Hi team,
A few weeks ago I sent Arpan a direct message about sUSN’s current collateral allocation — specifically the ~72% weighting in Private Credit (Fasanara FTAC) — with a few questions:
1. Is there a formal target allocation cap per strategy (on-chain enforced or publicly committed), or is the current weighting purely discretionary?
2. Is Fasanara FTAC a single counterparty/vehicle, or a diversified pool of underlying borrowers?
3. In a stress scenario (rising defaults, redemption spikes), what actually happens to sUSN redemptions given Private Credit’s lower liquidity?
4. Are periodic performance reports planned for Fasanara FTAC specifically (default rates, diversification, tenor)?
5. Who on the team owns credit risk/underwriting decisions for the Private Credit bucket, and what’s their background in credit underwriting specifically?
I haven’t heard back, so I wanted to raise it here as well — not as a complaint, just because I think these are relevant questions for the broader holder base, especially with the recent Basis Trading and Base/Royco tranching proposals adding further strategies on top of the existing collateral mix.
Would appreciate any response, even a brief one, on where things stand.