About Providers of Collateral Transfer

Companies that provide Bank Guarantees for leasing purposes the formal term being Collateral Transfer are in great demand and not available to the uninitiated in the Collateral Transfer market. IntaCapital Swiss who are renowned for their deep knowledge of Bank Guarantees and for their close working relationships with Providers and Provider Groups, ensure access to these groups on day to day basis.

Provider Groups are familiarly known in Collateral Transfer circles as Hedge Funds, Sovereign Wealth Funds, Private Equity Funds, Institutions with large cash balances and Larger Family Offices, and have unrivalled access to asset bases, a small part of which they utilise to enter into Collateral Transfer Agreements, with other companies, known as Beneficiaries.

The Collateral Transfer Agreement allows the Provider to transfer a Bank Guarantee to a Beneficiary for a limited period of time. Under the Terms and Conditions of the Collateral Transfer Agreement it is incumbent upon the Beneficiary to pay a fee to the Provider for the use of the Bank Guarantee. This fee is alluded to as the Collateral Transfer Fee.

As with all portfolios, there are always underperforming assets and securities such Medium-Term notes or highly rated government bonds that carry low bearing coupons or interest rates. Provider Groups will use these assets and securities as collateral to provide Bank Guarantees for Collateral Transfer, where they enjoy a much higher return.

IntaCapital Swiss have been working closely with Providers and Provider Groups for many years, and together with their unique financial product, the Collateral Transfer Facility, which utilises Bank Guarantees, continue to bring loans and lines of credit, referred to as Credit Guarantee Facilities to those companies starved of such facilities.