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Can an investment extend past its maturity date?

Luke V

Yes. The “duration risk” refers to the risk that the Borrower may pay back the loan amount earlier or later than the expected investment length. All durations associated with Yieldstreet investments are “target durations” and while we do everything we can to hit those targets, in certain situations an investment can end or extend before or after that target duration.

For example, most real estate investments on the platform are financed using short-term bridge loans to provide the Borrower with the flexibility to repay the loan early, should they wish, which would reduce the amount of interest they pay (and thus, the ultimate return to the investor). In other loans, payment schedules have been extended past targeted durations to help the Borrower manage through adverse conditions that may be impacting broader markets or specific to the Borrower and/or their business. Similarly, the majority of the litigation investments we list on the platform are structured with cases of varying estimated settlement dates. However, we cannot be certain of the exact dates these cases will settle given the nature of civil litigation.

Last updated: 8 months ago

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