Investment Strategy: Round 4 – YieldStreet Continuation
Building on the success of Round 3, I continued the YieldStreet litigation finance strategy by initiating new balance transfers to refinance the debt from the previous round. This approach maintained exposure to the high-performing Law Firm Financing VII portfolio while optimizing the capital structure through fresh promotional offers.
The strategy aimed to extend the arbitrage opportunity while maintaining the proven 11.69% investment return, targeting an 8.20% net profit after accounting for the 3.49% average borrowing cost.
Balance Transfer Portfolio: $200,200 Total
I executed a strategic balance transfer campaign across 10 different credit cards, focusing on optimal timing and competitive promotional terms to maximize capital efficiency.
| Date | Card | Terms | Amount | Balance |
|---|---|---|---|---|
| 10/31/2018 | Citi Double Cash | 10m/0%/5% | $26,800 | $28,140 |
| 10/31/2018 | Citi Diamond Preferred | 10m/0%/5% | $27,200 | $28,016 |
| 10/31/2018 | Citi Dividend | 10m/0%/3% | $24,400 | $25,620 |
| 10/31/2018 | Barclaycard NFL Extra Points | 14m/0%/3% | $19,000 | $19,570 |
| 10/31/2018 | Chase Freedom | 12m/0%/3% | $9,000 | $9,270 |
| 11/05/2018 | Discover it | 12m/0%/3% | $13,000 | $13,390 |
| 11/06/2018 | Bank of America Cash Rewards | 12m/0%/3% | $19,800 | $20,394 |
| 11/13/2018 | Alliant Credit Union Visa Platinum | 12m/0%/2% | $24,000 | $24,480 |
| 11/16/2018 | U.S. Bank Cash 365 American Express | 12m/0%/3% | $10,000 | $10,300 |
| 11/27/2018 | Discover it | 9m/0%/3% | $27,000 | $27,810 |
| Portfolio Summary | 11 months, 0% APR, 3.49% average fee | $200,200 | $206,990 | |
Key Metrics: Total capital deployed: $200,200 across 10 credit cards. Total borrowing cost: $6,790 (3.49% average fee) for an 11-month interest-free period. This round focused on refinancing previous debt while maintaining investment exposure.
Investment Performance: 8.20% Net ROI
The continuation strategy delivered solid returns while demonstrating the sustainability of the arbitrage approach through multiple refinancing cycles.
| Component | Net Profit/Loss | Return Rate |
|---|---|---|
| Law Firm Financing VII (YieldStreet) | $23,398 | 11.69% |
| Balance Transfer Fees | ($6,790) | (3.49%) |
| Net Return on Investment | $16,608 | 8.20% |
Performance Summary: The YieldStreet Law Firm Financing VII portfolio continued to generate strong returns at 11.69% over the 11-month period. After accounting for the $6,790 in balance transfer fees, the strategy achieved a net return of 8.20%, representing $16,608 in profit. This round demonstrated the viability of extending arbitrage strategies through strategic refinancing while maintaining consistent investment performance.