ARSL has vested collateral of all types, ranging from securitization
of precious and industrial metals, to land development and life settlements. Using
otherwise difficult to value assets and collateral as a means to back financing
structures creates additional options that extend beyond the traditional methods.
RSL also has extensive networking agreements
with insurance underwriters and financial institutions that,
in turn, provide credit enhancement through use of annuities.
Principal payments and interest can often be guaranteed (given sufficient collateral)
for a fee; thus bridging the benefits between highly creditworthy institutions and
the financial structure of a lesser-known entity (client). The financial solution
will have advantageous cash flow and tax structure for the client. Credit enhancement
can increase client credit rating that, in turn, induces a wider scope of investors
and increases the investor appetite for a security. Often, sources of finance are
found that would otherwise be unavailable to some recipient clients, particularly
those of emerging and developing nations. This is a fixed rate Financing with primary
applications for expansion and leveraged buy-out situations. There absolutely no up-front fees.
Depositor provides all funds required for the transactions, structuring and applicable
documentation.
ARSL arranges the issuance of Stand-By Letters of Credit as well as Documentary
Letters of Credit on behalf of its clients. Typically, these instruments are collateral
or asset backed. Moreover, ARSL has successfully issued Letters of Credit backed by the above
mentioned Life Insurance Settlements as a means of raising investment capital. Letters of Credit
can also be issued using with a wide variety of assets ranging from bonds to precious metals and gems,
land and other physical assets. ARSL has developed many unique opportunities undertaking public debt,
financing projects for national and sub-national authorities (as stated earlier) particularly in the
developing third world. ARSL has access to a wide panoply of financing sources for all levels of
government-sponsored projects; municipal, regional and national.
Stand By Letters of Credit can be used to :
Secure a real estate transaction
Support a lease agreement or credit enhancement
Substitute for a performance bond
Expedite trade, both domestically and internationally, subject to approvals.
A Life Settlement is, by definition,
the purchase of a Life Insurance Policy from
the insured individual at a price greater than the
cash surrender value of the policy, thus creating a secondary
‘cash out’ market value. The purchaser of such policies then
becomes the beneficiary of said policy and, by extension,
undertakes to maintain the premiums still owed on the policy
until such time as the original beneficiary of the policy is
deemed able to cash in for the proceeds of said ‘death benefit’.
ARSL has been extremely active in collecting and
administering these policies through portfolios
tailored to its clients. ARSL builds these portfolios
to meet the wide and differing needs of its client investors.
The use of all life policy types is reviewed while building a
specific use portfolio. Life policies can range widely in the
areas of face value, contestable or non-contestable asset
redemption status, and amount of premiums to be financed.
ARSL can provide investors with the highest quality life settlement investments. These investment grade instruments typically have LE’s (“Life Expectancy”) of up to ten years. Every policy has gone through a rigorous due diligence process. Investors can achieve higher IRRs as a result of the bell curve that occurs when individual policies within a pool, mature at an earlier LE than projected. Life Industry Actuarial Tables predict actual LEs within 98% accuracy. Long term investments in life settlements when compared with other fully secure investments are a very attractive option in a portfolio diversification strategy. Long - term care insurance is the most familiar option and is designed specifically to pay the expenses associated with long-term health problem. Long-term care policies cover many major costs that aren't covered by Medicare, such as home health aides and nursing home care. But because they are designed for this need, they tend to have the highest cost. Some people , concerned about paying for a long-term care policy and not using the benefit, prefer an option with more flexibility.
Carefully choosing the quality of your investments can help reduce the likelihood of a collateral call. Other risk management strategies you should consider include :
Borrowing less than the maximum allowable against your securities.
Borrowing against a portfolio of less volatile securities, such as Treasury securities,
high-grade corporate bonds or blue-chip stocks.
Diversifying your portfolio through an asset allocation strategy that minimizes
exposure to losses in one sector of the economy.
Monitoring your portfolio carefully, especially in periods of volatility, so that
you can take appropriate steps to avoid a maintenance call.
Secure a real estate transaction