Both L5 and now pensioner have responded. I would like to thank them for their insights and generosity of time. As I said about L5, pensioner is a sharp tack and I knew he was thinking correctly, I just wanted to be sure.
I probably did give the erroneous impression during my Prosper Days presentation that I thought that rate minus defaults is equal to ROI. I am well aware that that is not true. On the other hand, when I am scanning listings I do use that as a quick and simple approximation. This was particularly true when I was trying to get my first $750K loaned out. I was making large bids on AF listings so I did not spend much time with precise calculations. At times I bid several thousand dollars after reviewing a listing for a little as 10 seconds, if I thought that the listing was going to be snapped up.
I am planning on studying the ROI white paper, but have not yet found time to do that. You also mentioned IRR calculations, which is another thing I plan to explore, but have not yet found the time for.
I enjoyed your presentation. My favorite part was the contrasting opinions from your friend and your wife on the same listing.
If this or any other of my communications to you have value, you are welcome to share them.