At Yieldstreet, we work in tandem with our origination partners to follow a set of protocols when it comes to the servicing of our portfolio. Yieldstreet investments have largely performed in-line with initial expectations. However, investors need to understand that they must consider the risk of defaults to make an informed decision when investing with us.

The term ‘default’ may create anxiety for many investors, but the truth is, there is no such thing as a risk-free investment. In the simplest terms, a default occurs when the Borrower fails to comply with a material term of the underlying loan agreement and the Lender puts the Borrower on notice of its intent to enforce its rights over the loan and the underlying collateral.

In asset-backed lending, the Borrower must provide some form of collateral to support a loan. Depending on the terms of the loan agreement, if a default is declared, the Lender is typically able to seize the collateral by enforcing its rights through the foreclosure process, or through an alternative workout strategy deemed appropriate for the specific situation.

Should a default occur in connection with one of your investments, Yieldstreet will pursue recovery to the best of our ability and we have demonstrated our ability to do this. As an example, check out this case study of our Orlando Hotel Portfolio investment.