Asset Repackaging
Depending on the country where you are based, and your regulatory requirements and constraints, we are able to offer you repackaging of various investment ideas, in oder to match your single issuer limits, single risk limits, and other restrictions that you may have. Our repacks are liquid, often leveraged and done using the balance sheet of one of our respectable partners.
We also conduct more complex repackaging activities, yet as it is still a proprietary technology of Vision Finance, we ask you to contact us if you would like to discuss this issue further.
Repacks will usually mean that you will sell one asset and instead buy another one, of very similar type, but with different regulatory treatment.
Regulatory Treatment Benefits
Principal Protected Notes tend to have a different treatment to standard risky notes, despite the fact that often long dated Principal Protected Notes offer very similar actual protection of money at present values.
In addition, with the right structuring, what you can see as debt, others can interpret as equity, what enables them to pay you a higher rate of return - on what you would normally consider to be debt.
Though in the current times it is difficult to keep a technology in-house,. Vision Finance has structured such repacks that we believe are not currently done by any of our competitors and as such we ask you to contact us directly for more details on it.
Jurisdiction Benefits
It is clear that various assets have various tax treatments. Vision Finance has extensive knowledge of available double taxation treaties, enabling you to locate investments in special jurisdictions enabling you to plan and manage your tax liabilities in the more predicting manner.
Leverage
One of the key reasons for repackaging assets is to obtain higher level of leverage, and hopefully higher levels of return.
Vision Finance can help your fund to obtain leverage on various securities that you have, from simple bonds and equities to even complex structured products such as senior tranches of CDOs, CLNs, RMBS and CMBS instruments. Indeed from our knowledge there is currently only one bank that offers repo instruments on the structured products. You are welcome to investigate it yourself, or call on Vision Finance to assist you with both obtaining the leverage, and with the structuring of the trade.
Indeed, structuring of the trade, and ability to purchase protection on the floor is often needed to structure the right leverage transaction. Vision Finance has structured number of such transactions, where the leverage was provided by Firm A, while the majority of the risk was distributed via the repackaged instrument to Firm B.