2. “Profit Plan Strained By Cuts”
“Cash Drain Worries Grow as
Company Remains Grounded
By Regulators”
“Problems Blamed on Lack of
Oversight”
3.
4. “Cash Drain Worries Grow as Company
Remains Grounded By Regulators”
“Profit Plan Strained By Cuts…”
“Problems Blamed on Lack of Oversight”
TRANSPORTATION
“Job Cuts and Executive Shuffles…”
“All of These Things Are Definitely Going to
Make Investors Ask for More Scrutiny.”
“Chief Executive Steps Down”
MARKETPLACE LENDING
17. THE NEW NECESSARY NINE
FOR FUND PERFORMANCE
STOP PURCHASING /
CASH DRAG7 CURRENCY HEDGE9LOANS AT A PREMIUM
(PREPAY)8
PLATFORM
PERFORMANCE4 LEVERAGE6FUND FEES5
LOAN VALUATION1 LOAN SELECTION3ACCRUALS FOR
DEFAULTS2
18. YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC PROSPER1,2 INTEREST3
2010 1.05% 0.96% 1.05% 0.90% 0.94% 0.87% 0.95% 0.75% 0.93% 0.83% 0.79% 0.83% 10.84% 19.20%
2011 1.04% 0.86% 0.99% 0.73% 0.80% 0.92% 1.07% 1.07% 1.08% 0.81% 0.71% 0.92% 11.02% 21.16%
2012 0.89% 0.79% 0.93% 0.79% 0.84% 0.87% 0.83% 0.94% 0.57% 0.74% 0.86% 0.58% 9.61% 19.71%
2013 0.80% 0.51% 0.68% 0.61% 0.70% 0.69% 0.79% 0.77% 0.72% 0.78% 0.67% 0.83% 8.56% 16,81%
2014 0.84% 0.75% 0.75% 0.85% 0.74% 0.81% 0.82% 0.79% 0.85% 0.80% 0.75% 0.76% 9.50% 14.19%
2015 0.77% 0.71% 0.60% 0.67% 0.58% 0.70% 0.71% 0.64% 0.64% 0.60% 0,61% 0.58% 7.82% 13.50%
2016 0.47% 0.54% 0.59% 0.58% 0.46% 0.57% 0.41% 0.41% 6.03% 13.82%
1. PROSPER FUNDING LLC OWNS THE MARKETPLACE THROUGH WHICH LOANS ARE ORIGINATED AND SOLD. PROSPER MARKETPLACE, INC. IS THE PARENT COMPANY OF PROSPER FUNDING LLC WHICH OPERATES THE MARKETPLACE ON BEHALF OF PROPSER FUNDING LLC. PROSPER
MARKETPLACE, INC AND PROSPER FUNDING LLLC ARE COOLECCTIVELY REFERRED TO HEREIN AS “PROSPER.” ALL LOANS ORIGINATED THROUGH THE PROSPER MARKETPLACE ARE ORIGINATED BY WEBBANK, A UTAH-CHARTED INDUSTRIAL BANK, MEMBER FDIC.
2. PROSPER RETURNS SERIES IS CALCULATED AS THE TOTAL MONTHLY INTEREST, FEE AND NET RECOVERY PROCEEDS RECEIVED, NET OF CHARGE-OFFS AND SERVICING FEE, DIVIDED BY THE MONTHLY PRINCIPAL BALANCE; INCLUDING ALL LOANS BOOKED BETWEEN JULY 1, 2009 AND APRIL
30TH, 2016. PAST PERFORMANCE IF NOT INDICATIVE OF FUTURE PERFORMANCE.
3. INTEREST RATE SHOWN REPRESENTS WEIGHTED AVERAGE INTEREST RATE CHARGED ACROSS THE ENTIRE PROSPER PLATFORM DURING EACH CALENDAR YEAR.
