Collateral Adapter™
Enables an illiquid asset holder to obtain the standby letter of credit required for an Enhancement CPC™ investment (“Letter of Credit”) in reliance upon the high-quality liquid assets (“HQLA”) owned by a second party.
Scenario: A holder of suitable High Quality Illiquid Assets (“HQIA Owner”) seeks to invest in an Enhancement CPC™ series, requiring the issuance of a Letter of Credit.
High-Quality Illiquid Assets (“HQIA”) are offered as collateral to an HQLA Sponsor selected by CSS such that HQLA Sponsor will use its High-Quality Liquid Assets (“HQLA”) to secure a Letter of Credit on behalf of HQIA Owner
HQLA are value-protected at all times up to a maximum of 4 times their value.
Balance Sheet Friendly – HQIA pledge and Letter of Credit may qualify as contingent liabilities and “footnoted”.
In event of default, HQLA Sponsor recovers against the HQIA upon an unreimbursed draw of the Letter of Credit.
Generally, limited disruption of unlevered fund or portfolio strategies.
At term, when there has been no default, Letter of Credit is cancelled and all pledges and collateral assignments are released.
HQLA Sponsor has asset substitution optionality at all times.
HQIA is periodically independently valued by approved firms.
Typically, 1-, 3-, or 5-year term.
Other Products.
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.