YESbonds™ can pay up to 250 basis points more than 10-year US Treasury Bonds, but can be constructed so that the interest rate floats up when the longevity assets and the growth company loan performs.
Here’s how it works:
- A separate SPV issues each YESbond.
- All Assets are held by a Trustee. (This is a settlement Industry standard practice).
- A significant portion of the bond proceeds are invested into longevity assets (typically, life settlements and reverse mortgages).
- A significant portion of the principal is loaned to selected emerging growth companies.
- The rest of the net bond proceeds are invested in High Quality Liquid Assets.
The bond’s yield may be enhanced when the Longevity Assets and the emerging growth company-loan perform. The result allows for “private equity-like potential upside with investment-grade bond-level safety.”
We created YESbonds to fund exciting new companies that represent a significant positive step forward, for promising growth companies and investors looking for yield. To verify minimum expected returns actuarial stress testing by top industry experts is performed to confirm that the cash-flow from the longevity assets should retire the YESbonds even when the emerging company loan and warrants fail to perform.
YESbond Investors get 15-Year Investment-grade bonds that can pay well over above 10 Year Treasuries, backed by significant Collateral, consisting of:
- Longevity based assets (Life Settlement Policies, reverse mortgages)
- Marketable Securities
- Borrower Company Assets
Our Plan is to Issue Many YESbonds
Currently, there is a record amount of liquidity. Rates are historically low. Investors are still living in fear from the last recession. They want safety. There’s shortage in growth capital. A gap exists between small angel investors, crowd-funders and the very large VCs. Regulations have forced banks out of the market. So, most growth companies grow organically rather than deal with the existing prohibitive capitalization options. Many lenders are now turning to “Alternative Asset Financing.”