Prosper completed another debt sale… The details are not yet on the Default Sale History page; however, Prosper Shira did make an announcement on the forums…
We completed a debt sale this week which will be evident in participating lender accounts over the next few business days.
When a loan is sold, it is considered to be a default on the Prosper site and in the performance metrics. If one of your loans was sold, you will receive an email notifying you of the default and indicating the sale amount. Sale proceeds will be transferred directly into your Prosper account a few days after you receive your email notification.
Here are the details of the sale:
• Eligible loans were 122 days past due as of July 26, 2007, provided the loan was not part of any bankruptcy filing
• 309 loans were sold
• Price range: 1.8% – 26% as a percent of principal balance
Pricing is determined solely by the debt buyer and can vary from sale to sale. Several factors were used to determine pricing in this sale, with credit grade being a primary reason. Homeownership, which was a major factor in prior debt sales, was not used by the debt buyer as a pricing factor in this sale.
• Weighted average prices by credit grade:
–AA-A = 23%
–B-D = 13.3%
–E, HR, NC = 8.1%
We anticipate the next debt sale will occur in December.
Very interesting that homeownership does not matter this time.
At this time I believe that I had 1 loan (a in this sale. I am waiting to make sure that I don’t have any others before relaying my results. Also, this will force me to deal with my IRR calculation and my Quicken tracking. Stay tuned.