📎Interest Rates Calculation
Last updated
Last updated
Based on the pool interest rate, interest rates for specific tranches will be determined. junior generally having high, variable interest and senior having fixed stable interest rate. (see example below)
The pool interest rates calculation is dependent on several factors such as asset valuation(NAV), underlying asset risk profile, asset originator's credit worthiness, market conditions(benchmark interest rate), default probability, loss given default etc.