Why we like OurMoneyMarket

Posted on
13th May 2020
By Lincoln Stollery

Why we like OurMoneyMarket

(OMM) (By Lincoln Stollery, 13th May 2020)

Why we like OurMoneyMarket

In the current climate, iPartners portfolio is becoming increasingly weighted towards Asset Backed Securities (“ABS”), as investors continue to seek attractive risk/ return dynamics, and portfolio diversification with more atypical assets.

OurMoneyMarket (OMM) is an innovative, tech driven consumer lender, offering secured and unsecured personal loans in amounts ranging from $2,001 to $50,000. 

One of the key pillars of OMM is its focus on community-based alignment through providing funding to consumers for clean energy technology and the advancement of professional women through education.

We believe OMM is an attractive investment opportunity due to the fact that:

  • Early stage venture debt products have consistently provided attractive returns, which have been enhanced by restrained borrower negotiation ability within the P2P model
  • Investors are able to access both Senior and Junior trades that are tailored to their risk appetite :
    • Senior debt secures investors against any downturn in the underlying portfolio
    • Junior debt provides high yield return, whilst securing investors against the lender’s collateral (OMM takes the first 7% loss in equity )
  • OMM’s is a high-quality operator with thorough credit procedures, and prioritises return on capital
  • OMM’s assets continue to perform strongly during this period of economic stress
    • There have been minimal arrears since and the majority customers who were declined for hardship continue to service their loans as normal.
  • New lending focus has tightened on the impact that has spread by COVID-19, with secured loans now making up >80% of the portfolio, with a focus on lower personal debt to income ratios and stable employment (i.e. full-time/part-time).
  • OMM has avoided lending to high risk professions and constantly monitors their portfolio to ensure lending remains tight to their parameters. 

For more information on our partnership with OMM, visit the recently launched OMM Senior Secured Loan Series investment below. This series was recently close, however, further opportunities to invest may be available in the future. 

For any questions, please contact your iPartners representative or email us on the below