Prosper will be changing the way we present the return information on our website and will begin providing historical return data for each Prosper rating. This move from expected returns to historical data is intended to give our investors even greater insight into the Prosper platform’s performance as they make their investment decisions.
Today, in addition to sharing performance data from the Prosper portfolio for June 2018, we are excited to introduce our new Chief Credit Officer, Ashish Gupta. Ashish joined Prosper in 2017 and was appointed Chief Credit Officer in the beginning of July 2018. In his current role, Ashish oversees all elements of Prosper’s credit strategy, including pricing, underwriting strategy, verification strategy, loss-forecasting, model development, model governance and credit risk aspects of new product development.
In March, we discussed Prosper’s approach to portfolio pricing in a rising interest rate environment. Prosper is committed to delivering value for both sides of the platform by providing a fair price for borrowers and a reasonable return for investors. With this objective in mind, we have been increasing the borrower rates on our platform since March to stay in-line with changes in the interest rate environment (Exhibit A).
Today we are sharing performance data from the Prosper portfolio for March 2018. While the credit tightening theme we highlighted in February continues in the riskier grades, a slight downward shift in the AA portion of the book resulted in 53.5% of assets being rated AA-B in March vs. 56.1% in February 2018. In 2017 Q4 AA-B comprised 49.5% of originations.
Today we are sharing performance data from the Prosper portfolio for February 2018. In addition to the update, we recently made pricing changes on our platform in light of the 25bps Fed rate increase. This update is part of our ongoing efforts maintain a balanced marketplace that builds value for both borrowers and their investors.
Earlier this week in anticipation of the Fed Rate hike, we discussed Prosper’s approach to portfolio pricing in a rising rate environment. Our goal with rate-setting is to deliver value for both sides of the Prosper platform by providing a fair price for borrowers and a reasonable return for investors.
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