Risk Transfer Guaranty Bond™
The Risk Transfer Guaranty Bond™ (the “RTG Bond™”), a type of covered bond, is an alternative to traditional bank lending or complex structured debt instruments. An RTG Bond™ allows enterprises seeking project specific or general corporate funding to access the $44 trillion US bond market. For companies with assets under management, the RTG Bond™ creates instant additional liquidity on a balance sheet neutral basis. An RTG Bond™ offers investors a higher yielding AA rated alternative to other similarly rated fixed income securities.
At its most basic level, an RTG Bond™ is a combination of a reserve account creating a cover pool of assets and an investment account both funded with cash from the bond closing proceeds. The reserve account cover pool purchases and holds only highly rated debt such as US Government obligations, and is bankruptcy proof.