What are RISCMTP-Notes?

RISCMTP-Notes are a new unique debt security combining the liquidity of cash with the quality and managed returns of government money market funds. What’s more, RISCMTP-Notes are designed to serve as versatile collateral instruments that are designed to be more liquid, capital-efficient and secure than short-term credit securities (e.g., commercial paper and CDs), prime money market funds and ETFs. In short, your money works harder with RISCMTP-Notes.

RISCMTP-Notes are securities representing a proportional interest in a pooled investment fund consisting predominantly of U.S. Treasuries and <60-day credit assets that provide an attractive alternative to investing in government money market funds and bank deposits.

RISCMTP-Notes are investment securities issued with either a 1-year or a 10-year maturity that are:

    • exchange-listed and transferable with market I.D. numbers (i.e., CUSIP: G75730AA2, ISIN: USG75730AA25)
    • predominantly backed by a portfolio of U.S. Treasuries
    • issued for a 1-year or a 10-year term
    • expected to be rated [Aaa(sf) by Moody’s]
    • tri-party and repo eligible
    • redeemable at the Noteholder’s option at any time for same-day settlement1,either on an “In-Kind” or “Liquidated Asset Value” (LAV) basis
    • redeemable at par plus the Unamortised Utility Premium (UUP), i.e., Book Value, on the Annual Optional Redemption Date or the Final Maturity Date of each RISCMTP-Note (again, for same-day settlement)
    • valued daily and viewable on Bloomberg

1Subject to cut-off times.

What are the advantages of RISCMTP-Notes?

Compared to money market funds
RISCMTP-Notes employ many government-money-market-mutual-fund management techniques to replicate money market returns inside a listed, rated fixed-income security that enables the Noteholder to exit at any time for current “Liquidated Asset Value” (LAV), without gating or penalties or at Book Value at each Annual Optional Redemption Date.

Compared to Treasury Bills
RISCMTP-Notes are the closest thing to owning Treasury Bills without having to choose or manage them yourself.

Compared to cash
RISCMTP-Notes are like cash with an imbedded managed return. Cash begs the questions: What can I buy? What will I earn? Am I capital-efficient? RISCMTP-Notes are the answer.

Compared to ETFs
RISCMTP-Notes are redeemable at any time under the Noteholder Optional Redemption right for the Noteholder’s share of the underlying securities (i.e., an In-Kind redemption) or their LAV (i.e., a cash redemption). They are also  redeemable annually at Book Value on the Annual Optional Redemption Date. They are like zero risk-weighted ETFs without all the market risk.

No additives, derivatives or synthetics, just a simple, straightforward participation in the underlying note portfolio securities.



  • Are provisionally rated (P)Aaa(sf) by Moody’s (see press release).
  • Redeemable at any time, for same-day settlement, on an In-Kind or LAV basis.
  • Expected to compete with O/N Fed Funds Effective Rate, 3- to 6- month U.S.Treasuries and government money market funds.
  • Freely transferable in accordance with applicable securities laws.
  • Versatile collateral instrument designed to be acceptable for:
    • derivatives collateral (initial margin under Dodd-Frank and EMIR rules)
    • repos and securities lending transactions
    • central bank and bilateral secured borrowing transactions
    • collateralised reinsurance transactions
    • regulatory surplus/solvency relief transactions (in the U.S., U.K., Canada and Europe)
  • Portable: more acceptable as collateral than a mutual fund share or similar fund investment .
  • Attractive managed returns with a daily value on Bloomberg
  • The Notes’ superior utility should allow them to trade at a premium to their Book Value, resulting in pay-as-you-go utility.
  • Having the Utility Premium (UP) imbedded in the Notes enhances their collateral value (by the amount of the unamortised UP), reducing the need to over-collateralise security requirements and adding yet another utility feature.

Note: These represent RISCfp opinions. For actual application, you will need to consult with the receiving party for confirmation of acceptability.

RISCMTP-Notes are backed by portfolios that are managed by some of the world’s best professional managers of short-term investments.

  • All RISCMTP-Notes will have their issuance proceeds:
    • invested in a portfolio (the RISCMTP-Note Portfolio) that resides in a stand-alone Designated Activity Company (the Issuance DAC)
    • managed by a professional investment manager (the Investment Manager) according to a set of RISCMTP-Note rules (the [Investment Guidelines])
    • managed according to other manager-specified investment criteria as set out in an Investment Management Agreement (the IMA) for each RISCMTP-Note (the IMA Criteria).
  • The RISCMTP-Note Portfolio will be managed without leverage to achieve the following objectives:
    • capital preservation
    • liquidity
    • low Note valuation volatility
    • attractive performance characteristics (e.g., relative to Performance Benchmarks, see below)
  • These are achieved by maintaining a weighted-average maturity on the RISCMTP-Note Portfolio of 9 months or less, and by having each security in the portfolio mature and settle by the Annual Optional Redemption Date or by the Final Maturity Date, whichever is earlier.
  • The Investment Manager will deploy the RISCMTP-Note issuance proceeds to acquire the securities (the Collateral Obligations) that back each RISCMTP-Note (i.e., the RISCMTP-Note Portfolio) according to the Investment Guidelines summarised below and further specified in the IMA.
    • Primary Collateral: Obligations of the U.S. Department of Treasury and Servicing Assets as previously referenced (see IMA).
    • Servicing Assets:[Bank deposits, U.S. Government agency securities and credit securities that are rated P1, that are issued by issuers who are rated Aaa or for which 100% of their outstanding debt is rated Aaa.]
    • Collateral Obligation Maturities & Note Portfolio Duration: The duration of the RISCMTP-Note Portfolio may not exceed 9 months. All Collateral Obligations must mature on or before the sooner of the next RISCMTP-Note Annual Optional Redemption Date or the Final Maturity Date. Servicing Assets must have a maximum maturity of 60 days when acquired.
    • Performance Benchmarks: O/N Fed Funds Effective Rate, 3 to 6-month U.S. Treasuries and government money market funds.

