FOR PROFESSIONAL INVESTORS ONLY

 

 

 

RISC MANAGED TREASURY POOL NOTES

Combining the best of cash, Money Market Funds and Treasury Bills

 

 

Merganser-1: USD 3,000,000,000

[May 30] 2023

 

 

RISCfpsm

www.riscmtpnotes.com

For important risk and disclaimer information, Click here.

 

RISCMTP-Notes

Merganser-1: USD 3,000,000,000 – [May 30] 2023

 

 

RISCMTP-Notes

  • Securities representing a proportional interest in a pooled investment fund consisting of short-duration U.S. Treasuries and Servicing Assets (i.e., Aaa- rated US government-only money market mutual funds)
  • Backed by an underlying asset pool of collateral managed by a professional manager of short-duration US Treasuries and Servicing Assets
  • Issued with an original term of 10 years
  • Pay an expected return comparable to a US government money market mutual fund
  • Redeemable at par on each annual anniversary of their issuance, and at maturity
  • Also redeemable at an any other time for same-day settlement, either in a proportional share of underlying collateral assets or in cash from the liquidation of such assets (i.e., the liquidated asset value, or LAV)
  • Provisionally rated (P)Aaa(sf) by Moody’s
  • Listed on the International Stock Exchange and freely transferrable, with a CUSIP and an ISIN
  • Fully marketable and may be sold at any time, via a broker [or designated market maker]
  • Repo eligible
  • Issued by a single-transaction/single purpose Irish Designated Activity Company, which is an orphan special purpose company formed under the Irish Designated Company legislation

Combining the best of Cash, Money Market Funds and Treasury Bills

FOR PROFESSIONAL INVESTORS ONLY

 

RISCMTP-Notes

Merganser-1: USD 3,000,000,000 – [May 30] 2023

 

 

Why Use RISCMTP-Notes?Key Facts

 

  • Versatile collateral instruments: more liquid, capital- efficient and useful than short-term credit assets (e.g., CDs, CPs and bank deposits), government money  market funds or ETFs
  • Acceptable for a wide range of liquidity, collateral and regulatory applications
  • Exchange-listed transferrable securities with a CUSIP and an ISIN that can be delivered and pledged, re- hypothecated as collateral, unlike a government  money market fund
  • Securities representing a proportional interest in a pooled investment fund consisting of U.S. Treasuries and Servicing Assets that provide an attractive  alternative to investing in government money market  funds and bank deposits

 

Essential Features

  • Portfolio of predominantly short-duration U.S. Treasuries, all maturing and settling prior to each Annual Optional Redemption Date and Maturity Date
  • Exchange-listed
  •  Tri-party and repo-eligible
  • Sold at a premium of 1% (the Utility Premium) to provide for 10 annual (in-advance) payments to cover non-IM-related fees and expenses, of which 0.15% will  be earned and paid at launch. The remaining 0.85% will  be earned and paid in 9 equal annual instalments of ~0.0944 from year 2 to 10 (the sum at launch being the  Unearned Utility Premium or UUP)
  • Redeemable at any time “at market“ for delivery of a proportional share of the collateral pool assets (i.e., “in kind”) or in cash (i.e., at liquidated asset value, or LAV)  for same-day settlement

Issuer

Issuer LEI

Issue Price

Book Value

Bloomberg Ticker

CUSIP / ISIN

Rating

Issue Date

Final Maturity Date

 

Issue Size

Min. Investment

Coupon

Listing

Listing Agent

Issuance Type

Max WAM

NAV Price

Investment Manager

Calculation Agent

Custodian

Settlement Agent

 

RFP DAC

5493000WIF6XDGUD2E77

101.00%

Par + applicable UUP at closing  (100.[85]%)

RFPSGP

G75730AA2 / USG75730AA25

[P]Aaa(sf) by Moody’s

May 30], 2023

May 30], 2033, with Issuer and  Noteholder rights to redeem at Book Value (Par + UUP) on Annual  Optional Redemption Dates

Up to USD 3,000,000,000

USD 10,000,000

Quarterly in arrears on a pass-  through cash basis.

International Stock Exchange

Matheson

Reg. S

6 to 9 months

Posted to Bloomberg daily

Merganser Capital Management

The Bank of New York Mellon

The Bank of New York Mellon

The Bank of New York Mellon

 

Performance Plus Utility
  • Competitive with O/N Fed Funds Effective Rate, 3- to 6-month U.S. Treasuries and government money market funds
  • Attractive (top tier investment manager) managed returns with a daily price on Bloomberg
  • Capital preservation and low volatility
  • High credit quality short term investment plus anticipated use as collatera

Combining the best of Cash, Money Market Funds and Treasury Bills

 

RISCMTP-Notes

Merganser-1: USD 3,000,000,000 – [May 30] 2023

 

 

RISCMTP-Notes Comparison

Money Market FundsRISCMTP-Notes employ money market management techniques and a professional  investment manager to achieve expected returns comparable to those on government  money market funds in a listed, rated, fixed income security that enables the investor  to exit at any time for same-day settlement, without gating or penalties, and on Annual  Optional Redemption date at Book Value
Treasury BillsRISCMTP-Notes are the closest thing to owning Treasury Bills without having to choose  or manage them in-house (i.e., without the benefit of a professional investment  manager)
CashRISCMTP-Notes are more credit-friendly and capital-efficient than posting cash  collateral and are expected to provide a more predictable, managed return
ETFsRISCMTP-Notes are redeemable annually at Book Value but are redeemable at any  other time for same-day settlement in kind or in cash (at LAV). Similar to zero risk-  weighted ETFs but more acceptable as collateral and therefore have greater utility

 

Anticipated UsesLiquidity Options
  • High credit quality short-term investment
SellAt any time, via a broker [or designated  market maker]
  • High credit quality short-term collateral (upgrades)
RedeemAt any time for same-day settlement, either in the investor’s proportional  share of RISCMTP-Note Portfolio assets,  or in cash from the sale or liquidation of  such assets at LAV
  • Derivatives collateral margin (IM & VM)
At any time
  • Repo collateral
  • Admitted asset
  • Regulatory reinsurance collateral
 

 

Additional Information

  • 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 U.S. 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 U.S. 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 RFPS

Combining the best of Cash, Money Market Funds and Treasury Bills

Learn More About RISC Managed Treasury Pool Notes
Thank you for your interest in RISC Managed Treasury Pool Notes.Please fill out your information and we will contact you shortly with more information on this opportunity.

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Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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