Opportunities in the Global Digital Lending Landscape
Digital Mosaic invests in a diverse portfolio of marketplace loans and digital specialty assets, partnering with top-tier technology platforms from across the globe.
Our objective is to provide our clients with unparalleled access to the world’s best marketplace loans, allowing them to maximize profits from the rapid tech-enabled origination and disintermediation in bank lending. Our funds aim to deliver returns that exceed other fixed income investments of comparable risk.
We utilize a combination of fundamental analysis, big data, and machine learning to identify the most attractive assets within our network of lending partners, which we are always looking to expand. Our proprietary systems are optimized to support our custom, AI-based trading algorithms and to ensure seamless integration with all of our partner platforms.
Our commitment to diversification sets us apart from our competition. We build our portfolios with assets drawn from a broad geographic base, reducing our exposure to any single economy or risk factor. Likewise, we invest in a strategic blend of asset types, ensuring portfolio correlation remains low while yields remain high.
DIGITAL LENDING LANDSCAPE
Marketplace lending describes the rapidly growing practice of non-bank, financial technology firms using innovative digital platforms to provide loans to borrowers of all types. Since the Great Crisis in 2008, banks have substantially reduced the volume of credit they extend to a wide range of borrowers, particularly retail customers and small businesses.
This change in policy has triggered a massive wave of disintermediation, as new players with more efficient lending practices are beginning to dominate segments of the markets once served exclusively by banks.
This has effectively created a new fixed income asset class for investors, who are now able to directly purchase loans that were previously unavailable. And because these assets are issued via highly efficient technology platforms to borrowers who historically pay higher spread than large corporates, they deliver higher risk-adjusted yields than any other fixed income asset class.