SWP Capital’s lending program creates an excellent opportunity for investors to earn a fixed annual return significantly higher than bank deposit rates.
, for a term of 90 days or more, at absolutely no risk. The notes are issued by SWP Capital and are fully secured by gold and silver stored by Strategic Wealth Preservation (SWP) in the Cayman Islands.
Investors can invest in a PMBSN, issued by SWP Capital, which is fully backed by a segregated portfolio of precious metals held securely by SWP. Terms vary from 3 to 12 months with interest fixed and payable upfront. The minimum investment amount is USD $200,000. Apply to invest today.
All PMBSNs are fully backed by physical gold and silver bullion held by our sister company, SWP, who specialize in offshore precious metals trading and storage. SWP operates a purpose-built Class III UL rated storage facility which is insured by Marsh, underwritten by Lloyds of London (US$500M) and is subject to annual financial audits conducted by Grant Thornton and annual physical audits conducted by Bureau Veritas.
SWP precious metal clients can borrow against their precious metals held at SWP by using a segregated portfolio of their metals as collateral security, in support of a metals margin loan granted by SWP Capital. Margin loan proceeds can be used by SWP clients to increase their investment in precious metals through SWP, other assets and/or generally increase their liquidity position.
Clients who meet our criteria complete an SWP Capital metals margin loan application for SWP Capital’s review and approval. Once approved, SWP Capital will lend up to 75% of the market value of precious metals held with SWP that are segregated in the client’s precious metals account and secured by a repurchase agreement. This portion is known as the initial margin equal to 135%.
A maintenance margin is defined as the minimum market value of the segregated portfolio that must be maintained at all times, equal to 120% of the margin loan amount. In the event the market value of the collateral falls below the maintenance margin, SWP Capital will ask the Borrower to add to the collateral, sell collateral and/or inject cash to pay down the outstanding principal balance under the margin loan, that will be sufficient to restore the maintenance margin. When this happens, it's known as a margin call. Borrowers are given 5 days to restore the maintenance margin.
A margin call is effectively a demand by SWP Capital to restore the maintenance margin. If the Borrower does not meet the margin call SWP Capital can instruct SWP to sell sufficient collateral to restore the required maintenance margin. SWP Capital can do this without the Borrower’s approval. In the event the market value of the collateral drops further, and the margin cover drops to 110% or less, SWP Capital will immediately instruct SWP to sell sufficient precious metals held in the segregated portfolio to restore the maintenance margin. The Borrower would be notified after the fact.
In the event the Borrower fails to pay interest and/or principal when due, SWP Capital will instruct SWP to sell precious metals in the segregated portfolio sufficient to repay the outstanding interest and principal and use the proceeds to retire the matching PMBSN held by the Investor.