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Be a buyer

11 (15.3%)

Be a seller

10 (13.9%)

Be an active trader (seller and buyer)

10 (13.9%)

Be undecided

26 (36.1%)

Not take part (WGAF)

15 (20.8%)

Total Members Voted: 69

[j9359]

With an auction style format, I wonder if we're going to see tons of loans for sale at "just above minimum."  Now lenders can join the ranks of those certain special borrowers with multiple listings for the same darn loan...

But it looks like it will cost something to list on the secondary market so this should cut down on folks just listing to see what they can get.

[112233]

I wonder if banned members will be able to take part in the secondary market.

I doubt it -- there are very few things I can still do, other than review my portfolio and transfer money out.  I suppose Prosper could choose to allow banned members to sell on the secondary market on the theory of "good riddance," but I still doubt it. 

That's why I've been keeping a low profile on the .com website.  I don't want to do anything that would impede my bailing out of Prosper once the secondary market is available.

I'll have to give some thought about what I might want to do with my member description between the time that all of my loans are sold/paid/defaulted and all cash transferred out, and the time that I request Prosper to terminate my account (which probably won't be until a year after I file my last taxes with Prosper activity).   
 

I haven't had any trouble.  I registered them with godaddy and used private registration.   I sold a couple and the transfer was easy.

will you be buying more drugs with your prosper loan?

[onthefence]

I'm planning to sell my one remaining loan at a premium. It's an AA at 12.94% that's made 11 payments with no problems.

Which could be paid off tomorrow...

Hey, if loans were going for a premium & you got a message from your borrower that he/she was going to pay off early.

On the flip side, what if a lender hears bad news about a borrower & that the loan is probably going to go south, it would be a good time to unload on some unsuspecting lender.

(Please note I am not trying to question your personal ethics, but highlight what could occur for any given loan).

Give the above stated scenarios, I don't see any reason why resold loans should go for a premium.  If they ever did start going for a premium, we would have to be able to factor in at what rate loans are getting dumped in the 2ndary market and factor that into the purchase rate.

[Rich_Lather]

I see two potential problems with the secondary market. First, Prosper has recently decided to censor loan applications after funding, so secondary purchasers would not have the ability to review the borrower's info. Second, if I read the filing correctly, the loans for sale would be $200 or over. This would exclude many $50 "diversifiers" in the lending community.

I don't quite understand where the $500,000,000 underwriting fee comes into play here in their SEC filing. I imaging the big boys coming in with their tried and true actuary tables to snap up all the undervalued - "pennies on the dollar", "get me out of prosper" secondary sellers.

I also image "big credit" will have access to loan apps, whereas lender joe will not.

[Risk_Reward]

Prosper's secondary market will only allow sales at principal value.  So, I don't think there will be much buying or selling happening.

[Mtnchick]

Prosper's secondary market will only allow sales at principal value.  So, I don't think there will be much buying or selling happening.

And therein lies the rub. "Hey, we're offering that Secondary market you all wanted! Aren't we great? Now, here are the rules that no one's going to want to use........". Kinda like the portfolio thing that seems to be more trouble than it's worth.

[Fred93]

Prosper's secondary market will only allow sales at principal value.  So, ...

Where did you get that info?

[Fred93]

I see two potential problems with the secondary market. First, Prosper has recently decided to censor loan applications after funding, so secondary purchasers would not have the ability to review the borrower's info.

Huh?  I can see old listings just fine. 

I imaging the big boys coming in with their tried and true actuary tables to snap up all the undervalued - "pennies on the dollar", "get me out of prosper" secondary sellers.

I also image "big credit" will have access to loan apps, whereas lender joe will not.

You have quite an imagination.

[ira01]

Prosper's secondary market will only allow sales at principal value.  So, ...

Where did you get that info?

I think he made it up.  I seem to remember from the discussion of the prospectus when it was first filed that the secondary market will be an auction -- sellers will choose a minimum price, and buyers will bid what they want to above that, with the high bidder winning.  That is completely inconsistent with RL's statement.

[Fred93]

I think he made it up.  I seem to remember from the discussion of the prospectus when it was first filed that the secondary market will be an auction ...

Indeed.  I just looked it up on the SEC web site.  Here's the sentence of interest...

Resale Platform for resale in a similar auction format as a Borrower listing.

Its there for anyone to read.  There is the following sentence which might confuse some...

The minimum offered sale price may not exceed the sum of (i) the total of all remaining monthly payments of principal and interest on the Note, plus (ii) accrued but unpaid late charges.

That sentence uses the word "minimum" but in fact it is intended to impose a maximum, so that sellers can't charge more than the cash a person could possibly get when/if the loan pays as it is supposta.