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From YouTube: Collateral Onboarding Call #37: Cauris Global Fintech Fund | Wednesday, August 25 4PM UTC
Description
An open discussion where we discuss projects and potential assets for MCD.
Intro by @JuanJuan
Presentation by SAM_CAURIS
"Cauris is a mission driven company that applies advanced technology to solve financial issues while providing high risk adjusted returns to its investors.
We aim to give 100 million more people access to capital. We believe that access to credit is key to empowering individuals and enabling economic growth."
A
Hello,
everyone
welcome
to
another
maker,
dao
collateral
call.
My
name
is
juan,
I'm,
the
facilitator
of
the
sustainable
ecosystem
scaling
core
unit,
and
today
we
have
another
real
world
assets,
call
we're
going
to
be
exploring
the
well
chorus,
and
hopefully
I'm
not
mispronouncing
it
and
the
team
behind
it.
B
B
First,
I
studied
in
west
africa.
I
was
actually
born
there
and
worked
for
mtn
mobile
money.
It
has
45
million
customers
today,
it's
first
time
access
to
financial
services
via
mobile
phones.
It's
currently
valued
at
five
billion
dollars.
It
was
a
good
good
experience
and
then
worked
in
latin
america
also
for
fintech
that
then
sold
to
visa
called
the
yellow,
pepper
and
I
went
to
work
for
the
other,
guys,
mastercard
payment
network.
B
And
lastly,
I
was
the
the
head
of
product
and
credit
at
a
consumer
lending
fintech
that
operates
mainly
in
latin
america
and
south
east
asia
called
juvo.
And
what
really
struck
me
there
is
the
realization
that
you
know
fintechs
are
breaking
new
grounds
with
with
lending
use
cases
which
I
would
call
you
know.
Second
generation
type
services
after
you
know
what
started
with
peer-to-peer
lending
10
years
ago
and
and
the
supporting
infrastructure
lags
behind
right.
B
Sometimes
it's
regulation,
but
another
is
financing,
and
you
know,
if
you
think
of
institutions
lending
to
those
fintechs,
it's
a
it's
a
supporting
role,
and
so
that's
what
led
to
me
wanting
to
move
to
quarries
and
and
thinking
or
creating
the
company
and
thinking.
Okay,
there
is
an
opportunity
in
providing
financing
to
those
fintechs
that
they
do
need
supporting.
So
we'll
tell
you
more
about
it
and
azer.
D
D
So
as
of
pagan,
I
was
actually
born
and
raised
in
west
africa,
in
burkina
faso,
where
I
am
currently
but
I
do
live
in
new
york
so
prior
to
co-founding
corey's,
I
was
recently
with
mastercardis.
Actually
that's
where
alex
and
I
met,
and
I
was
leading
the
analytics
function,
the
analytics
and
inside
function
within
the
cyber
and
security
division.
D
I
also
work
in
the
risk
management
division
at
mastercard
where
on
the
road
and
risk
managed
mastercard
customers,
including
large
financial
institutions,
and
also
fintechs
prior
to
mastercard.
I
worked
at
goldman
sachs
in
structured
finance
within
the
investment
banking
division
so
where
I
originated
structured
and
distributed
over
10
billion
dollar
structure
transaction,
mainly
in
the
auto
and
equipment
leasing
sector.
So
I
began
my
career
actually
in
risk
management,
so
I
also
stayed
within
goldman
sachs
working
on
deal
structure,
credit
agreement,
negotiation,
derivative
risk
management.
D
So,
in
short,
I
say
that
my
I
bring
a
lot
of
experience
in
in
measuring
and
managing
risk,
while
at
the
same
time
structuring
transaction
that
makes
sense
for
our
customers.
So
we
deal
with
a
unique
set
of
customers
that
have
unique
needs
and
we
really
have
to
be
creative
on
how
we
actually
serve
them.
And
so
that's
what
we
do
of
course,
so
josh.
C
Yeah,
thank
you,
hello,
everyone,
so
I'm
charles
packer
and
I'm
the
head
of
engineering
at
coors.
I
have
over
20
years
of
software
engineering
experience
most
recently
in
the
fintech
space
at
juvo,
where
I
worked
with
alex
and
was
the
director
of
both
the
data
and
application
engineering
teams.
So
at
juvo
I
oversaw
data
ingestion
analytics
and
loan
decision
integrations
where
our
platform
processed
millions
of
transactions
per
day,
while
building
financial
identities
for
the
underbanked.
E
Hey
hello,
everybody!
It's
a
pleasure
to
be
here
today.
My
name
is
ramesh
donoraj,
I'm
an
advisor
to
chorus.
I
started
out
my
career
as
an
investment
banker
and
venture
capitalist,
primarily
focused
on
early
stage
software
businesses,
and,
most
recently
I
worked
as
an
investment
manager
with
fortress
investment
group
in
their
special
situations.
