Welcome!

Microservices Expo Authors: Stackify Blog, Pat Romanski, Liz McMillan, Elizabeth White, Derek Weeks

News Feed Item

Prosper Releases Market Survey Results for March 2008

Prosper Releases Market Survey Results for March 2008

Prosper(www.prosper.com), America’s largest people-to-people lending marketplace, today reported market survey results for March 2008. In this month’s survey Prosper CEO and Co-Founder, Chris Larsen, discusses positive portfolio plan performance and adoption trends.

March 2008 Prosper People-to-People Lending Market Survey

Prosper’s People-to-People Lending Market Survey results are released the second Tuesday of every month. To register to automatically receive the survey, send an email with “SUBSCRIBE” in the subject line to: p2plendingmarketsurvey@prosper.com.

Market Commentary By Prosper Co-founder and Chief Executive Officer, Chris Larsen

As we have previously reported, Prosper’s mix of “well priced” loans – loans with an attractive risk-return tradeoff – has dramatically changed from the same period last year with approximately a 200% increase in the percentage of “well priced” loans and a six-fold decrease in “low priced” loans – loans with an unattractive risk-return tradeoff. Part of this positive trend is attributable to the introduction of portfolio plans and performance guidance from the Prosper Marketplace – changes introduced last October. These changes continue to drive better overall performance of the market.

In March we saw further evidence of this with portfolio plan performance improving. For example, the Conservative portfolio plan – one of four model portfolio plans Prosper has provided as templates that can be used by lenders – consists of five credit slices. Looking at all the credit slices across all four plans, 18 of 21 slices improved or remained constant. This is quite positive considering the continuing credit crunch occurring in so many traditional financial markets and should lead to both better rates for borrowers and better performance for lenders.

We are also seeing a healthy start of custom portfolio plans, which lenders can create from scratch or modify from an existing Prosper model plan. These plans can be easily shared with friends or family. In March, approximately 1,800 custom plans were created that spawned over 18,000 bids.

Percentage of Attractive Risk-Return Tradeoff Loans as a Percentage of All Loans

     
March 2008   March 2007
72%   21%
 

Mix of Funded Borrowers

                   
    March

2008

  March

2007

  Year-to-Date

2008

  Year-to-Date

2007

  Since

Inception

Prime   39%   29%   41%   27%   32%
Near Prime   56%   57%   54%   55%   55%
Sub Prime   5%   14%   5%   18%   14%
       

Membership and Loan Volume Statistics

                   
    March

2008

  March

2007

 

Year-to-Date

2008

 

Year-to-Date

2007

  Since

Inception

New Members   40,779   38,938   108,273   103,705   646,401
Funded Loans  

$7.3 million

  $8.0 million   $20.5 million   $19.6 million   $128.8 million
Average Loan Size   $6,536   $6,935   $6,659   $6,419   $6,316
Daily Average Number of Borrower Listings   2,287   1,848   2,197   1,821   1,628
       

Estimated Annual Return on Prosper Select Index

   
    March 2008
Prosper Select Index   8.57%
Prime Select Index   9.19%
Near Prime Select Index   8.02%
Sub Prime Select Index   7.62%
 

Average Borrower Rates on Prosper Select Loans

                       
    March

2008

  February

2008

  March

2007

 

Year-to-Date

2008

 

Year-to-Date

2007

 

Since

Inception

Prime Select Loans   9.86%   10.32%   10.38%   10.02%   9.64%   10.06%
Near Prime Select Loans   15.52%   17.10%   15.08%   16.31%   14.76%   16.16%
Sub Prime Select Loans   35.00%   N/A   21.85%   29.69%   21.5%   24.16%
         

Definitions

Portfolio Plans: A portfolio plan is an automatic bidding tool that enables lenders to create their own bidding strategies and have bids placed automatically on listings that match the lender’s desired lending criteria. Prosper lenders can create portfolio plans consisting of multiple slices of credit attributes.

Since Inception: November 1, 2005 through March 31, 2008. Prosper’s by invitation only “friends and family” launch began on November 1, 2005 and Prosper launched to the general public on February 13, 2006.

2008 Year-to-Date: January 1, 2008 through March 31, 2008.

2007 Year-to-Date: January 1, 2007 through March 31, 2007.

Prosper Select Index: The Prosper Select Index return is the estimated average annual return on principal, based on actual delinquency performance to date. The Prosper Select Index includes AA - E credit grade loans for borrowers whose credit reports at the time of application indicated zero current delinquencies, three or fewer credit inquiries, and a debt-to-income ratio of 40 percent or less. The annual return period reflects loans originated in the twelve month period ending one month prior to the observation date of March 31, 2008. Prime Select includes AA and A credit grade loans (credit scores of 720+). Near Prime Select includes B, C, D credit grade loans (credit scores between 600 and 719). Sub Prime Select includes E credit grade loans (credit scores between 560 and 599).

Average Borrower Rates: Average Borrower Rates are the weighted average borrower rates on Prosper Select Index loans with loan amounts between $5,000 and $10,000. Rates shown are interest rates, not annual percentage rates.

Mix of Funded Borrowers: Prime includes all AA and A credit grade loans (credit scores of 720+). Near Prime includes all B, C, D credit grade loans (credit scores between 600 and 719). Sub Prime includes all E and HR credit grade loans (credit scores below 600).

N/A: = Not available; no loans met these criteria.

