The senior pool is the lower-yielding and first priority pool out of the two options. The yield is lower because when repayment from the borrower is made, the senior pool is the first to receive repayment towards interest and principal owed. After the target return is reached on the senior pool, the remainder goes to the junior pool.
What is the senior pool? How is the senior pool different from the junior pool? Why are the yields different?
Written by Ishan @ Cibola
Updated over a year ago