It’s been a long time since I’ve made a mention of Prosper.com. The reason is that it hasn’t been performing as I had hoped. I’m putting money into Prosper though one could conclude that I should stop.
What’s the cause for the change in my philosophy? Well, I found LendingStats.com which helps you track your portfolio. I was looking at my overall portfolio and I found some interesting things. You can see that my current performance is around 5%, not exactly something to write home about. If you look at the customize block, you can various attributes to find out how parts of your portfolio are performing. I like to view it by loan grades. If you look at my loans from AA-B, I’m making around 18-19% on 28 loans, a nice investment. If you at my grade though, it’s only performing at 6%. My D’s are worse at a portfolio busting -2%. My E’s rebound a little bit to return 3%. My portfolio is biased towards D and E grades from the two months where I figured I could do well with anything making 25% interest. That was a terrible plan and since I’ve abandoned it, I’ve done better. As I continue to focus to AA, A, and B, loans I could see my portfolio performing as good or better than the 12% that I expected from the outset.
A couple of months ago, I revealed the keys to my Prosper success. Give the data above I was probably a little pre-mature about that “success.” One of the biggest keys was to use a couple of queries from ProProsper.com. ProProsper has taken note and created a pair of RSS feeds for the Lazy Man auto-funding loans and the Lazy Man 24 hour fund. I’ve been looking the RSS feeds for a few days now, and if you lend money on Prosper, I urge you to check them out. I still prefer to cut and paste the queries into the query analyzer.