Private
credit
practice,
I'm
also
a
lawyer
having
practiced
private
credit
specialized
in
private
credit
at
sidley,
austin
and
in
blank
rome,
and
excited
to
work
with
chorus.
B
Thank
you
so
so
we're
here
to
address
your
questions
right,
so
we'll
we'll
walk
you
through
the
slides
and
as
mentioned
earlier,
please
chime
in.
If
you
have
questions
so
so,
we've
briefly
touched
on
it,
but
what
we're
looking
at
is
look
expanding
economy,
consumer
lending,
you
know,
consumers
requiring
financing,
small
medium
enterprises
needing
financing,
really
key
to
empowering
individuals,
promoting
growth
right
and
what
we
see
is
a
gap
of
5.2
trillion
dollars
in
financing
according
to
the
world
bank.
So
it's
a
huge
opportunity
for
us.
B
The
big
big
big
target
we
set
for
ourselves
is
100
million
people
getting
access
to
capital
right
and
and
as
mentioned
earlier,
it's
the
fintechs
are
the
foray
of
it
right
and,
and
so
what
we
want
to
do
is
support
them,
and
so
what
that
leads
us
to
is
the
realization
that
hey
there's
a
revolution
happening
on
d5,
right
and
maker
is
the
forehead
of
it.
The
way
I
see
it
is
maker
has
been
generating
immense
wealth
right
and
what
you
do.
B
Typically,
when
you,
when
you
get
a
lot
of
wealth
at
this
speed,
is
you
seek
to
diversify
right
and
now
you
you
want
at
least
that's
my
understanding.
You
want
to
have
sets
that
provide
more
stability
and
and
so
that,
coupled
with
the
need
of
fintech
and
and
how
it's
enmeshed
into
local
economies
across
many
geographies,
we
think.
Okay,
that's
that's
a
great
opportunity
to
further
financial
inclusion,
working
with
the
fitex
providing
capital
and
for
you
you
know,
defy
actor,
gaining
instability.
B
So
a
little
bit
of
you
know
take
a
step
back.
Look
at
you
know
who
are
our
target
end
users
right
understanding
what
it
is
here
that
we're
discussing,
and
so
we
split
it
in
three
categories.
You
know
for
those
who
are
not
super
familiar
with
the
fintech
space,
because
this
presents
three
different
user
types.
So,
on
the
on
the
left,
you
have
adjacent,
who
represents
consumer
lending
right,
so
individuals
who
lack
an
income
history
and
would
rely,
have
access
to
unsecured
loans
or
buy
an
hour
pay
later
right.
B
So
it's
a
it's
one,
category
of
fintech
activity,
and
so
by
now
pay
later
you
may
have
heard
of
the
square
acquisition
of
afterpay
at
27
billion
dollars.
There
is
also
a
firm
that
did
an
ipo
recently,
and
so
there
are
companies
like
lipolater
that
operate
operates
in
africa.
That
does
buy
now,
pay
later
pedro
in
very
being
in
mexico.
That
issues
you
alone
with
your
phone
as
a
collateral
and
that
can
log
through
software
and
then
will
provide
you
access
to
consumer
loans.
B
So
it's
a
lot
of
innovation
happening
there,
and-
and
so
I
picked
three
companies
each
of
them
operating
in
a
different
continent,
and
I
did
that
for
each
category
here,
right
so
lipa
later
in
africa,
pedro
in
mexico
and
pocket
in
india,
then
we
moved
to
the
gig
economy
right
with
albert
dupont,
who's
in
france
and
look.
He
wants
to
do
deliveries
of
food
right
and
it's
his
first
gig.
B
So
so
she
buys
from
unilever,
has
a
history
of
payments
that
opens
the
way
for
another
class
yet
of
financial
services,
invoice
factoring
supply
chain
financing,
mbd
financing.
It's
also
called
because
the
services
will
be
embedded
in
the
supplier
and
so
pesesha
in
kenya.
Flexi
loans
in
india
and
monkey
in
latin
america,
so
different
value
chain,
different
understanding,
similarities
across
all
in
terms
of
customers,
the
use
of
data,
the
understanding
of
the
local
context.
So
that's
what
we
specialize
in,
but
we
don't
deal
directly
with
the
end
users
right.
B
That's
a
heavy
lift!
If
you
take
the
training
of
models
to
make
good
decisioning,
I'm
talking
about
machine
learning
models,
you
have
to
have
a
very
deep
understanding
of
the
user
flow,
the
context,
etc,
to
do
a
good
job
on
your
decision,
so
so
at
the
individual
level
at
the
user
level.
That's
on
what
we
do!
What
we
do
is
we
work
with
the
fintechs.
B
B
It
gives
the
company
a
lot
of
control
over
the
loan
book
and
and
a
deep
understanding.
