How we Generate Yield

Mu Digital aims to deliver sustainable, predictable yield by allocating the portfolio into a diversified mix of USD-denominated, principal-protected real-world assets (RWAs) from the Asia Pacific region.

To achieve this, we have partnered with a Singapore regulated fund manager, Golden Hill Asset Management (“GHAM”), to manage the underlying portfolio. The team at GHAM is comprised of seasoned investment professionals that have previously managed multi-billion dollar portfolios at funds and global bulge bracket investment banks. This expertise helps Mu Digital strike the right balance of risk and yield to support our flagship products

Asset Classes

The fixed income instruments that back the underlying Asset Pool will primarily comprise a mix of:

• Government Bonds: sovereign debt from creditworthy jurisdictions with a minimum rating of BBB

• Corporate Bonds: investment grade debt issued by established Asian companies with minimum ratings of BBB-

• Bank Bonds: debt issued by regulated financial institutions from Asia Pacific, including Globally Systemically Important Banks (G-SIBs). We will take positions across both senior and subordinated debt, subject to an average minimum issuer rating of BBB

• High Yield Bonds: speculative grade debt issued by large industrial corporations in Asia-Pacific with a minimum rating of BB

• Private Credit: direct lending and credit facilities to vetted borrowers, typically co-lending with other large financial institutions to manage counterparty risk

Risk Management Framework

Mu Digital takes Risk Management very seriously and we have drafted a comprehensive Risk Framework with GHAM that is aligned with industry best practices to safeguard user funds while achieving healthy yields