Deprecated: Assigning the return value of new by reference is deprecated in /home/danneau/regruntled.com/wp-settings.php on line 520

Deprecated: Assigning the return value of new by reference is deprecated in /home/danneau/regruntled.com/wp-settings.php on line 535

Deprecated: Assigning the return value of new by reference is deprecated in /home/danneau/regruntled.com/wp-settings.php on line 542

Deprecated: Assigning the return value of new by reference is deprecated in /home/danneau/regruntled.com/wp-settings.php on line 578

Deprecated: Function set_magic_quotes_runtime() is deprecated in /home/danneau/regruntled.com/wp-settings.php on line 18

Strict Standards: Declaration of Walker_Page::start_lvl() should be compatible with Walker::start_lvl(&$output) in /home/danneau/regruntled.com/wp-includes/classes.php on line 1199

Strict Standards: Declaration of Walker_Page::end_lvl() should be compatible with Walker::end_lvl(&$output) in /home/danneau/regruntled.com/wp-includes/classes.php on line 1199

Strict Standards: Declaration of Walker_Page::start_el() should be compatible with Walker::start_el(&$output) in /home/danneau/regruntled.com/wp-includes/classes.php on line 1199

Strict Standards: Declaration of Walker_Page::end_el() should be compatible with Walker::end_el(&$output) in /home/danneau/regruntled.com/wp-includes/classes.php on line 1199

Strict Standards: Declaration of Walker_PageDropdown::start_el() should be compatible with Walker::start_el(&$output) in /home/danneau/regruntled.com/wp-includes/classes.php on line 1244

Strict Standards: Declaration of Walker_Category::start_lvl() should be compatible with Walker::start_lvl(&$output) in /home/danneau/regruntled.com/wp-includes/classes.php on line 1391

Strict Standards: Declaration of Walker_Category::end_lvl() should be compatible with Walker::end_lvl(&$output) in /home/danneau/regruntled.com/wp-includes/classes.php on line 1391

Strict Standards: Declaration of Walker_Category::start_el() should be compatible with Walker::start_el(&$output) in /home/danneau/regruntled.com/wp-includes/classes.php on line 1391

Strict Standards: Declaration of Walker_Category::end_el() should be compatible with Walker::end_el(&$output) in /home/danneau/regruntled.com/wp-includes/classes.php on line 1391

Strict Standards: Declaration of Walker_CategoryDropdown::start_el() should be compatible with Walker::start_el(&$output) in /home/danneau/regruntled.com/wp-includes/classes.php on line 1442

Strict Standards: Redefining already defined constructor for class wpdb in /home/danneau/regruntled.com/wp-includes/wp-db.php on line 306

Strict Standards: Redefining already defined constructor for class WP_Object_Cache in /home/danneau/regruntled.com/wp-includes/cache.php on line 431

Strict Standards: Declaration of Walker_Comment::start_lvl() should be compatible with Walker::start_lvl(&$output) in /home/danneau/regruntled.com/wp-includes/comment-template.php on line 1266

Strict Standards: Declaration of Walker_Comment::end_lvl() should be compatible with Walker::end_lvl(&$output) in /home/danneau/regruntled.com/wp-includes/comment-template.php on line 1266

Strict Standards: Declaration of Walker_Comment::start_el() should be compatible with Walker::start_el(&$output) in /home/danneau/regruntled.com/wp-includes/comment-template.php on line 1266

Strict Standards: Declaration of Walker_Comment::end_el() should be compatible with Walker::end_el(&$output) in /home/danneau/regruntled.com/wp-includes/comment-template.php on line 1266

Strict Standards: Redefining already defined constructor for class WP_Dependencies in /home/danneau/regruntled.com/wp-includes/class.wp-dependencies.php on line 31

Strict Standards: Redefining already defined constructor for class WP_Http in /home/danneau/regruntled.com/wp-includes/http.php on line 61

Strict Standards: Redefining already defined constructor for class ngg_Tags in /home/danneau/regruntled.com/wp-content/plugins/nextgen-gallery/lib/nggallery.lib.php on line 485

Warning: session_start(): Cannot send session cookie - headers already sent by (output started at /home/danneau/regruntled.com/wp-settings.php:520) in /home/danneau/regruntled.com/wp-content/plugins/wordpress-automatic-upgrade/wordpress-automatic-upgrade.php on line 119

Warning: session_start(): Cannot send session cache limiter - headers already sent (output started at /home/danneau/regruntled.com/wp-settings.php:520) in /home/danneau/regruntled.com/wp-content/plugins/wordpress-automatic-upgrade/wordpress-automatic-upgrade.php on line 119

Strict Standards: Redefining already defined constructor for class ftp_base in /home/danneau/regruntled.com/wp-content/plugins/wordpress-automatic-upgrade/lib/ftp_class.php on line 56

Strict Standards: Redefining already defined constructor for class ftp in /home/danneau/regruntled.com/wp-content/plugins/wordpress-automatic-upgrade/lib/ftp_class_sockets.php on line 8
Regruntled.com » 2008 » June » 15

Prosper recap

Posted by Dan on Jun 15th, 2008
2008
Jun 15

Strict Standards: Non-static method nggallery::get_option() should not be called statically in /home/danneau/regruntled.com/wp-content/plugins/nextgen-gallery/nggfunctions.php on line 10

Prospero_and_miranda There is a new academic study of Prosper, the peer-to-peer loan platform, by economists Seth Freedman and Ginger Zhe Lin of the University of Maryland. Among the findings:

  1. The average Prosper returns since inception were estimated at 6.05% with a 5.72% standard deviation and were trending up as credit quality continues to improve (see table 9 and figure 8.3).
  2. The highest returns were in Near Prime loans (grades B-D) at an average of 8.27%, followed by Prime loans (grades AA & A) at 6.78% and sub-prime loans at 1.73%.

My own experience is that I am getting about 12.5% on AA and A loans. Mentally I discount my return to 10% to allow room for defaults, and attribute the extra 2.5% to luck. I suspect that it is not so difficult to beat the averages because the averages are lowered by clueless newbies bidding on loans that they will see as hopeless mistakes after they get a bit of experience.

Even though I think I could earn 9 or 10% on Prosper, I have not put in additional funds, mainly due to a lack of confidence that Prosper is growing fast enough to be viable.

See also: