Fundscraper Trust lends money indirectly to many borrowers of different sizes and risk profiles. Fundscraper Trust then groups or “pools” mortgages that are similar.
We have a very conservative pool of mortgages where the investment return reflects the low risk nature of the pool.
We have an “adventuresome” pool that is a group of mortgages that would be considered riskier than a conservative pool – it provides an investor a higher rate of return that reflects that additional risk.
Then we have a pool that is a mix of the two – that pool has a little bit of each.