Posted on March 11th, 2013
Today, we are excited to provide our lenders with a new API service that includes a comprehensive set of tools designed to help lenders meet their investment expectations. With more than 550 data points, including access to raw listing data, lenders can now build the tools they need to customize their Prosper experience, including enhanced data sets for analysis and reporting, along with the ability to bid through their own system.
The new API was developed in partnership with some of Prosper’s most active lenders, who have provided valuable feedback that has helped shape the features and tools available in the new API. Over the past month, these lenders have tested the API and worked closely with us to help improve its functionality so that we can provide the best experience possible for our lenders.
“The improvements to the new API are a game changer for Prosper and for lenders who are looking to build custom tools for managing their investments on the platform,” says Michael from Nickel Steamroller. “We are especially excited about the expanded data points as well as the speedier performance, which lets us build robust tools in less time.”
Key improvements and benefits to lenders through the new API include:
- Expanded access to credit profile data points. The new API offers more than 475 credit bureau variables and more than 550 data points total.
- Easy access to Notes, with a more comprehensive break down of principal, interest and other fees.
- Details down to the individual Note level, including specifics about payments and reason for default.
- Improved filtering and querying that make it easier to use specific criteria to search for Notes. For example, only C rated Notes less than $10,000.
- For lenders that want to build their own tools, they now have access to the data through a RESTful interface.
- The RESTful interface of the API supports OData filter query operations.
- Unique login credentials for API users restricted to reviewing and investing funds only. This means no access to bank information or account settings so you can keep your API tools separate from your Prosper account.
The new API is the latest in a series of recent enhancements for our lenders as we work to provide the best possible peer-to-peer lending experience. Most recently, we unveiled new protections for our lenders, and in December, we released new data enhancements, which included expanding investor data access as well as the underwriting information preview. Keep an eye out for future enhancements to our lender services coming soon.
If you are a lender on the Prosper platform, and are interested in learning more about the new API and obtaining access for your lender account, please email us at firstname.lastname@example.org. We always welcome your comments and feedback below as well.
Posted on October 16th, 2012
September was an eventful month at Prosper and for a number of reasons. First, we had the good fortune to have Josh Tonderys, previously Senior Director at Barclaycard US, join the Prosper team as our Chief Risk Officer. He brings a wealth of direct credit experience that will help us scale the platform while continuing to provide strong investor returns. Second, we were listed 4th on The Wall Street Journal’s list of the Top 50 Venture-Backed Start-Ups for 2012. Third, we set monthly records for originations, listings, and cash on the platform in September. All in all, a great month!
With $16 million in originations in September, Prosper continues to focus on providing a high yield, short duration alternative for investors. Which brings us to this month’s commentary from our Chief Investment Officer, Joe Toms.
LOOKING FOR YIELD: DURATION RISK VERSUS CREDIT RISK IN FIXED INCOME
I recently came across an article that quoted Paul O’Brien, head of fixed income at the Abu Dhabi Investment Authority (with estimated assets under management of $627 billion), that we felt perfectly summarized the challenges confronting fixed income investors today. He writes:
“The return for bearing duration risk is the lowest it has been in our careers. The return for credit risk, on the other hand, is probably average. If you take the history as a benchmark, then it’s fair to say that the return from fixed income is probably better served by taking credit exposure, rather than duration exposure.”
We think this quote confirms the point we have been making over the past year, that short-duration, high-yield portfolios like Prosper’s allow investors the opportunity to generate yield while taking little interest-rate risk.
Consider the historical evidence of Prosper 2.0 vintages that are at least 12 months old. The data shows not only the stability of the different vintages but that, by the end of month 12, the vintages returned to the investor 50% of their initial investment. In other words, through the combination of prepayments, straight line amortization of principal and interest, investors receive a tremendous amount of cash flow early on in the investment.
This high cash flow provides a number of clear and substantive benefits. It reduces interest rate risk while providing tremendous flexibility to either re-invest in Prosper Loans and/or allocate to other promising investments. In short, it allows investors to earn a considerable premium in yield relative to most other fixed income investments with little interest rate risk while providing significant cash flows. While admittedly biased, we think that the combination of high yields, short durations and strong cash flows make a compelling investment case.
More information on September’s monthly performance update can be found here. For further explanation of this commentary or with any other questions or comments, please contact our investor marketing team at email@example.com or 1-877-611-8797.