PROSPER PLATFORM HISTORICAL
ANNUALIZED RETURNS
SUMMARY STATISTICS
MIN: 0.41% MAX: 1.08%
AVERAGE: 0.77% MEDIAN: 0.79%
STD. DEV: 0.15%
19. UNSECURED
CONSUMER
CREDIT1
10-YEAR
TREASURY
BOND3
HIGH YIELD
BONDS4
INVESTMENT
GRADE BONDS5 REITS6 MUNICIPAL
BONDS7 TREASURY BILLS3
YIELD 14% 2% 7% 3% 4% 3% <0.5%
RETURN 9% 10% 7% 6% 6% 5% 2%
DURATION 1.42 9.2 4.2 7.0 N/A N/A 0.2
UNSECURED CONSUMER CREDIT
RETURNS ARE ATTRACTIVE RELATIVE TO
OTHER FIXED INCOME ASSETS
1 BASED ON QUARTERLY DATA ON CREDIT CARD PERFORMANCE 1995-2015, REALIZED VOLATILITY OF CREDIT CARD ACCRUALS IS 2%. SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (US).
• COMPONENT: INTEREST RATE, CARD ACCOUNTS ASSESSED INTEREST (A), TERMCBCCINTNS; CHARGE OFF RATE ON CREDIT CARD LOANS (B), CORCCACBS
• RETURN = YIELD (A) - CHARGE OFF RATE (B)
2 DURATION FOR UNSECURED CONSUMER CREDIT BASED ON CURRENT WEIGHTED-AVERAGE FOR THREE- AND FIVE-YEAR LOANS ORIGINATED THROUGH PROSPER PLATFORM.
3 SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (US) 1996-2016.
4 SOURCE: BARCLAYS US CORPORATE HIGH YIELD INDEX 1996-2016.
5 SOURCE: S&P US INVESTMENT GRADE CORPORATE BOND INDEX 2002-2016.
6 SOURCE: S&P BMI US REIT INDEX 1996-2016.
7 SOURCE: S&P MUNICIPAL BOND INDEX 1999-2016.
20. THE SILVER BULLET
ONLINE
MARKETPLACES
• NO BALANCE SHEET
• FEE REVENUE
• RETAIL & INSTITUTIONS
BALANCE
SHEET LENDERS
• LINES OF CREDIT
• PROPRIETY CAPITAL
• RETAIN LOANS
HYBRID/
COMPOSITES
• COMBINATION OF
THE TWO
30. Disclosures
This presentation includes forward-looking statements. Forward-looking statements inherently involve many risks and
uncertainties that could cause actual results to differ materially from those projected in these statements. Where, in any
forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is
based on the current plans and expectations of our management and is expressed in good faith and believed to have a
reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished.
All forward-looking statements speak only as of the date of this presentation and are expressly qualified in their entirety by
the cautionary statements above. We undertake no obligation to update or revise forward-looking statements that may be
made in this presentation to reflect events or circumstances that arise after the date made or to reflect the occurrence of
unanticipated events.
All personal loans are made by WebBank, a Member of FDIC. All personal loans through Prosper are unsecured, fully
amortized personal loans. Neither Prosper Funding LLC nor Prosper Marketplace, Inc. are registered as an investment
adviser with any federal or state regulatory agency. The information contained in this presentation is for informational
purposes, and should not be construed as individually tailored investment advice or as a recommendation with respect to
any security or investment approach. This presentation has been prepared without regard to the circumstances and
objectives of its participants and should not be relied upon as authoritative or taken in substitution for the exercise of
judgment by any individual. Each individual should consider the appropriateness of any investment decision having regard
to his or her own circumstances, the full range of information available and appropriate professional advice. Prosper
Funding LLC and Prosper Marketplace, Inc. recommend that each individual seek independent investment and financial
advice concerning any services or investments discussed in this presentation.
Editor's Notes
3 clicks (9)
Click 10
Put in the two performances
Performance today primarily impacted by the 2015 vintage and borrower rate
