Superior utility unlocks unprecedented capital efficiency.
Think of RISCMTP-Notes as a cash investment with a double life. RISCMTP-Notes can be used where cash or T-Bills are accepted but without the management headache of unpredictable returns or investing in and maintaining infrastructure. The Notes’ versatility and nimbleness are due to their high quality and liquidity features, which make them eligible as collateral across a wide range of institutional and regulatory collateral applications.
Looking for cash and short-term investment options that deliver quality, performance and liquidity? Worried about prime money market funds, gating restrictions on liquidity and associated fees? Unable to make your government fund investments match your collateral needs? Are you under-resourced to find acceptable alternatives? RISCMTP-Notes are the answer: High-quality, liquid, managed short-term investments that offer flexibility and collateral utility for your derivatives, repo and borrowing activities.
Banks, insurance/reinsurance companies, asset managers and pension fund managers must always strive to adapt to new and emerging regulations. Tools and strategies that worked yesterday may not work today or going forward. Think of RISCMTP-Notes as like a Swiss army knife for your short-term investment needs: a high-quality, liquid, short-term asset that can be used as collateral for collateral upgrade swaps, derivatives transactions, repos and other secured borrowing activities and collateralized reinsurance. The Notes tick many regulatory boxes and are accepted as Admitted Assets (i.e., capital-/solvency-eligible), Primary Security, Qualifying Collateral and Tier 1 assets, and RBC-neutral / zero-risk-weighted assets.
RISCMTP-Notes are an attractive asset when you need to put your idle cash into a short-term investments that are high credit quality and liquid with a managed return (e.g., government money market funds), but without gating restrictions or associated fees. The Notes are a versatile tool in today’s ever-changing market — a high-quality, liquid, short-term asset that can be used as collateral for collateral upgrade swaps, derivatives transactions, repos and other secured borrowing activities and collateralized reinsurance.
CCPs and other financial market infrastructure players have enormously demanding collateral requirements that start and end with cash. Collateral desired by users must be able to convert to cash on a same-day basis, or CCPs et al. must find places to invest cash collateral that can be converted to cash on a same-day basis, while providing users with a professionally managed and competitive return on their collateral. RISCMTP-Notes satisfy both of these key requirements in a robust manner, while minimising counterparty credit concerns.
