A comparison of Stronghold instruments with other private & public market issues ...
| Hard Bullet | Soft Bullet | ||||
| Covered | Covered | ||||
| Attributes | Stronghold | Sovereigns | Bonds | Bonds | Corporates |
| Principal repayment | Guaranteed | Guaranteed | Dual cover | Dual cover | Promised |
| Credit quality | Economically Defeased | Varies | Investment grade | Investment grade | Varies |
| Enhanced yield | Expected | N/A | N/A | N/A | N/A |
| Coupon payments | Guaranteed | Guaranteed | Promised | Promised | Promised |
| Prepayment | Yes | No | No | No | No |
| Rate type | Floating | Fixed (typical) | Fixed | Fixed | Fixed (typical) |
| Floating rate basis | 1 yr US T-Bills | Libor/UST | N/A | N/A | Libor |
| Tier 1 Capital | Yes | Yes | No | No | No |
| Hold-to-Maturity | Yes | Yes | No | No | No |
| Accounting treatment | Stable value | Stable value | Mark-to-mrkt | Mark-to-mrkt | Mark-to-mrkt |
| Concentration risk | No | No | Yes | Yes | Yes |
| Ring fenced security | Yes | N/A | Yes | Yes | No |
| Bankruptcy exposure | Bankruptcy | N/A | Bankruptcy | Bankruptcy | Full |
| proof | remote | remote | |||
| to legal certainty | |||||
| Derivative | No | No | Yes | Yes | No |
| Liquidity | |||||
| Dealer market | Yes | Yes | Yes | Yes | Yes |
| Secondary market | Private | Public | Private | Private | Private/public |
| Hypothecation | Yes | Yes | Varies | Varies | Yes |
| Collateral value | PAR | PAR | Mark-to-mrkt | Mark-to-mrkt | Mark-to-mrkt |
| Commutation | Yes | No | No | No | No |