Provider Groups
IntaCapital Swiss is a highly sought-after boutique finance house. They offer many high quality and unique products that have been satisfying their global clientele for nearly a decade.
Who and What are Provider Groups
There are very few providers or provider groups in the world. What exactly do they provide? They provide bank guarantees and sometimes subject to jurisdiction standby letters of credit for the Collateral Transfer market.
These are an elite group of companies found in or near to most of the major global financial centres. Recognized for their access to billions in assets they are sovereign wealth funds, hedge funds, senior family offices and private equity funds.
Why Providers Provide Bank Instruments
Why would these hugely rich and sophisticated investors be interested in providing bank instruments for collateral finance? The answer is one word. Profit! As with all major portfolios the assets are spread across the financial spectrum.
Within the portfolio will be the low risks assets returning comparatively small interest rates. Such assets are recognised as medium-term notes or government bonds. Providers will offer these instruments as security to their bankers in order to issue bank guarantees.
These bank guarantees are then leased into the collateral transfer market for an average return of 6%. The providers will sign a Collateral Transfer Agreement with another company looking to lease a bank guarantee. Add this 6% to the current return on the low risk assets and there is a much healthier looking item on the balance sheet.
For further information on a Collateral Transfer Agreement and leased bank guarantees please see Collateral Transfer.
IntaCapital Swiss and Provider Groups
It is pertinent to point here that IntaCapital Swiss is a major player in the global collateral transfer market. As collateral transfer makes use of bank guarantees it is important to have an on-going relationship with provider groups.
Provider groups are one of the main reasons IntaCapital Swiss are so successful in the collateral transfer market. Without provider groups there are no bank guarantees to lease. No bank guarantees no collateral transfer.
IntaCapital Swiss has been working hand in hand with provider groups for nearly a decade and have built strong relationships. These relationships have allowed IntaCapital Swiss to continue to grow their influence in collateral transfer market.