Do these investments have risk?

March 31, 20151 min read
Do these investments have risk?
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Like any investment, investment offerings on Yieldstreet carry investment risk, which should be evaluated on a case-by-case basis and prospective investors are urged to read the risk factors for each applicable offering. We strive to list investments on Yieldstreet that are backed by strong collateral, provide attractive returns and have low correlation to the overall stock market.

Yieldstreet evaluates our borrowers, just as we evaluate the originators, and we provide prospective investors the information to assess the investment.

Here are a few other risk factors you should be aware of:

  • Default Risk: The risk that the borrower will not be able to repay the associated interest and principal on a particular loan.
  • Principal Risk: The possibility that a lender won’t get back some or all of the principal balance, the amount that they had originally invested.
  • Duration Risk: The borrower could pay back the loan amount earlier or later than the expected offering length. All durations associated with Yieldstreet investment offerings are “target durations” and while we do everything we can to hit those targets, in certain situations, an offering can end or extend before or after that target duration.
  • Inconvenience Risk: Investors will not have access to their funds until the investment fully matures, thus reducing liquidity. In addition, some of our litigation investment offerings produce event-based payments which reduce payment schedule predictability.