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Financial solutions provider RISCfp has introduced managed treasury pool (MTP) notes to enable insurers to diversify or reduce their short-term investment risk as they pledge collateral.
The RISCMTP-Notes, which are also available to institutional investors and corporate treasurers, are Moody’s-rated, listed, debt securities. They combine the liquidity of bank deposits with the managed returns of government money market funds (GMMFs).
The RISCMTP-Notes have been designed to address the challenges of the existing alternatives, such as credit concerns, liquidity constraints and collateral eligibility.
The RISCMTP-Notes represent a proportional interest in the assets backing the notes. For example, US treasury bills and notes, and temporary assets such as GMMFs. They are also annually redeemable at par (face value).
They may be redeemed at any other time for same-day value by transferring the investor’s share of each asset in the portfolio to a redemption account where, at the investor’s option, they may either be delivered to the investor or sold at market prices.
BNY Mellon, Merganser Capital Management and Waystone are supporting RISCfp to deliver the RISCMTP-Notes to financial markets. BNY Mellon acts as the custodian and Merganser as investment manager. Waystone provides operational support.
Derrell Hendrix, CEO of RISCfp, says: “RISCMTP-Notes are designed to serve as versatile investment and collateral instruments that are more liquid, capital-efficient and secure than short-term credit securities and bank deposits, prime money market funds and exchange-traded funds. In short, investors’ money works harder and more reliably with RISCMTP-Notes.”
RISC Financing Platform Services is a financing solutions advisory and platform management company that was established to help institutions to meet their demands for financing, current and contingent liquidity, collateral and capital.
It uses standardised secured lending structures, including repo, securities lending agreements and secured loans, that are eligible for protection under bankruptcy procedures in major OECD countries.
RISCfp’s board of directors includes CEO Derrell Hendrix, CFO Richard Black, former Citibank executive Thomas Huertas as chair, and John I Williams jr as additional director,
Its management board also includes Roy Zimmerhansl, securities finance industry veteran and practice lead at Pierpoint Financial Consulting, along with tax counsel Jeffrey Tretin, Karson chief risk officer Jose-Maria Saez-Benito and Karson Management Ltd executive partner Martin Kauer.
