Risk Solutions : Residual

Residual Value Bonds are used to reduce asset risk when financing or lending against assets or portfolios of assets. They guarantee a minimum value for an asset at an agreed point of time, allowing predictable, successful planning and funds management.

Uses

This form of risk transfer is used by financiers or organisations requiring assistance to finance assets in off-balance sheet transactions. It is also used by manufacturers to remove or reduce residual value exposure from their balance sheet.

Suitable Assets

Most assets which have a reasonable economic life and future value can be underwritten with a Residual Value Bond. Individual assets of sufficient size, such as aircraft, vessels, major equipment or real estate can also be underwritten with a Residual Value Bond.

Risk Solutions International has recently provided Residual Value Bonds for Aircraft, Manufacturing Plants, Office Buildings, Marine and Mining Assets.

Risk Solutions International sources capital for Residual Risk in Australia, Europe and the United States.
Only underwriters with a S&P rating of A or internationally accepted equivalent are used.