I
mean
love
ability
to
adapt
to
a
changing
context.
So
when
we
see
kobe,
for
instance,
companies
that
have
gone
through
kobe,
it's
a
very
good
indication
of
their
ability
to
actually
manage
risk
and
adjust
to
a
changing
environment,
so
postcode
actually
right
now.
I
find
it
to
be
a
really
opportune
time
because
you
kovid
has
hit
the
sector.
B
And
we
start
with
half
a
million
to
10
million
in
financing
set
up
that
financing
facility
for
those
fintechs,
and
then
you
can
scale
over
time,
but
that
that's
the
starting
step
for
the
financing
and
one
last
thing
I'll
mention
about
those
fintechs-
is
that
there
is
financing
typically
available,
starting
at
5
million.
That's
that's
generally.
The
the
stunning
number
and
what
the
fintechs
suffer
from
is
the
inflexibility
of
the
lending
terms
that
they
get
it's
it's
something
that
I
saw
being
on.
B
The
other
side
of
feedback
side
is
you'll,
be
offered
a
15
million
dollar
facility
with
the
first
trench
of
five
million,
and
then
you
have
to
take
a
million
every
month.
Well,
five
million
in
in
small
loans
like
we're
discussing,
is
just
a
lot
of
money,
and
so,
whatever
rate
you're
being
given,
ends
up
hitting
you
really
hard
because
of
your
low
utilization
rate.
And
so
what
we
offer
here
is
flexibility
in
the
terms
and
so
I'll
pass
it
to
us
there
to
explain
how
we
approach
it.
D
Okay,
thank
you
so
much
alex
for
the
excellent
segue
into
our
investment
management
process.
So
basically,
our
our
manager,
our
process,
basically
cuts
across
both
worlds.
If
you
allow
me
to
that
term
right,
we
work
of
change
to
basically
kind
of
structure,
the
agreement
with
the
individual
fintech
that
we
are
lending
to
and
that
basically
results
into
a
secure
credit
agreement
and
and
any
debenture
certificate.
D
So
on
our
underwriting
framework,
we
are
a
strong
believer
that
a
great
structure
product
begins
with
a
strong
underlying
asset
right.
So
you,
if
you
securitize
bad
assets,
you
will
get
a
bad
security
secure
secured
product
and
to
that-
and
our
underlying
underwriting
includes
both
qualitative
and
quantitative
assessment
of
the
fintech
in
question.
So
we
assess
first,
the
fintech
leadership
team
and
the
strategy
to
make
sure
that
they
are
able
and
capable
of
executing
on
whatever
strategy
that
they
have
and
that
that
strategy
is
sound.
D
We
also
assess
the
operational
robustness,
making
sure
that
they're
that
we
understand
exactly
the
loan
decisioning
and
processes
how
they
disperse
cash.
What
is
your
collection
policy
to
make
sure
that
everything
that
the
strategy
in
the
operation
side
basically
kind
of
checks
out-
and
here
we
have
alex
and
charles
that
have
a
very
deep
domain
expertise
having
worked
for
many
years
at
one
of
those
fintechs?
So
basically
they
can.
They
know
how
to
differentiate
between
the
good
and
the
bad
types
of
fintech.
D
Is
there
going
to
be
a
wreckage
or
not?
And-
and
that's
also
my
domain
expertise
done-
that
on
a
number
of
securities
and
a
lot
of
securitization.
So
that's
basically
analysis.
That's
done
so
once
we
finish
those
three
assessments,
we
provide
an
overall
assessment
that
determines
right
the
pricing
and
the
maturity
of
the
loan
that
we
give
to
the
fintech
right
so
that
basically
kind
of
results
in
the
score
and
based
on
the
score.
We
basically
provide
pricing,
which
is
the
interest
rate
and
also
for
how
long
we
want
to.
D
D
So
basically,
we
have
like
advanced
rates
that
are
dynamic
and
ramesh
will
actually
walk
you
through
the
mechanics
of
that
and
also
various
protective
covenants
that
we
have
in
place
that
basically
make
sure
that,
whatever
securities
agreement
that
we
have
with
the
fintech,
it's
inspirable
and
it's
very
strong
in
terms
of
protection
that
we
have
to
protect
ourselves
and
also
to
protect
the
poor
so
like.
If
we
move
on
to
the
next
stage,.
E
E
We
look
at
formation
issues
with
respect
to
each
entity
and
the
particular
nuances
of
lien
structure
in
every
jurisdiction
in
which
there
is
a
borrower
to
which
we
lend
the
due
diligence
on
the
loan
book.
That
azer
mentioned
also
informs
our
protective
measures.
So
in
essence,
our
covenants
that
we
draft
in
and
those
covenants
are
very
sensitive
to
each
particular
business
model
and
each
particular
loan
book.
