Mostly fixed income securities and fixed income-like assets (like real estate, asset-backed loans, etc.). $10,000 invested at 4% brings in a little more than $1/day.
Yes, the market value of the securities and assets may fluctuate day-to-day, but the income doesn't. As long as the borrower is of sufficiently high quality, then there really isn't any concern about the principal getting paid back.
Yes, the market value of the securities and assets may fluctuate day-to-day, but the income doesn't. As long as the borrower is of sufficiently high quality, then there really isn't any concern about the principal getting paid back.