The Osprey Total Return Pool is the “first” actively managed investment grade credit portfolio available on-chain.
The strategy of the pool is powerful: deliver “a total return from a short-duration Investment Grade credit portfolio of ‘real-world-assets’ including; Treasury Bills, Asset-Backed Securities, and Loans.”
The pool targets “a competitive interest rate of the 90-day Term SOFR rate + 1.5%, 6.89% at the time of writing.”
The pool also shares 50% of “the portfolio’s Net Income enabling the potential for greater interest over time.” The opportunity is offered “through the collaboration of Cicada Partners, a pioneering on-chain credit risk management company, and Monetalis, an appointed Arranger for MakerDAO.”
In recent months, on-chain allocators “have tapped into attractive “risk-free” rates, with nearly $700 million allocated to treasury products (rwa.xyz).” With the Osprey Pool, lenders have the opportunity to earn interest rates of 150 bps “above the risk-free rate, with active portfolio management at the core of its low-risk strategy.”
Active portfolio management is “a differentiating strategy versus existing on-chain offerings, which focus on passive index tracking or staking.” In contrast, the Osprey Pool takes advantage of short-term market trends and sector-specific opportunities “to return value back to the Pool.”
Monetalis has established Osprey Services Limited to “be the sole borrower from the Pool.”
The team boasts 40 years of traditional portfolio-building expertise, and “has a reputation for being an Arranger for MakerDAO, and managing a $1.7 billion portfolio on behalf of its Community.”
Led by Chief Credit Officer Alessio Marinelli and Head of Portfolio Management Andrew Kemp, the team at Monetalis is equipped “with deep industry experience across Fixed Income asset classes.” Their network of primary dealer desks “facilitate efficient execution and the best possible returns for the portfolio.”
Alessio Marinelli, Chief Credit Officer, Monetalis, said:
“We at Monetalis are very excited by the opportunity to expand the reach of our team’s services and manage a pool on-chain. We have developed the portfolio to align with the goals of on-chain capital allocators and bring this unique opportunity to access yield from high quality real-world-assets exclusively to Maple.”
Cicada Partners steps into the role of Pool Delegate for the Osprey Total Return Pool.
This seasoned team of former buy- and sell-side credit professionals “has been at the forefront of DeFi credit space.”
In their role as Pool Delegate, the team will “ensure portfolio execution is in line with the defined investment strategy and risk framework, and will provide regular performance updates to Lenders.”