Investors are offered regular opportunities for short and medium term fixed income investment at attractive yields, in particular compared to the public bond markets. LGB arranges MTN programmes for its corporate clients looking for flexible medium term debt financing funding.
Our regular flow of offerings encourages investors to build laddered portfolios of MTN issues in order to diversify credit exposure and generate regular cash flow. Investors receive regular interest, generally on a quarterly basis.
What are MTNs?
MTNs are secured, either by way of first lien or robust second lien with a security trustee to monitor financial and business performance, covenants and collateral on behalf of investors, removing the need for individual monitoring and action. Our thorough due diligence and close partnership with our corporate clients is reflected in our low historic default rate and high capital recovery in default situations.
How to participate?
New issuance across an extensive range of existing and new issuers is regularly offered to our investors through the LGB Investments platform.
We regularly onboard new investors. Once they have been through our KYC process, platform account holders will have access to investment opportunities, be able to hold MTNs and any other tradable securities on the platform, and monitor their portfolio regularly.
Please note that these investments are only suitable for professional investors and sophisticated HNW private investors – read more here.
- Attractive fixed income yields with interest paid gross
- Origination, sourcing, credit assessment, due diligence and ongoing monitoring undertaken by LGB
- Regular new issuance allows the creation of a diversified portfolio and the opportunity to gradually build a laddered portfolio of issues
- Diversification away from the public bond markets
- Robust security arrangements
- No active secondary market
- When investing in MTNs, your capital is at risk. It is not covered by the Financial Services Compensation Scheme (FSCS). Interest payments are not guaranteed if the issuer defaults. It may be impossible to recover all or part of a loan by calling in the business assets held as security on that loan.
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