Most of this is in line with how I figured the scene would change after lender guidance were issued. What puzzles me is the increase in the rate cap to 35%. That is not in line with the other actions.
How is this puzzling?
when prosper first made the bidding guidance, there were 54 segments (there are more now). Out of those 54, only 15 had net default rates <10%.
I don't have the exact number, but just about as many segments had between 10-20% net default rates (even 1 "A" segment). Rates north of 29% would be needed to get many of these funded. (I haven't had the chance to look at the new segments much, but it should be similar.)
My feeling is that prosper needed to get the max rate up just enough so that (hopefully) many of the 10-20% net default rate segments would have a chance to fund. I haven't looked into it enough to see if it worked well or not...