Comments on: Prosper enters a cocoon. What will emerge?

By: Monevator

Monevator — Wed, 03 Dec 2008 22:01:38 +0000

I use Zopa as a peer-to-peer lending here in the UK. I noticed that the US version of Zopa closed down around the same time as this post – surely not a coincidence. But I doubt it’s market pressures… it’s probably some sort of regulatory framework tightening, or a withdrawal of liquidity or similar that’s affected these similar companies?

By: Patrick

Patrick — Mon, 20 Oct 2008 11:11:10 +0000

So far this appears to be the same thing that Lending club did. I only made a few loans via Lending Club and Prosper, and so far they are all current.

The added liquidity of a secondary market is attractive, however, in the case of LC, it only applies to loans made after the secondary market was established – so it could be the same way for Prosper.

I don’t think P2P lending is at the stage where it is a more viable investment than more established investments such as REITs, bonds, or cash, but it does offer variety. I jut wouldn’t put anything other than play money in there at this point.

By: Jared

Jared — Sun, 19 Oct 2008 06:30:21 +0000

The liquidity issue raised in this post is a real concern for lenders. Most people don’t want to be caught up in a loan for 2-3 years. I think that Prosper, Lending Club and others will be successful, but it will take some time. After all they are the first movers in the world of peer-to-peer lending.

By: stocks

stocks — Sun, 19 Oct 2008 03:21:55 +0000

I have heard that as well, especially with the amount of certainty going on, I’d be surprised if the current holders manage to make anything significant. (we went public, and ended up losing a fortune, heeh)

By: jim

jim — Sat, 18 Oct 2008 16:34:52 +0000

Funny that they went into a silent period when LendingClub just came out…

TML: I’ve heard the same thing.

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Sat, 18 Oct 2008 13:39:07 +0000

From what I have been reading about Prosper lately, it appears that the only folks who will “prosper” are those who own equity when it goes public. I haven’t read about any Prosper lender who is making enough money (or any money) to justify the risk.