Redemption by RISCMTP-Note Holder:

  • RISCMTP-Notes may be redeemed by the Noteholder at any time, on either an In-Kind or LAV basis.
  • Redemption settlements, whether in cash or portfolio securities, will be for same-day value, subject to the redemption notice being received by 8 a.m. New York time on any business day.
  • All RISCMTP-Notes may be redeemed 100% by the issuer or by each individual Noteholder for their Book Value on the Annual Optional Redemption Date.
  • The Notes may also be increased through additional investment on each Annual Optional Redemption Date subject [to the Issuer receiving and accepting a notice of such increase [30]-days prior to the respective Annual Optional Redemption Date].

Redemption by RISCMTP-Note Issuer:

  • In addition to having the right to redeem the Notes on eachAnnual Optional Redemption Date, the RISCMTP-Note issuer (i.e., the Issuer) will have the right to execute one or more early redemptions at Book Value (in whole or in part, the Issuer Call Option Redemptions) if:
    • the Investment Manager is unable or unwilling to perform its duties under the IMA. , or
    • the Trustee and/or other key agents are unable or unwilling to perform their support functions as agreed; , or
    • the Investment Manager is unable to invest in Collateral Obligations that meet the Investment Guidelines and/or the IMA Criteria (e.g., investments with a positive yield).
  • All Issuer Call Option Redemptions will be subject to Notice being given by the Sponsor on behalf of the Issuer and will be settled in cash on the date that payments are received on RISCMTP-Note Portfolio securities as they mature. Settlement amounts received from the maturing RISCMTP-Note Portfolio securities will be paid to all RISCMTP-Note holders on a proportional basis.

  • RISCMTP-Notes have a Principal Amount of 100% and are sold with a “Utility Premium” (UP) of up to 1.0% to reflect their value as managed, collateral-eligible investments. All, or a portion, of the UP will be amortised at issuance of the Notes, and the balance (if any) will be earned and amortised on a straight-line basis on each anniversary date until the 10th year. The Book Value of the Notes will include the Unamortised Utility Premium (UUP) on the annual Put/Call date ( i.e., the Annual Optional Redemption Date.
  • The UP is a prepayment by the investor of 10 years’ worth of fees payable to the Sponsor to compensate itself and all third-party agents and service providers required to operate and administer the Issuer and the Notes, except for the Investment Manager.
  • The UUP will be combined with the Principal to make up the Book Value of the Notes from time to time, which will be the exercise price for the annual Noteholder and Issuer redemption options.
  • The Noteholder may recover all or part of the unused portion of the amortised UP in each year by selling the Notes in the market (e.g., via a market maker). The Noteholder will otherwise be able to recoup the UUP:
    • at market, by selling the Notes in the market at a price greater than Book Value,
    • at or around Book Value (i.e., LAV), by giving a Noteholder Early Redemption Notice;
    • at Book Value, by giving a Noteholder Annual Redemption Option Notice
  • Having the UP imbedded in the Notes increases their collateral value (by the amount of the UUP), reducing the need to over-collateralise security requirements and adding yet another utility feature.

  • According to the “look-through approach” or LTA under BIS CRE60, banks holding investments in RISCMTP–Notes in the banking book should “risk weight the underlying exposures of a fund as if the exposures were held directly by the bank.” As the US government securities carry a zero-risk weight, so should the government bond component of the investments in RISCMTP–Notes.
  • RISCMTP-Notes are designed to satisfy the requirements set out in regulation 17 CFR 23.156(a)(1)(ix) enacted by the Commodities Futures Trading Commission for Eligible Collateral for derivatives.
  • The US Patent and Trademark Office (USPTO) has issued a notice of allowance recognizing RISCMTP-Notes as a trademark belonging to the RISConsulting Group LLC, which it has licensed to RISCfp .
  • A patent application covering the business process for structuring and issuing RISCMTP-Notes is currently pending with the USPTO.

RISCMTP-Notes Product Summary

If you would like to be notified when the full set of detailed documentation for RISCMTP-Notes becomes available, please register your interest and we will email you in due course.



If you would like to be notified when the full set of detailed documentation for RISCMTP-Notes becomes available, please register your interest and we will email you in due course.



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