| - Locked for 5–7 Years: Full principal and interest only upon loan maturity.
- Syndication Delays: Selling participations can take months, with complex negotiations and regulatory paperwork.
| - T+1 Settlement: Secondary trades settle on-chain within one business day—funds available almost immediately.
- Liquidity on Demand: Place a sell order any time; live market depth shows volume at each price level so you know how quickly you can exit.
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| - High Barriers: Syndicated loans and private-debt funds often impose $25K+ minimums, limiting diversification for smaller investors.
- Concentrated Exposure: Large minimums force you into single-asset or single-sector bets.
| - Fractional Tokens at $1,000 Minimum: Democratizes access—invest across multiple pools to mitigate concentration risk.
- Scaled Participation: Add several $1,000 tranches across varied borrowers, LTVs, and industries to build a well-diversified portfolio.
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Price Discovery & Transparency | - Opaque Pricing: Broker-driven OTC trading yields wide bid-ask spreads (5–10%).
- Delayed Information: You rely on quarterly servicer reports or broker updates to gauge loan performance and collateral depreciation.
| - Live Order Book: Real-time bids and asks display as % of par (e.g., 102.5%), providing clear price discovery.
- On-Chain Transparency: Collateral values, payment schedules, and borrower metrics update continuously—no more waiting for end-of-quarter reports.
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Risk Management & Reporting | - Fragmented Data: Performance metrics, default remediations, salvage valuations scattered in spreadsheets—costly to consolidate for audits.
- Reactive Alerts: You learn about deteriorations only after regulators intervene or servicers inform you.
| - Integrated Analytics & Alerts: Scenario-analysis tools model default or collateral value shocks. Real-time notifications for covenant breaches or LTV changes let you exit or hedge proactively.
- Immutable Audit Trail: Every transaction and document stored on-chain or in a digital vault—audit-ready at any moment.
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| - Fixed or Floating Sit on Book: Yields often hover in mid-single digits, and coupon resets occur only at scheduled intervals—reducing flexibility to capture rising-rate environments.
- Constrained Structures: Limited to straight debt or simple CLOs—no dynamic curves.
| - Choice of Fixed (e.g., 8.25% SOFR + 5.75%) or Floating: Align tokens with your rate view; smart contracts adjust distributions automatically.
- Customizable Tranches: Issue senior and mezzanine token classes within the same pool to match different risk appetites.
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