E
For
instance,
we
have
a
dynamic
borrowing
base,
so
as
a
company
improves
or
blown
book
deteriorates,
our
covenants
are
actually
reactive
to
the
particular
situation
of
any
given
borrower.
In
addition,
the
structural
protections
you
have
on
this
slide
portray
the
fact
that,
at
the
end
of
the
day,
we're
really
an
asset
based
lender.
E
So
the
number
here
150
percent
collateral
on
the
drop,
which
means
first,
that
when
we
consider
an
eligible
company
receivable
eligible
in
our
borrowing
base,
we
have
to
make
sure
that
that
receivable
adheres
to
the
underwriting
policy
of
the
borrower.
And
we
take
a
close
look
at
that
underwriting
policy
and
even
to
allow
a
receivable
to
be
in
our
loan
book
as
an
eligible
receivable.
Once
we
determine
that
an
receivable
is
eligible.
E
We
then
take
a
pretty
conservative,
a
haircut
to
that
so
20
to
30
percent
haircut
to
an
eligible
pool
of
receivables
and
then
from
there
that
collateral
pool
is
in
essence
trash
between
the
senior
tranche,
the
drop.
What
we
call
the
drop
tranche
and
the
junior
tranche,
which
is
the
tin
trunk
so
on
the
drop
crunch
where
you
may
be
participating,
were
collateralized
at
the
end
of
the
day,
150
on
the
underlying
collateral
and
alex,
if
you
would
actually
just
go
back
to
the
prior
slide.
E
We
look
at
the
account
management
system
of
the
companies
and
in
essence
where
bank
accounts
are,
and
we
ensure,
as
part
of
our
lean
protection,
that
we
have
either
springing
or
immediate
control
of
any
of
those
bank
accounts.
Should
a
borrower
become
in
default,
diversified
pool
here,
if
you
think
about
any
one
of
our
borrowers,
each
one
have
has
hundreds,
if
not
thousands,
of
underlying
receivables.
E
D
Yeah,
thank
you
so
much
for
a
mess.
So
basically,
on
this
slide,
what
we
are
depicting
is
basically
a
a
depiction
of
what
we
think
is
a
very,
very
solid
pool,
and,
as
ramesh
mentioned,
we
are
landing
against
receivables
on
the
end
to
which
we
actually
do
an
advance
rate,
and
then
there
is
the
subordination
of
a
team
in
in
regards
to
the
job
that
also
provides
additional
protection.
So,
with
maker
being
an
investor
in
withdrawal,
we
ex
we
based
on
our
methodology.
We
ex.
D
We
believe
that
there
there
is
going
to
there
needs
to
be
about
45
up
to
45
of
default
under
on
the
underlying
receivable,
for
the
job
to
basically
get
any
loss.
So
basically
you.
Basically,
the
level
of
protection
includes
the
advance
rate
right,
so
basically,
the
equity
that
was
put
in
by
the
borrower.
D
Then,
if
that
is,
if
that
is
basically
consumed,
then
you
move
into
a
team
and
before
the
job
basically
gets
any
loss.
So
if
we
believe
that
45
default
is
a
very
things
have
to
go
very,
very,
very
wrong
for
us
to
actually
see
that
level
of
default,
and
also
we
estimate
that
all
the
portfolios
are.
The
companies
that
we've
been
looking
at
default
rates
have
been
less
than
five
percent,
so
in
the
two
or
three
percent
in
the
delinquencies.
D
So
assuming
right,
even
making
the
very
conservative
assumption
that
we
have
a
portfolio,
a
pool
that
has
a
five
percent
default
rate,
we
have
to
basically
have
nine
times
the
expected
default
rate
before
we
actually
get
a
loss
into
the
drop
right.
So
that's
very
significant
protection
that
that
is
there
and
for
those
of
you
guys
who
are
familiar
with
securitization
on
an
abs
transaction
to
have
a
triple
a
rating.
D
So
I'd
like
you
to
move
on
to
the
next
page,
all
right
so
here
I'm
basically
we're
basically
depicting
a
transaction
diagram
right
on.
Basically,
what
are
the
entities
that
are
at
play
and
how
this
will
work?
So
I'm
pretty
sure
a
lot
of
a
lot
of
people
will
be
familiar
with
the
teen
and
drop
structure.
So
here
our
issuer
called
cars.
Global
fintech
llc
will
basically
issue.
We
basically
lend
money
to
fintech
secured
by
debentures
rn
credit
agreement
and
those
fintechs
lend
to
millions
of
borrowers
right.
D
D
A
lot
of
things
have
to
go
wrong
with
a
lot
of
people
and
the
fintechs
actually
have
to
have
in
the
operational
issues
before
the
series
llc
is
in
trouble,
and
then
we
have
a
team
and
job
token.
