It could be because the estimated return is only 5.10%.
There is a recent listing falling within the Conservative Plan. The interest rate offered on the listing is not high enough to attract PP bids from PP lenders that did not update their PP specifications and are still using the old minimum bid rates. So this listing will only receive bids from those using the new PP metrics.
This listing only generated 8 PP bids, seen firing at 9:24 PM on June 5, 2008. In the past I’ve seen PP bids fund entire listings at the minimum bid rate. That doesn’t appear to be the case anymore.
Prosper, if you’re listening, the PP rates on the conservative slice are too low…
2 comments:
The timing of the default Portfolio Plan bidding is a bit of a mystery. In tracking other listings that match dPPs, it's appeared to me that much of the bidding happens in the final day, and even final few hours of a listing. I'll bet this one fills up with dPP bids before it's done. We'll see.
Which is not to say that I disagree with your basic premise that the interest rates on many of the plan slices are way too low.
hi, anonymous,
From what I have observed, PP bidding (at least the 4 plans that Prosper has set up) happens when the listing first hits the PP radar screen, which is when the listing is created.
One can see these bids clustered over a very short period of time. In this example, all 8 hit within 1 minute. These are PP bids.
The other bids shown on the listing are either manual bids, or lenders that just turned on their portfolio plan, just funded their PP with cash, or customized PP bids.
Those bids you see on listings during the final day and last few hours are mostly manual bids, or are even perhaps bids using sniping software. A plethora of last day bids has always been the case on Prosper.
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