> For the complete documentation index, see [llms.txt](https://docs.mudigital.net/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mudigital.net/mechanics/how-we-generate-yield.md).

# 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](/mechanics/risk-management-framework.md) with GHAM that is aligned with industry best practices to safeguard user funds while achieving healthy yields