Monday, March 24, 2008

Prosper Pitching To Hedge Funds

I almost overlooked this little nugget. Prosper has taken to pitching it's lending platform as the perfect solution for hedge funds to get into the consumer credit market.

“Prosper is America’s largest peer-to-peer marketplace with over 600,000 members,” stated Kirk Inglis, CFO of Prosper. “As credit markets experience unprecedented changes, institutional lenders, including hedge funds, are using Prosper to diversify portfolio returns without the lack of transparency and fees associated with structured consumer debt products.”

Bear Sterns has shown how well hedge funds handle risky marketplaces. I'm not sure I like the idea of these guys throwing weight around in the Prosper bidding process.

Update: If you're coming over from P2P-Banking.com (Wiseclerk's site) and can't figure out the thing about Texas, try this link. Now if I could find Wiseclerk's e-mail address...

1 comment:

j9359 said...

With the small loan volume and without a secondary market I don't expect that any serious hedge fund is going to be playing around with Prosper loans. There are not enough good listings and the rates are too low already.
"without the lack of transparency" WTF ? Is Kirk implying that with Prosper we have transparency ?