The junior pool is the higher-yielding pool and second priority pool out of the two options. It carries the risk of first-loss capital in relation to the senior pool. The junior pool has the lower return priority and the junior funds are used to cover losses in the event of default to protect the senior pool investors.
What is the junior pool? How is the junior pool different from the senior pool? Why are the yields different?
Written by Ishan @ Cibola
Updated over a week ago