About Prosper

Prosper (www.prosper.com), America's largest people-to-people lending marketplace, was created to make consumer lending more financially and socially rewarding for everyone. Prosper’s membership consists of over 650,000 people from across the country. Since launching in February 2006, over $130 million in loans have been funded in the marketplace.

The way Prosper works is intuitive to people who have used eBay. Instead of listing and bidding on items, people list and bid on loans using Prosper's online auction platform. People who want to borrow on Prosper create loan listings for up to $25,000 and set the maximum rate they are willing to pay a lender. People who register as Prosper lenders set the minimum interest rate they are willing to earn and bid in increments of $50 to $25,000 on loan listings they select. In addition to criteria commonly used by institutional lenders, such as credit scores and histories, Prosper lenders can consider borrowers' personal stories, endorsements from friends, and group affiliations. Once the auction ends, Prosper takes the bids with the lowest rates and combines them into one simple loan to the borrower. Prosper handles all on-going loan administration tasks including loan repayment and collections on behalf of the matched borrowers and lenders.

Prosper was co-founded by Chris Larsen, co-founder of E-LOAN, and John Witchel, technology entrepreneur. Backed by Accel Partners, Benchmark Capital, DAG Ventures, Fidelity Ventures, Meritech Capital, and Omidyar Network, Prosper has raised approximately $40 million. Prosper's marketplace platform is patent pending.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@MicroservicesExpo Stories
Web services have taken the development world by storm, especially in recent years as they've become more and more widely adopted. There are naturally many reasons for this, but first, let's understand what exactly a web service is. The World Wide Web Consortium (W3C) defines "web of services" as "message-based design frequently found on the Web and in enterprise software". Basically, a web service is a method of sending a message between two devices through a network. In practical terms, this ...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that’s no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, will explore how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He wi...
We have Continuous Integration and we have Continuous Deployment, but what’s continuous across all of what we do is people. Even when tasks are automated, someone wrote the automation. So, Jayne Groll evangelizes about Continuous Everyone. Jayne is the CEO of the DevOps Institute and the author of Agile Service Management Guide. She talked about Continuous Everyone at the 2016 All Day DevOps conference. She describes it as "about people, culture, and collaboration mapped into your value streams....
These days, change is the only constant. In order to adapt and thrive in an ever-advancing and sometimes chaotic workforce, companies must leverage intelligent tools to streamline operations. While we're only at the dawn of machine intelligence, using a workflow manager will benefit your company in both the short and long term. Think: reduced errors, improved efficiency and more empowered employees-and that's just the start. Here are five other reasons workflow automation is leading a revolution...
Docker is sweeping across startups and enterprises alike, changing the way we build and ship applications. It's the most prominent and widely known software container platform, and it's particularly useful for eliminating common challenges when collaborating on code (like the "it works on my machine" phenomenon that most devs know all too well). With Docker, you can run and manage apps side-by-side - in isolated containers - resulting in better compute density. It's something that many developer...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single-threaded, you can effectively identify hot spots in your serverless code. In his session at @DevOpsSummit at 21st Cloud Expo, Dave Martin, Product owner at CA Technologies, will give a live demonstration and code walkthrough, showing how ...
Did you know that you can develop for mainframes in Java? Or that the testing and deployment can be automated across mobile to mainframe? In his session and demo at @DevOpsSummit at 21st Cloud Expo, Dana Boudreau, a Senior Director at CA Technologies, will discuss how increasingly teams are developing with agile methodologies, using modern development environments, and automating testing and deployments, mobile to mainframe.
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
With Cloud Foundry you can easily deploy and use apps utilizing websocket technology, but not everybody realizes that scaling them out is not that trivial. In his session at 21st Cloud Expo, Roman Swoszowski, CTO and VP, Cloud Foundry Services, at Grape Up, will show you an example of how to deal with this issue. He will demonstrate a cloud-native Spring Boot app running in Cloud Foundry and communicating with clients over websocket protocol that can be easily scaled horizontally and coordinate...
There are several reasons why businesses migrate their operations to the cloud. Scalability and price are among the most important factors determining this transition. Unlike legacy systems, cloud based businesses can scale on demand. The database and applications in the cloud are not rendered simply from one server located in your headquarters, but is instead distributed across several servers across the world. Such CDNs also bring about greater control in times of uncertainty. A database hack ...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He also discussed how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
API Security is complex! Vendors like Forum Systems, IBM, CA and Axway have invested almost 2 decades of engineering effort and significant capital in building API Security stacks to lockdown APIs. The API Security stack diagram shown below is a building block for rapidly locking down APIs. The four fundamental pillars of API Security - SSL, Identity, Content Validation and deployment architecture - are discussed in detail below.
IT organizations are moving to the cloud in hopes to approve efficiency, increase agility and save money. Migrating workloads might seem like a simple task, but what many businesses don’t realize is that application migration criteria differs across organizations, making it difficult for architects to arrive at an accurate TCO number. In his session at 21st Cloud Expo, Joe Kinsella, CTO of CloudHealth Technologies, will offer a systematic approach to understanding the TCO of a cloud application...
API Security has finally entered our security zeitgeist. OWASP Top 10 2017 - RC1 recognized API Security as a first class citizen by adding it as number 10, or A-10 on its list of web application vulnerabilities. We believe this is just the start. The attack surface area offered by API is orders or magnitude larger than any other attack surface area. Consider the fact the APIs expose cloud services, internal databases, application and even legacy mainframes over the internet. What could go wrong...