Tri-Party Collateral

For Large Investments In Excess Of The FDIC/NCUA Insurance Level Of $250,000.

The Tri-Party Collateral structure is for large investments in excess of FDIC's or NCUA's insurance level of $250,000.  Issuers will secure your deposit with a portfolio of assets, typically US Treasuries and Government Agency obligations, that are held by a third-party who acts as custodian for the collateral to ensure that in the event the issuing bank fails, the depositor can take immediate ownership of those assets to sell them in the secondary market in order to recoup up to 100% of that investment.

These structures allow you to make one large investment with one bank, eliminating the need to open up a series of separate CDs at dozens of banks or credit unions to accommodate a multi-million dollar deposit while allowing you to capitalize on one attractive rate of return, instead of a blending of many rates, some less attractive than others.  My Team and I have access to a captive audience of banks who we will communicate your specific investment needs to and negotiate the highest return value for your institution.  Most structures allow for over 100% in collateral to be set aside (typically 102% up to 110%) and mark-to-the-market daily to ensure the collateral on file remains adequate to cover your investment.

Surety Bonds