So
we
are
setting
up
a
fund
called
courage
that
funds
that's
going
to
basically
invest
in
the
teen
trance,
which
is
with
junior
trent,
that's
basically
the
first
layer
of
protection
in
in
the
poll.
D
All
right
so
here
I'm
basically
describing
the
the
term
sheet
for
reports.
I
won't
touch
on
all
the
points,
but
high
level.
We
are
expecting
a
100
million
size
of
of
our
pool
cut
across
10
to
20
investments,
we're
launching
next
next
year
and
alex
explain
what
types
of
assets
what
type
of
fintechs
we
are
investing
in,
so
fintech
does
basically
lend
money
on
a
short
term
basis,
usually
70
to
90
days
can
go
higher,
but
on
a
blended
average
we're
going
to
be
within
that
range.
D
We're
gonna
have
skin
in
the
game,
basically
providing
a
large
porsche,
significant
portion
of
the
team,
and
also
one
very
good
particularity
about
this
pool?
Is
that
we're
setting
up
a
series
llc,
which
is
the
bankruptcy
remote
spv?
We
will
be
appointing
an
independent
director
into
that
spv
to
kind
of
look
after
the
operation
of
espv.
So
if
anything
were
to
happen,
then
that
their
independent
director
can
be
a
whistleblower
and
also
can
actually
take
over
things,
so
that's
basically
something
nowhere
else.
D
We
we
are
putting
in
place
and
alex
if
you
move
on
to
the
next
page
right
and
here
what
I
would
given
that
we
are
setting
up
a
pool,
that's
going
to
have
many
assets
in
it,
it's
very
prudent
to
actually
ensure
broad
representation
and
diversity
of
assets
in
report.
So
we
don't.
We
are
we.
We
do
have
concentration
limits
to
basically
make
sure
that
the
representation
and
the
diversity
is
respected.
So
we're
gonna
have
concentration
limits
in
terms
of
asset
originator,
country
exposure.
D
So
we
don't
want
exposure
to
one
single
country
and
also
not
exposure
to
one
given
currency.
Also
performance
triggers
in
place
to
make
sure
that
the
input
is
well
performing.
So
if
any
borrower
is
not
performing
as
expected,
we
are
able
to
basically
kind
of
keep
them
out
of
a
pool
and
ask
for
repayment
at
that
point
in
time.
So
I
will
stop
here
in
terms
of
the
pull
specs
and
if
there's
any
question,
we're
more
than
happy
to
cover
in
the
q
a
session.
A
C
A
B
A
C
D
C
It's
far
away
all
right,
thank
you
so
so
this
is
deep
dive.
This
is
our
on-chain
analytics
platform,
so
deep
dive,
ingests
fintech
data
and
provides
pool
and
portfolio
analysis
and
how
we
do
that
we
store
and
manage
our
data
on
ethereum
to
allow
for
integration
with
tin
lake.
So
we
use
smart
contracts
to
manage
the
access
control,
as
well
as
the
hash,
lookups
and
ipfs
to
actually
handle
the
data
storage
and
what
we're
looking
at
here
is
a
global
fintech
pool.
C
So
deep
dive
has
two
sections:
there's
a
pool,
analysis
and
portfolio
analysis.
First,
we'll
look
at
the
pool
the
pool
analysis
at
the
top.
Obviously
we
have
a
map
that
shows
the
the
representing
countries
of
the
pool
members
and
then
we
have
the
constant
concentration
limits.
As
azer
mentioned,
we
want
to
demonstrate
the
diversity
and
balance
within
our
pools,
so
we
present
the
allocations
by
fintech
country
and
currency.
C
As
you
can
see,
we
have
the
highest
allocation
in
green,
meaning
that
this
the
highest
allocation
in
each
of
these
three
sections
meets
our
concentration
limits
and
our
expectations
where
it's
25,
40
and
40
across
the
board
for
currency.
We
have
an
exception
on
the
euro
and
usd
so
in
this
case,
the
the
inr
being
12
meets
our
concentration
limit
next
up
I'll
scroll
down,
and
we
go
to
the
the
disbursement
history
of
the
pool
so
for
disbursement
history.
A
D
That's
that's
what
we're
talking
about
concentration
limits
at
the
pool
level
right.
We
want
to
make
sure
that
the
pool
is
diversified
enough
so
that
we
have
a
broader
representation.
So
basically
we
we
will
be
tracking
this
over
time
on
the
on
a
real
time
basis,
making
sure
that
we
have
the
consultation
limits
are
met
and
that
everything
is
working,
correct.
C
Thank
you,
yeah,
that's
excellent,
great
point
and
so
we'll
scroll
down
to
the
portfolio
section.
So
here
we
have
collapsible
views
of
all
the
portfolio
members,
the
different
fintechs,
the
sample
fintechs
we
put
together
for
this
demonstration.
Each
of
these
are
collapsible,
so
we
can
expand
on
them.
