The fixed-income sleeve
Public fixed income can remain liquid while correlations and yields change the diversification role it was hired to play.
Our first principle, for institutions
Yield and liquidity. Not yield or liquidity.
A laddered portfolio of defined-income notes seeks the income of a private sleeve with daily pricing and risk written down before commitment.
One sleeve can diversify less. The other can close the door.
The private-credit sleeve
Private credit may provide attractive income while asking the allocator to accept lockups, gates, and less transparent marks.
The goal is income you can plan around without surrendering daily visibility.
You set the cadence. You know the condition.
The proposed allocation uses senior unsecured notes from investment-grade global banks.
Defined income.
Targeted annualized income is established in the note terms and may be scheduled around liability or spending needs.
Defined risk.
The stated index barrier at maturity and issuer credit are the central named conditions.
Daily pricing.
Individual CUSIPs receive independent daily marks and can be laddered across maturity dates.
Your CUSIPs. Your custodian. Your schedule.
Know where the risk lives.
A defined condition makes risk easier to read, but it does not remove market or issuer risk.
~50%
targeted downside barrier measured at maturity
The index level at maturity determines whether the barrier condition has been met. Issuer creditworthiness and the market value of any sale before maturity remain separate risks.
Risk you can name, monitor, and bring to a committee.
Barrier levels are targeted at issuance and vary with the note, issuer, underlying, term, and market conditions. Capital treatment and accounting conclusions require independent review.
Questions about a private-credit alternative
View all FAQsHow does this approach differ from private credit in liquidity and valuation?
Structured notes generally have individual CUSIPs and observable market marks, while many private-credit vehicles use less frequent valuations and contractual lockups or gates. That distinction does not guarantee easy execution or a sale at par. Secondary bids can be limited, and market value can change with the index, rates, volatility, term, and issuer credit.
Which risks replace private-credit lockup risk?
Greater market-price visibility and potential secondary liquidity come with different risks: linked-index losses, issuer default, barrier or maturity conditions, complexity, and unfavorable early-sale pricing. Comparisons also depend on fees, leverage, seniority, diversification, tax, and accounting treatment. Any yield comparison must use current, sourced, like-for-like figures with a visible as-of date.
Defined income. Bounded risk. Daily pricing.
Explore an allocation designed around income needs, maturity conditions, and institutional visibility.
~10%Targeted annualized yield
~50%Targeted downside barrier
DailyIndependent pricing
Income without automatically surrendering visibility.
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