the beginning. I am not saying he is past the point of highest defaults. Just that so far he has held up fairly well.

I fully expect to make better than CD rate returns 8+%, just don’t ask me to prove it until 1/1/2010. Until that point I will take it on faith and continue to track the late curves: http://www.rateladder.com/2007/09/08/1-month-late-or-worse-curves-by-credit-grade-september-1-07-update/

]]> By: Lend2 http://www.rateladder.com/2007/10/01/oldish-large-prosper-portfolio-in-great-shape/comment-page-1/#comment-20384 Lend2 Mon, 01 Oct 2007 20:02:44 +0000 http://www.rateladder.com/2007/10/01/oldish-large-prosper-portfolio-in-great-shape/#comment-20384 It is refreshing to see a lender achieving some success and feeling satisfied with his portfolio. However, in all fairness, those 7 late/defaulted loans equate to 2.5% of his portfolio. LendingStats averages out his weighted portfolio at B-, so that 2.5% is merely in-line with the Experian averages. That's better than most of us are doing, but I'm not sure matching the expected failure rate is cause for true celebration! It is refreshing to see a lender achieving some success and feeling satisfied with his portfolio. However, in all fairness, those 7 late/defaulted loans equate to 2.5% of his portfolio. LendingStats averages out his weighted portfolio at B-, so that 2.5% is merely in-line with the Experian averages. That’s better than most of us are doing, but I’m not sure matching the expected failure rate is cause for true celebration!

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