Case Study: Structured Investment Product for Portfolio Diversification
- Situation: Banks need diversification within their investment portfolios toward CRA. At the same time, the need for investment in small businesses is critical to improving the current United States economy.
- Approach: Designed a structured investment product that supports small business development while providing a CRA-eligible investment opportunity for banks.
- Result: The Fund structure was designed to raise funds for investment in Small Business Development Companies, which are CRA-eligible investments that support small business growth, as well as job creation and job retention.
Case Study: Structured Investment Product for Community Investment Act Regulatory Credit
- Situation: Banks need to make investments that qualify for Community Investment Act regulatory credit. Traditional investments in mortgage securities have proven riskier than expected and the return characteristics for other CRA investments are often disappointing.
- Approach: Designed a structured investment product that is eligible for CRA credit comprised of assets that serve to raise yield expectations.
- Result: The Fund supports affordable housing development, while also supporting investments and loans to small businesses.
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