The bonds are designed to be competitive for those wanting a higher return than cash savings accounts, with a bit more risk, not a lot more risk.
Amongst other features: - we are putting in place 2% loss coverage - which is 5x our total losses over the last three years (40bps); or about 15x the annualised loss ratio.
- diversified: minimum 100 loan positions, although likely to be closer to 500+
- secured: max LTV of 75%, although like to be closer to our current portfolio of 58% LTV.
We're not looking to chase high rates with these bonds. Bear in mind the risk when seeking to compare with others. Not all bonds are the same...
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