Buyback? AutoInvest? Most recent and asked questions from Investors!

Does Asset-Backed Security have Buyback?

A financial instrument called asset-backed securities (ABS in short) contains the Loan Originator obligation to replace/buyback an underlying asset when it is repaid, overdue or it is late. This is an integral part of the ABS and ensures that the ABS is secured with underlying assets at all times.

Why Auto-Invest isn’t working and when it will work?

Auto invest has to go through a transition period to work with asset-backed securities (ABSs). Therefore for a certain time, auto invest will be under a makeover. Existing investment plans will not go anywhere together with Investor’s previous auto investments but they will not work with ABS. Instead, use the possibility to invest in ABS which has fixed terms and involves investing with just 3 clicks in many similar assets + helps to diversify your investment.

Important is to understand that one financial instrument ABS has at least 5 loans under it and the count can go up as high as 100 (Number of underlying assets are shown for each ABS). These assets have similar characteristics such as type, risk score, interest rate, therefore, it works similar to the plan you have chosen to create previously in auto invest.

Why there are so few assets on the platform?

Well, previously the assets on the platform were individual loans, how many loans on the platform to invest in, that many assets. Usually, it was between 50 – 150. Nothing has changed, the loans are still 50 – 150 on the platform to invest in. The difference is that the loans now are pooled together in financial instruments Asset-Backed Securities. Asset-Backed Securities make investment more secure with a help of regulations, protection systems and automatic diversification. As the ABS consists of 5 or more loans, then the answer is that all loans are under ABSs. We are launching more ABS and they will be more in the list but get use to that they will be around 10 at the first.