How should the credit rating impact the return on my investment?

The higher the risk, the higher the required return should be.

Daskapital advises investors to set a minimum required return based on the risk rating, to which they should add a rate of return that they would benefit from if they decided to invest without risk.

To assist investors, Daskapital proposes a Minimum Indicative Rate (Tmin), calculated as:

1. The risk-free_rate represents the interest rate on a risk-free investment and for this purpose the yield on German treasury bonds due in 2 years recorded on the last business day of the previous quarter is used. To this end, the yields of these treasury notes are consulted on the Deutsche Bundesbank website.

2. The risk rate represents an estimate of losses on the crowdfunding project. For this calculation, the probability of default is assumed per score calculated by Iberinform and assuming losses of 100% in case of default. Current estimates of the probability of default by rating score are represented in the following table:

Example:

• For a credit rating of 5 in January 2025 → risk-free rate = 2.09% + risk rate = 2.5% = Tmin = 4.59%

If you need further clarification, please get in touch with us at support@daskapital.eu.