How liquid are Trust Deeds with Vanguard Funding Corp.?
Trust deeds are not a liquid investment. Our current trust deeds are written for a period of 24 months. Investors that elect trust deeds are advised that their money will be invested for the life of the note or until the borrower pays the note in full. As in previous examples, borrowers do not have a pre-payment penalty and can pay the balance of their note at any given time. On average our borrowers repay their notes between 12 and 18 months, not the full 24 months.
