by Naveen Malhotra | Portfolio Management & Servicing
At Yieldstreet, when a loan defaults, we take every step possible to implement an effective work-out strategy that will serve the best interest of our investors. A default doesn’t necessarily mean loss. With the right steps, it’s possible to recover the full investment at the targeted return. Let’s take a look at a case study for a recently resolved default.
At the highest level, defaults happen when borrowers do not comply with material terms of a loan agreement. In January 2020 we launched Irwindale Industrial Financing on the Yieldstreet platform. Investors had the opportunity to invest in a junior position of a first mortgage loan secured by an industrial property in Irwindale, California. The offering had an expected duration of 24 months, with a target annual interest rate of 7.75% expected to be paid to investors.
Below is a visual representation of the work-out strategy that was implemented to achieve full recovery on the investment.
As always, for any additional questions you may have regarding Yieldstreet offerings and our workout process, please reach out to us at [email protected].
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