Deferred Payment Obligations
Deferred Payment Obligations
Nature of Asset: A Passive Credit Support Agreement entered by an investment-grade company or government entity as an “Enhancement Sponsor”. Under this agreement, the Enhancement Sponsor promises to buy-out Credit Support Systems’ position one year after Credit Support Systems’ letter of credit is drawn and is not reimbursed after 90 days. This results in an unremedied financial default by the project or business that was selected by the client.
Credit profile reflects the general credit of the Enhancement Sponsor
Suitable solely for high credit quality or investment grade institutions as sponsor
Minimum required buy-out price is 120% of the face value of the letter of credit
Project term of 3-7 years with a minimum 12-month cash reserve required
Return to Eligible Illiquid Assets
Unlock Credit Power for Growth
Use high-quality assets as secure collateral to unlock better financial flexibility. Our programs support capital growth, risk mitigation, and improved portfolio performance for institutions and accredited investors.
Unlock Credit Power for Growth
Use high-quality assets as secure collateral to unlock better financial flexibility. Our programs support capital growth, risk mitigation, and improved portfolio performance for institutions and accredited investors.
Unlock Credit Power for Growth
Use high-quality assets as secure collateral to unlock better financial flexibility. Our programs support capital growth, risk mitigation, and improved portfolio performance for institutions and accredited investors.