Annual Returns Model
Breaking down returns for junior and senior tranche participants
Last updated
Breaking down returns for junior and senior tranche participants
Last updated
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: