August 9, 2016

Prosper Performance Update: July 2016

By Brad Pennington

Today, I am proud to share the Prosper Performance Update for July 2016. As you will see in the Update, expected returns in the first and second quarter of 2016 production are just above 7.4% on average.* The Update also shows that early delinquency for 2016Q2 vintages is below 2015Q4 and 2016Q1 levels.

Prosper believes that policy changes that were first implemented in the third quarter of 2015 are responsible for the lower delinquency for 2016Q2 vintages. As a result of this change, we have shown a higher FICO on the portfolio, indicating a higher average quality of borrower (by traditional credit metrics). Additionally, in early 2016, we increased pricing and loss estimates, which we believe should contribute to increasingly attractive returns for investors.

Other portfolio highlights for the month ending July 31, 2016 include:

  • The origination data continues the trend towards a more conservative portfolio with a greater coupon.
  • Cumulative gross charge-offs remain above 2013 trend as a result of environmental changes in the consumer credit market at the end of 2015.
  • Pre-payment patterns remain relatively stable with vintages from 2015 and 2016 tracking the early pre-payment patterns of the 2013 vintage more closely than that of the 2014 vintage.

More portfolio insights and key charts can be found in the full report.     

The Prosper Performance Updates are designed to help our investor community better understand performance trends and to provide them with the information and tools needed to invest through the Prosper platform.

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* Estimated return is calculated by taking the WA Eff. Yield and subtracting the WA Loss. Individual results may vary and estimates can change. Actual performance may differ from estimated performance, and the information presented is not intended to be investment advice or a guarantee of the performance of any Note or loan.

The data, statements and figures in this post are based on Prosper’s analysis and calculations which, in turn, are based on various data sources compiled and analyzed by Prosper with all reasonable care to ensure they contain no omission likely to affect their import. Neither the analysis nor the underlying data sources have been verified by an independent third party.

This post includes forward-looking statements. Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of our management and is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. All forward-looking statements speak only as of the date of this post and are expressly qualified in their entirety by the cautionary statements above. We undertake no obligation to update or revise forward-looking statements that may be made in this post to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

All personal loans are made by WebBank, a Utah-chartered Industrial Bank, Member FDIC. All personal loans through Prosper are unsecured, fully amortized personal loans. Neither Prosper Funding LLC nor Prosper Marketplace, Inc. are registered as an investment adviser with any federal or state regulatory agency. The information contained in this presentation is for informational purposes, and should not be construed as individually tailored investment advice or as a recommendation with respect to any security or investment approach. This presentation has been prepared without regard to the circumstances and objectives of its participants and should not be relied upon as authoritative or taken in substitution for the exercise of judgment by any individual.  Each individual should consider the appropriateness of any investment decision having regard to his or her own circumstances, the full range of information available and appropriate professional advice. Prosper Funding LLC and Prosper Marketplace, Inc. recommend that each individual seek independent investment and financial advice concerning any services or investments discussed in this presentation.