Back in March, I blogged about Prosper.com, a new social-networking style service that matches up borrowers and lenders and provides a host of services to both.
After 3 months, I've heard some disappointing news from a Prosper investor: 3 loans are dilenquent, and one of those never made a single payment. I was optimistic about Prosper's potential default rate, but what I'm hearing isn't encouraging.
I still think the service has a lot of potential, but it seems that making smaller loans and spreading the money out as much as possible is the best way to maximize one's return. I'll keep my eye on it: I'm curious about the forthcoming collection efforts on those delinquent loans.