C
And
get
a
deeper
view
into
the
performance
of
that
portfolio,
member,
let's
scroll
down
so
each
card
has
the
amount
dispersed
the
country
of
origin
where
they're
doing
business,
the
fintech
type
in
this
case
and
the
currency
on
our
first
tab.
We
have
the
portfolio
characteristics
and
a
snapshot,
so
the
snapshot
covers
the
most
vital
metrics
that
we
that
we
measure
on
the
characteristic
side
and
this
snapshot
is
available
on
all
three
tabs.
C
C
So
we
provide
a
pretty
deep
analysis
on
the
portfolio
characteristics,
which
is
how
they're,
basically
using
the
capital
that
they
have
in
their
portfolio.
The
next
step
over
is
portfolio
performance.
So
again
the
snapshot
capturing
the
most
recent
performance
of
that
of
the
portfolio,
and
then
we
go
down
to
delinquency
so
for
portfolio
performance.
What
we
care
about
most
is
the
delinquency
and
write-offs.
C
So
we
capture
that
here
showing
the
performance
over
time
and
where
we
are
today
and
lastly,
on
the
third
tab,
we
have
covenant
compliance.
This
is
this
is
a
very
interesting
piece
and
another
element
of
this
is
for
investors.
We
want
to
add
alerting
on
this,
so
when
a
portfolio
member
is
outside
of
the
covenant
compliance,
we
can,
let
investors
know
and
reach
out
to
them.
Is
there?
Do
you
want
to
cover.
D
Yeah,
absolutely
so
yeah
exactly
what
what
I
will
add
in
here
right
is
that,
as
I
mentioned,
we
do
we
do.
We
are
strong
believer
that
what
makes
a
strong
full
structure
product
is
basically
underlying
assets
and
for
how
we
we
ensure
of
that
is
that
we
have
like
strong
covenants
in
place
at
an
individual
borrower.
D
So
in
this
example,
for
example,
in
mo
in
pretty
much
all
of
our
deals,
we
have
covenants
in
terms
of
cash
interest
coverage,
understanding
how
much
cash
we
have
on
hand
to
basically
be
able
to
cover
interest
payments.
We
are.
We
want
to
make
sure
that
they
are
in
compliance
with
the
advantage
rate
and
the
borrowing
base
requirements.
D
We
have
like
a
tangible
net
worth
covenant
and
a
lot
of
covenants,
depending
on
what
type
of
customer
that
we
basically
have
in
this,
and
as
charles
mentioned,
we
can
look
at
how
how
are
they
complying
against
the
covenant?
If
we're
seeing
one
customer
getting
close
to
the
covenant
right,
we
can
we
get
alerts
just
telling
us.
Okay,
these
guys
are
25
percent
close
to
bridging
the
task
interest
coverage.
Then
we
can
have
a
proactive
discussion
with
them
on
how
we
take
corrective
measure.
D
B
C
B
Nicely
I'll
mention
that
this
is
currently
in
use
for
the
branch
and
blink
pool
that
that
are
open
on
centrifuge
that
I
think
represent
over
10
million
die
of
accumulated
assets,
and
so
because
we
manage
them
for
1754,
slash
level,
capital
and
and
the
the
software
package
here
we'll
look
into
whether
and
how
to
make
it
open
source
would
be
happy
for
it
to
be
used
by
other
issues.
We
think
yeah.
E
We
take
this
approach
because
our
philosophy
is
it's
much
better
to
predict
what
might
go
wrong
and
be
proactive
with
our
borrowers
in
having
discussions
and
restructuring.
In
the
extent
we
have
to
rather
than
wait
for
a
default,
and
then
you
know
try
to
pick
up
pieces
later.
So
this
is,
you
know,
very
helpful.
I
think
a
unique
aspect.
C
A
F
So
obviously,
you're
doing
a
lot
of
lending
in
different
parts
of
the
world
a
lot
of
different
legal
and
regulatory
structures
there.
What's
your
exposure,
how
would
you
deal
with
it
if,
like
one
of
the
fintechs,
were
to
go
under
face
legal
scrutiny?
Or
you
know
some
events
where
they
had
to
you
know
put
their
their
loan
book
to
the
courts.
E
E
What
we
do
in
our
underwriting
itself
is
we
use
local
council
to
understand
kind
of
the
better
creditor
laws
of
each
particular
jurisdiction
and
when
we
implement
our
lean
structure,
we
do
that
with.
You
know,
sensitivity
to
what
you're
able
to
do
as
a
creditor
in
each
one
of
those
particular
jurisdictions,
and
then
we
try
to
trap
cash,
so
cash
dominion
once
we
know
that
something's
going
wrong.
We
will
stop
the
process,
we'll
control
the
cash
and
then
we're
building
out
our
network
of
servicers
in
various
jurisdictions.
