Connect with us

Hi, what are you looking for?

Company News

Prosper Announces Pricing Changes – 03/21/2018

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.

pricing changes - 03/21/2018

Pricing Changes – 03/21/2018 – 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.

In order to deliver on this objective, the borrower rates offered in our marketplace must react to rate changes in the economy at large. Today, the Federal Reserve announced a 25 basis point (bps) increase in the Fed Funds rate.  In light of this development, the rates offered to borrowers through the Prosper platform are being modified.

Pricing Changes 03-21-2018 – Impact Simulation

The table below summarizes the simulated impact of the rate increase on the portfolio originated through the Prosper platform in March month-to-date (MTD) 2018.  Overall borrower rates on the platform are increasing by 26 bps.

Prosper Rating 

Current Borrower Rate   (March 2018 MTD)Proposed Borrower RatesVariance I/(D)
AA6.46%6.46%0.00%
A8.93%9.23%0.30%
B11.43%11.73%0.30%
C16.03%16.33%0.30%
D23.38%23.68%0.30%
E29.14%29.40%0.25%
HR31.82%31.82%0.00%
Total14.27%14.53%0.26%

Federal Reserve policymakers expect to increase rates three times this year; but, compared with December, more officials believe rates need to increase at least four times in 2018 if the economy performs in line with their expectations. We will continue to closely watch interest rate changes and evaluate the need to make further rate increases. We anticipate that this could be as early as the second quarter of 2018. As one of the largest online marketplaces for consumer credit, maintaining a balanced and sustainable marketplace that is equally appealing to both borrowers and investors remains our highest priority.

Read more:

Join our mailing list

Latest

Budgeting

Budgeting can seem like an afterthought in today’s digital world. Thanks to mobile banking and the internet, there’s no need for most people to...

High gas prices prompting discussion on budgeting High gas prices prompting discussion on budgeting

Best Practices

The new year is a perfect time to get your finances in order. Check out our top tips on how to manage your money...

Consumer Financial Protection Bureau staff look at new consumer protections Consumer Financial Protection Bureau staff look at new consumer protections

Financial Wellness

What comes to mind when you hear the words “Consumer Financial Protection Bureau”? It’s pretty straightforward that it’s an official government agency, but beyond...

Quarterly Investor Update Quarterly Investor Update

Investor Center

Strong credit performance driven by emphasis on disciplined risk management and long-term sustainability

Investor Center

Today we are sharing performance data from the Prosper Portfolio for May 2022. Highlights from the Prosper Performance Update – May 2022: Performance Update...

Investor Center

Today we are sharing performance data from the Prosper Portfolio for April 2022. Highlights from the Prosper Performance Update – April 2022: Performance Update...

You May Also Like