tag:blogger.com,1999:blog-6178547344217818498.post4679126595610422055..comments2023-11-26T16:59:51.483-08:00Comments on Prosper Lending Review: Prosper: A hands-on education in risk managementUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6178547344217818498.post-81382523782529793812009-09-29T06:32:13.026-07:002009-09-29T06:32:13.026-07:00Good article about education in risk managementGood article about education in risk managementsuzanhttp://riskmanagementbank.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-6178547344217818498.post-90587274848422953802008-11-08T19:29:00.000-08:002008-11-08T19:29:00.000-08:00It's extremely important to acknowledge the negati...It's extremely important to acknowledge the negative side of diversification on Prosper. A behavior is risky when a person doesn't know what they're doing - to paraphrase Warren Buffett. In this case, the trick with non-diversified Prosper holdings is to pick someone who you know well, who will pay you an outstanding interest rate, and is very likely to repay.<BR/><BR/>I am a full funder on HR loans, and occasionally I meet an HR person in real life, build a relationship, and then get them onto Prosper to create a loan.<BR/><BR/>After that's done, obviously I can't do anything to get them to pay me back - but I've done the leg work up front to pick people I trust and who have prospects for repayment that mismatch their credit score.Alex Kaufmanhttps://www.blogger.com/profile/07405490798188129642noreply@blogger.comtag:blogger.com,1999:blog-6178547344217818498.post-53099959429703278172008-08-17T17:44:00.000-07:002008-08-17T17:44:00.000-07:00The adjusted returns should be very close, since t...The adjusted returns should be very close, since the rate charged should account for the default risk. I think the adjusted rate even makes sense, when you consider that Prosper most likely competes with CDs and market investments. So somewhere between 5 and 11% would seem about right.`Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6178547344217818498.post-43328171610728104712007-06-25T01:37:00.000-07:002007-06-25T01:37:00.000-07:00Great article - thanks! Based on this report it s...Great article - thanks! Based on this report it seems pretty clear to me that it would be wise to avoid ALL E and HR loans. The default rate is just too high to make them worth the risk.<BR/><BR/>I was surprised at how close the adjusted rate of return is for AA-D. Only a 2% difference.tomhttps://www.blogger.com/profile/14523496714557649644noreply@blogger.com