Issue No. 31

At Pier, one of the things we do regularly is purchase portfolios of loans from stressed sellers. Buying portfolios in the secondary market shortens duration, as these portfolios are typically well seasoned and come with meaningful performance history. That seasoning allows us to underwrite with actuals rather than relying solely on projections. Purchasing from stressed sellers also means we are often able to buy at a discount to par, which can materially change the return profile: sometimes turning single digit yielding assets into double digit returns.
Sellers are motivated to move assets off their balance sheets before year end, and that urgency accelerates deal timelines. As a result, this side of the business tends to get very busy for us in the fourth quarter. We closed two portfolios in December and we were working toward purchasing another that missed the cutoff and should close on Friday.

From time to time, we also sell loan portfolios we hold. On December 31st, we sold a loan portfolio at 2:28pm Pacific / 5:28pm Eastern. Moving assets off the books before the calendar year turns helps sellers like us avoid rolling into a new audit period, maintaining an investment vehicle for another year, or incurring incremental vehicle- or fund-level expenses.

December unfolded the way it usually does around here.

— Jillian

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To me, humor makes work enjoyable. In particular, deeply dry dad jokes. I could watch Nate Bargatze and The Office on repeat forever. So, every Friday, I give our team a new one as they head out the door for the weekend.

It's the time of the year for some form of annual list or countdown. Since everyone does books (I do love books, but still...), here are my top 7 dad jokes of 2025.
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‍#7: What's the Easter Bunny's favorite type of music?
Hip Hop.
What about Santa?
Wrap.

‍#6: What’s every lender’s favorite part of school?
When the principal shows up.

#5: A boy asked his bitcoin-investing dad for 1 bitcoin for his birthday.
Dad: “What? $92,554? $114,354 is a lot of money! What do you need $86,782 for anyway?”

‍#4: The swordfish has few predators in the wild.
Except for the rare penfish, which is said to be mightier.

‍#3: What is the difference between a drummer and a savings bond?
One will mature and make money.

‍#2: Why is 6 afraid of 7?
My kids: "6-7!"

‍#1: An AI algorithm walks into a bar.
Bartender: "What will you have?"
AI: "What's everyone else having?"

- Conor