Repayment of principal and interest in an event-based opportunity

January 30, 20182 min read
Repayment of principal and interest in an event-based opportunity
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When investing in Legal Finance, event-based payments occur when cases within a cross-collateralized portfolio are settled or won. In the interim, investors accrue interest on the entire loan portfolio. When cases settle, the amount of principal and interest repaid to individual investors depends on the amount of accrued interest at the time of the settlement.

As more settlement events occur within the portfolio, investors continue to receive payments until enough cases have settled or been adjudicated to repay the loan and target interest in full. The following infographic provides more detail on how Yieldstreet calculates the amount of principal and interest investors are repaid after a settlement event.

Investors invest in a cross-collateralized portfolio of legal advances

Scenario A
Scenario B
section 2

For additional questions regarding Yieldstreet or our Legal Finance offerings, please email us at [email protected].

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