Last I heard, Prosper changed their business model since then. Higher amounts and better verification, etc.I'm looking at this a different way. I'm taking small pieces of the lower graded loans ... at higher interest rates. In theory (and in practice), the default rate will be higher than the higher graded loans, but the higher interest rates will make up for it. Ask me for the results in 3-5 years :-)I'm also doing it to diversify my fixed income investments. I have CPI linked bonds (and *NO* non-inflation-adjusted bonds), some TIPS, some I-bonds, etc. I have some other types of fixed income. But I have no peer-to-peer fixed income and figured it might (just might, only time will tell) make a good fixed income addition to my portfolio. It's also kind of fun.