Stronghold

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Instrument Comparisons

 

 

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 Legally 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

 

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