Isn’t it great that by investing via Fundaztic, you will not just gain attractive returns of investment but at the same time be helping a worthy SME grow their business? Indirectly, by investing, you will be playing a role in spurring economic growth as SMEs form the backbone of our economy
How to Invest?
Probability of Default or PD in short is lifted from the Credit Bureau Malaysia (CBM) report which Fundaztic.com uses as part of its credit evaluation process. The PD is calculated using statistically valid models developed specifically for the Malaysian SME environment. The definition of “Default” is based on guidelines from Basel II and defined as EITHER past due more than 90 days on any financial credit facility OR considered unlikely to pay an existing credit facility in full. There are various event triggers that are used to determine how unlikely the credit will be paid in full.
As a summary, the PD may be used to gauge the likelihood of the particular credit (or note in the case of Fundaztic.com) of the SME turning default within the next 12 months based on information received from a range of business information databases. Therefore, a PD of 12% means the particular note has a 12% likelihood of defaulting within the next 12 months. In other words, this means, the lower the PD, the lower the risk and the better the grade.