F
A
A
D
D
So,
for
example,
in
view
west
africans
francophone
west
africa,
where
we
are
also
kind
of
looking
at
some
customers
there,
the
currency
there
is
actually
the
cs
are
frank:
that's
actually
affect
to
be
to
the
eu.
So
basically
you
might
see
that
you're
landing
in
local
currency
but
in
reality
you're
landing
in
europe
right.
So
basically
the
hedge
there
will
actually
be
a
euro
usd
head
in
case.
F
B
So
so
you
and
you're
talking,
because
there
are
two
steps
in
us
working
with
the
customer
right,
there's
the
first
step
where
we
need
to
get
into
a
relationship
with
the
the
the
issuer
of
the
loan
right
I
mean
the
the
fintech
and
and
then
there
is
once
we're
working
with
them
right
where
we
establish
a
financing
facility
right-
and
I
think
your
question
refers
more
to
the
ladder.
Is
that
correct.
D
D
So,
basically,
the
way
we
are
working
with
the
facilities
that
we
offer
are
kind
of
like
revolving,
it's
kind
of
a
it's
a
warehouse.
So
when
we
we
deal
with
fintech,
we
actually
offer
them
a
loan,
that's
up
to
10
million
right.
So
basically,
I'm
just
an
example
we
just
signed.
We
do
an
underwriting
for
up
to
10
million
dollars
worth
of
disbursement
right
now.
The
fintechs
based
on
their
needs,
come
in
and
borrow
us
in
trenches.
D
So
basically
we
do
the
underwriting
right.
So
we
do
we
do
with
due
diligence
the
underwriting
we
track
the
portfolio
and
as
they
need
funding,
they
basically
come
in
and
draw
funds
and
basically
ramp
up
their
portfolio
for
that
at
that
time.
Now,
if
they
come
in
for
1
million
and
they
want
to
come
back
and
then
get
another
million,
we,
for
example,
we
have
a
borrowing
bid
and
an
adventure
rate
right.
We
need
to
make
sure
that
they
have
enough
receivables
to
basically
comply
with
the
advance
rate
and
that's
how
we
do
the
disbursement.
D
So,
that's
basically
how
we
we
do
it
now
if
we
underwrite
them
for
10
million
and
at
the
end
of
the
10
million
they
said.
Okay
wow,
our
portfolio
were
expected
to
grow
to
10
million.
Within
two
years.
We
wanted
a
20
million
20
million,
based
on
how
things
have
been
going.
We
can
re-up
and
basically
resign
or
extend
the
credit
agreement
to
be
a
bit
able
to
basically
get
to
a
larger
facility
size.
B
Because
I
think
that
in
the
question
there
is
a
valid
point,
that
is
the
the
initial
setup
text
time
right,
like,
as
I
was
saying,
right,
setting
up
that
financing
facility
takes
time,
and
so
so
you're
correct
in
that
sense.
Right,
it's
like
we'll
say
eight
to
12
weeks
is
what
it
looks
like
it
is
now
and
we're
seeking
to
reduce
it
with
standard.
B
You
know
by
standardizing
the
legal
agreements
and
so
forth,
but
if
it's
a
new
country
and
also
the
first
time
we
look
at
the
books
to
understand
it,
there
is
an
incredible
time
there
that
we
will
leave
it
at
that
subsequent
trenches.
That
then
it
goes
fast
within
the
will
in
the
limit,
provided
that
no
covenant
is
breached
right
exactly.
D
E
And
I
would
add,
on
a
macro
level,
the
types
of
companies
we're
lending
to
these
are
emerging
markets,
so
the
demand
for
capital
far
outstrips
the
supply.
So
our
problem
is
not
finding
borrowers,
it's
finding
and
providing
diligence
to
the
right
borrowers.
So
at
the
current
time-
and
I
think
you
know
for
some
time-
demand
is
not
the
issue-
there's
a
lot
of
potential
targets
out
there.
E
Now
that
will
change
as
more
institutional
investors
go
into
emerging
market
lending,
and
one
thing
we
do
in
our
credit
agreements
is
provide
ourselves
with
the
right
of
first
refusal.
So
our
hope
is
to
continue
to
grow
as
we
vet.
Good
borrowers
and
those
borrowers
grow
were
contractually
entrenched
into
their
capital
structure.
F
Sorry
can
I
can.
I
ask
a
question-
and
I
I'm
sorry
if
you
already
answered
this
question,
but
I
just
joined
the
call
a
bit
late.
You
mentioned
that
this
is
similar
to
a
revolving
light
line,
but
is
it
similar
to
a
revolver
or
to
an
invoice
financing
line
in
the
sense
that,
in
the
sense
that
revolvers
are
unsecured,
so
what
type
of
secure
lien
you
have
on
the
underwriting
loan?
This
is
my
first
question.
