Prosper released their regular review of results, and the commentary on the marketplace interest rates, and how they reflected market shifts is interesting.

Prosper People-to-People Lending Market Survey: Financial News – Yahoo! Finance

What is interesting about these percentage drops is how close they are to what was widely anticipated to be a quarter-point instead of a half-point reduction by the Fed. However, what remains to be seen is whether the market will continue to push rates down further in line with the Fed’s surprise move.

What is also of note, is the anticipated trend out of sub prime lenders. Prosper exited most sub prime early in 2007, and this is reflected in the results (newest on the left).

Mix of Funded Borrowers

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  2007  2006   September September Year-to-  Year-to-   Since
              2007      2006       Date      Date   Inception

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Prime             30%       21%       30%       26%       28%

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Near Prime        62%       56%       57%       50%       55%

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Sub Prime         8%        24%       13%       24%       17%

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