Diversified Loan Strategy
Lending with impact and delivering stable high-yield return through economic cycles.
- Offering a high yielding credit opportunity through investing in direct loans
- Active strategy to buy the best loans across the best originators
- LoanClear: one-stop shop investment management using proprietary analytics, reporting and trading platform
The Dynamic Credit Diversified Loan Strategy focuses on sourcing granular loans from marketplace lenders and other originators all over the globe. The target loans are consumer and small business loans that both fill a need for borrowers and, through rigorous quantitative and qualitative analysis, have relatively low projected default rates. Dynamic Credit sees an opportunity to invest through economic cycles by targeting the highest quality loans at attractive rates in both new origination as well as secondary trading markets.
Recognizing the opportunity in responsible lending
As an innovative direct lender itself and longstanding credit asset manager, Dynamic Credit recognizes the natural fit to add the Diversified Loan Strategy to the existing suite of offerings. Our investors can gain access to a high-yielding asset class that is projected to grow, diversified from traditional fixed income, with a relatively short duration. Over the past decade, alternative lenders have made credit available increasingly cheaper and easier to access for borrowers through innovations in speed and accuracy of loan application processing and data verification. We believe that our unique direct lending and asset management business mix, combined with our proprietary analytics platform, allows us to identify the best loans from the best lenders and drive attractive risk-adjusted returns for investors.
Combining experience with technology
Dynamic Credit will target a robust pool of actively selected loans from lenders globally. Our active selection process is based on thorough quantitative analysis that is complemented and verified by fundamental credit analysis and active engagement with lenders. While advanced data analytics is extremely useful to identify interesting investment themes, we do not believe in “black boxes”. Any strategy must be scrutinized and validated by our experienced credit team before they are used to put investor money at risk.
LoanClear: one stop shop portfolio management for investors
LoanClear (spin off from Dynamic Credit) provides a loan analytics and reporting platform and marketplace. It facilitates loan investments by institutional investors in diversified portfolios, both from marketplace lenders and bank originators. Through its loan marketplace it helps create liquidity in loan investments. By using LoanClear, Dynamic Credit can offer an active selection strategy to investors by harvesting and analysing vast amounts of data in order to benchmark loans from various platforms.