We find new ways to tap into trillions of dollars of illiquid assets.
Karson Financing Platform
Karson’s Liquidity and Collateral Financing Platform enables large regulated financial institutions to satisfy their regulatory liquidity, capital and collateral requirements across a standardized, secure and scalable platform.
The Platform utilizes industry template-based transaction documentation, independent model-based valuations and the BNY Mellon collateral management and tri-party processes to create a standardized and bankruptcy-proof investment product that provides a yield pick-up relative to covered bonds.
Karson will charge clients arms-length service fees but to share up to 75% of its profits and any change-of-control proceeds with a core group of “member” clients.
A KT-Note is a high-quality, redeemable note backed by US Government securities. KT-Notes have been designed to be used for a wide range of market applications, such as
- Replacing Collateralised LOCs
- An investment asset
- Derivatives collateral
- Reinsurance collateral
- Funds at Lloyds
- Canadian RSA
KTastrophe-Notes are a new form of senior non-preferred bank debt. KTastrophe-Notes are designed to qualify as Total Loss Absorbing Capacity/Minimum Requirement for Own Funds and Eligible Liabilities (TLAC/MREL). They are subject to write-down and conversion to equity upon the bank’s reaching the point of non-viability.
Karson Financing Notes (KFNs)
Regulated financial institutions seek to borrow at reasonable prices to meet their liquidity and term financing needs using their illiquid balance sheet assets as collateral. KFNs are highly rated, exchange-listed, fully-secured Financing Notes that are more secure than comparable unsecured debt and are not subject to bail-in rules, where applicable.
KFNs will pay a variable rate of interest roughly equal to the unsecured borrowing rate of the Reference Borrower.