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Annual Returns Model
Breaking down returns for junior and senior tranche participants
Investors are rewarded with stable, de-risked, inflation-beating yields, along with access to trillions of dollars of real world origination. Investors may come from a variety of channels, including CeX, DeX, family offices, institutional investors, private HNI investors and other treasuries.
As an example, say a pool originated has a trache profile of 80% senior, and 20% junior. With the financing rate at 8.4%, the senior tranche earns 6%, and junior tranche earns 18%.
Following sheet illustrates certain example scenarious of the model: