What is the collateral for the loan?
The financial success of the transaction hinges on several important components – counterparty exposure, asset allocation and an ability to meet annual required contributions. Dryden has developed several customized solutions to maximize the return of the loan which are designed to suite the client’s risk parameters. The customized portfolios are structured to amortize over the course of the transaction, provide incremental income to off-set the cost of funding as well as in some structures provide a hedge against medical care inflation. Typically, it is the highly rated investment grade securities which serve as the collateral of the loan.
