Erling Naess, a Norwegian shipping tycoon, once said, “God must have been a shipowner, he placed the raw materials far from where they were needed and covered two thirds of the earth with water.” If only it ended there. Instead, governments add new challenges to the equation by imposing tariffs and other policies that bring serious disruptions and extra miles to trade routes. President Biden recently signed an executive order revoking Keystone XL’s permit, shutting down the construction of the pipeline that was intended to supply heavy Canadian crude to the US Gulf Coast (USGC). In its place, Canada will now need to rely on marine transportation to export its crude oil, much of which is now expected to be sent across the Pacific Ocean to Asia rather than to the USGC. Additionally, USGC refineries are expected to in turn increase imports of heavy crude from the Arabian Gulf. Under former President Trump, tariff escalation between China and the United States dominated the headlines, with grains and containerized trade being affected the most. Soybean exports from Brazil to China, which surged in 2018, displaced shipments from the United States, again bringing additional ton-mile shipping demand.
In December 2019, in Wuhan, a virus quickly spread to the rest of the world throughout the ensuing year. Outraged, China’s significant trading partner, Australia, insisted on an independent investigation into the origins of the virus. An agitated China retaliated with a litany of trade sanctions and tariffs on Australian barley, coal, cotton, beef, wine, as well as many more commodities. Australia accounts for 40% of the world’s malting barley, well over half of which goes to China, the world’s biggest beer producer. With the reduced trade with one of their top trading partners, barley is piling up in Australia and will need to go to markets thousands of nautical miles further. On February 12th, we had the start of the Year of the Ox. In Chinese culture, the Ox is a valued animal with positive characteristics, such as being hardworking and honest. Oxen are earnest, low key and never look for praise or to be the center of attention. They gain recognition through hard work.
The world now has numerous vaccines. Granted we have variants of the virus too. Manufacturers are hard at work producing enough vaccines to inoculate the world and modifications to combat the variants. Cavalier approaches to COVID have been abandoned. Governments and people around the world are fully focused and working together earnestly to halt the spread, in an effort to again enjoy the company of family and friends.
As the world continues to adjust to a new normal, inventory replenishment is firmly supporting top of the cycle container ship charter rates while steadily maintaining the improving dry bulk market. In recent weeks, an injection of cargoes in the Black Sea and West Africa coupled with tighter tonnage brought a healthy recovery in the Suezmax sector, the only ray of light in the beleaguered crude oil and product tanker sectors.
The truth in Erling Naess’s statement about the dislocation between producers and consumers of hard and soft commodities, coupled with the all too often tariff tiffs, is what makes shipping and Marine Finance such an interesting alternative investment asset class. Other disruption/variables – port congestion, weather, over/under supply of ships – introduce volatility into the mix, making marine a potentially attractive asset class.
1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.
2 Represents a net estimated, unrealized annualized internal rate of return (IRR) of your portfolio and is based by reference to the effective distribution dates and amounts to and from the investments, as well as any outstanding principal and accrued and unpaid interest as of the current date, after deduction of management fees and all other expenses charged to the investments.[read more]
3 "Annual interest" or "Annualized Return" represents an annual target rate of interest or annualized target return and "term" represents the estimated term of the investment. Such target interest or target returns and estimated term are projections of the interest or returns and or term and may ultimately not be achieved. Actual interest or returns and term may be materially different from such projections. This targeted interest or returns and estimated term are based on the underlying investments held by the applicable.
4 Reflects the initial quarterly distribution declared by the board of directors on February 6, 2020, which will be payable to stockholders of record as of June 10, 2020, and the initial offering price of $10 per share.
5 The Fund will cease investing and seek to liquidate the Fund's remaining portfolio no later than 48 months after the Fund's initial closing. It may take up to twelve months thereafter to fully monetize any remaining illiquid investments in the Fund's portfolio.
6 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.
7 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including May 3rd, 2021, after deduction of management fees and all other expenses charged to investments.
8 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.
No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.
Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.
Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.
Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.
Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.
Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.
Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments.
Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.
Banking services are provided by Evolve Bank & Trust, Member FDIC.
Investment advisory services are provided by YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission.
Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.