Buybacks - Controlled Liquidity

Market conditions, rising interest rates and your own business financial situation can have a dramatic impact on the liquidity of your portfolio.

Cuscal’s Buyback guarantee enables you to receive an immediate cash injection of funds when the need arises. Uniquely, we will purchase all or part of your original investment back without imposing a financial penalty; enabling you to ‘smooth out’ turbulent liquidity flows and continue to meet your set HQLA ratios.

The buyback product offers you the following features:

• Cuscal uses the current market yield at the time of the buyback deal as a purchase guide. This means you aren’t bound by complex buyback restrictions. If interest rates are higher than your original investment, you will incur a loss from the transaction. If, however the original rates are lower, you receive any and all capital gains due to you.
• BuyBacks can be used as a viable alternative to additional borrowings as an investment facilitator. Because they may have a positive impact on the repricing structure of your balance sheet, they can be used as an effective tool for interest rate risk management.

Smoother liquidity, increased convenience, greater flexibility... Cuscal’s BuyBack guarantee lets you take back control of your investment portfolio liquidity and meet your HQLA ratios.