E
Sure
I
can
take
that
our
facilities
are
structured
similar
to
a
revolver
in
the
sense
that
there
is
a
borrowing
base
mechanism
and
an
advanced
rate
mechanism.
So
you
have
to
meet
that
to
get
the
cash
it's
it's
different
in
the
sense
that
we're
not
managing
kind
of
paybacks
and
and
resetting
every
month.
So
once
the
capital
deployed,
we
look
at
the
borrowing
base.
If,
for
some
reason,
there's
deterioration
in
the
loan
book,
then
they'll
have
to
repay
or
they'll
be
or
they'll
be
in
default.
E
So
that's
that's
the
similarity
to
the
borrower,
but
it's
not
a
it's
not
kind
of
a
constant
repayment
and
reborrowing
that
that
aspect
is
different
than
your
traditional,
a
borrowing
base
to
your
second
question
with
respect
to
defaulted
receivables
and
whether
they
need
to
buy
them
back
the
way
we
structure
it
is
that
if
those
receive
a
certain
portion
of
receivables
become
defaulted,
they
will
be
excluded
from
the
borrowing
base.
An
additional
collateral
will
need
to
be
pledged
either
in
cash,
equity
or
another
asset
in
order
to
again
comply
with
the
borrowing
base.
F
Thanks
but
just
like
the
last
one
to
make
sure
I
understood
correctly,
but
the
revolving
line
is
it
secured
on
the
overall
assets
of
the
company
or
is
it
secured
also
as
an
extra
lien
on
the
on
the
lending
collateral?
That
is,
there
is
pledged
just
to
or
is
or
the
ending
collateral
is
pledged
just
to
size.
The
line.
E
A
D
Sure
I
I
can
take
that,
so
we
monitor
the
the
performance
of
the
loan
using
recurring,
deep
dive
tool
that
we,
just
we
just
on
told
a
demo.
So
basically
we
we
track
the
delinquencies
at
depending
on
the
under
the
fintech,
but
in
general,
at
30,
60
90,
and
anything
that
they
wrote
off
right,
30,
69
the
delinquency
and
also
track
and
go
right
off
right.
So
basically
we
can
see
how
the
portfolio
is
trending
and
now,
if
there
is
any
trend,
that's
basically
unusual.
D
So,
for
example,
in
this
part
of
the
world
here
where
I
am
right
now,
we
typically
see
increase
in
defaults
right
after
christmas
season,
so
january
february,
usually
a
very
bad
bad
bad
time
for
a
lot
of
fintechs.
Why
a
lot
of
people
overspend
during
the
holidays
right?
So
if
you
already
start
seeing
reportedly
that
you
have
a
covenant
that
says
that
you,
your
your
your
60-day
delinquency
should
not
exceed
10.
D
If,
in
october
november,
I've
seen
it
at
6
7
8.
I
know
that
in
january
it's
going
to
be
11,
so
they
will
be
in
breach
of
the
covenant
so
automatically.
We
can
already
start
talking
to
the
borrower
to
make
sure
that
we
can
actually
either
have
additional
equity
or
have
them
put
additional
receipts
receivable
to
make
sure
that
there
is
no
default.
So
that's
basically
how
we
do
it
and
that's
done
through
alerts
to
analytics
that
we
have
embedded
within
the
deep
dive
that
basically
has
to
run.
E
And
I
would
add
to
what
others
are
saying.
Is
we
also
do
a
cohort
analysis?
So
when
we
look
at
receivables
that
are
coming
defaulted,
we
look
to
see
why
that
is
so.
If
a
large
pill
of
receivable
has
been
defaulted,
is
it
receivables
that
were
current
for
a
long
time
and
then
all
of
a
sudden
went
defaulted
or
do
you
have
a
large
pool
that
is
defaulted
because
they
were
just
originated
and
they
never
paid
so
people
who
just
took
the
loan
had
no
intention
of
paying.
E
B
Right,
thank
you
and
something
I
want
to
add.
So
I'm
an
avid
reader
of
the
maker
forum
right
and-
and
I
see
you
know,
discussions
interests
for
analytics
and
so
forth
on
your
pools
right,
which
makes
a
ton
of
sense.
That's
why
we
came
up
with
deep
dive
in
the
first
place
and
we'd
be
very
happy
to
share
that.
B
You
know
the
software
with
you
or
help
grow
it
so
that
you
can
use
that
across
other
pools,
because
we
think
you'll
need
it,
and-
and
so
you
know
it's
software,
it's
a
lot
of
what
we
get
for
for
other
parts
of
what
we
do
is
open
source,
so
we'd
be
happy
to
make
it
open.
So
also
know
that,
besides
the
application
there
is
this
offer
where,
if
there
is
a
way
we
can
collaborate
at
a
software
level
for
reporting
that
goes
beyond
our
own
pool.
We
would
be
very
happy
to
to
help.