Saturday, November 3, 2007

Revenge Of Linkfest

RateLadder looks at thin slices of loans:

However, I would caution lender to think for themselves a little bit. Speaking as one who has analyzed a bunch of Prosper data if you sliced the current loan data into 54 equal segments (see graph at the bottom of the page) you start to get some mighty fine segments. There are currently 15,832 loans on Prosper. 15,832 / 54 = 293 per segment assuming equal size buckets. I haven’t looked but I am sure that not all buckets are of equal size. Even with even distribution this is cutting it close.

WiseClerk ponders on the effects of identity theft:

P2p lending services can tolerate only a low level of identity theft cases. The innovative approach of p2p lending requires that lenders trust the concept and the service. Fraud cases endanger that trust.

RateLadder had Prosper repurchase a loan:

Yesterday, I had one of those bitter sweet moments. Sweet in that a loan I had been writing off in my mind as bad was repurchased by Prosper for the full principal balance. Bitter, because I really believe I am helping people with these loans and yet someone would take advantage and try to steal my hard earned money.

One person's experience with

If someone with a lot of cash wanted to invest on Prosper there are ways to automate it and reduce the workload relative to what I was doing. For instance, you can set up bidding agents that will bid on any loans with certain characteristics. My hunch is that lenders who are continually refining their agents and doing rigorous analysis of the data on the site probably can make money without plodding through thousands of listings. If you can't be that sophisticated about it, I wouldn't recommend lending on Prosper unless you think it's fun.

Secondary Market & SEC Filing Roundup:
The Economist - Peer-to-peer lending: Crunchless credit

IF THE banks won’t lend you money, might a stranger? Probably not, to judge by recent data from Prosper, an American peer-to-peer lending marketplace (a place where people can lend their own money to other people).The website, which lets lenders bid against each other on the interest rates they are prepared to offer to specific borrowers, has seen an increase in demand from subprime borrowers as access to credit has tightened. But lenders have responded in turn.

Business Week - Looking Elsewhere

With tried-and-true sources of capital drying up, entrepreneurs need to get creative about finding financing. If lenders turn you down, consider one of the new Web sites that link entrepreneurs and individuals with cash, such as or

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