BWT Capital

BWT Capital is a privately owned institutionally managed Luxembourg company which creates, originates, owns, manages and licenses high yield debt instruments issued by institutionally managed Luxembourg Special Purpose Vehicles ('SPV') which are offered to, or sold through, regulated and licensed institutions.

BWT Capital works with a limited number of key investment banking, industry, and distribution partners, in order to deliver high yield products which are statistically extremely safe.

BWT Capital believes that the rigid debt and equity products which exist today have become far too inflexible, take too long to deliver, and ultimately give neither the provider, nor the recipient of that capital, what they want and need.

The old conduits of capital have too many blockages

Capital Arbitrage

Essentially, assets / revenue streams which are undervalued for a particular reason, are identified and purchased, using established Operating Partners in each industry / sector ('Price Arbitrage'), and then a sufficient size of pool of these assets / revenue streams with similar profiles are accumulated, so that the risk and standard deviation associated with the pool is very low relative to that of one of those assets / revenue streams ('Risk Arbitrage').

The combination of Price and Risk Arbitrage is what is defined as Capital Arbitrage.

The validity of the data, and the assumptions used, the validity of the mathematical, statistical, and risk analysis model used, and the degree of certainty about the Standard Deviation, is achieved by BWT Capital working closely with retained industry research and consulting firms, and mathematical, statistical and risk analysis firms respectively.

BWT Capital, with its industry Operating Partner for that specific sector, sets up an institutionally managed Luxembourg Special Purpose Vehicle ('SPV') for each sector or asset class, which acquires that asset class, and then issues high yield asset-backed securitization bonds ('ASB').

ASB Products

While there are a number of unique features of ASBs created by BWT Capital, there is a fundamental and overriding unique feature.

Capital Arbitrage enables the ASB Bondholder to receive a significantly higher fixed rate of return than the underlying risk warranted by the asset pool which backs the ASB. i.e. the risk / return ratio for the Bondholder is much more attractive than is available for other instruments or investments, because of the value created by Capital Arbitrage.

Other key features are the following.

The Product

• No market risk
• High fixed interest rates, not 'potential' NAV returns
• Option of quarterly interest or interest compounded annually until maturity
• Fixed maturities ranging from 1 to 7 years
• Multi-currency option
• Insurance 'wrapper' availability
• No fees or expenses charged to ASB Bondholders

The Risk

• Institutionally managed Luxembourg Special Purpose Vehicle Issuer
• Specialist Investment Banking Advisor to the Issuer
• Asset Class and Type Restrictions
• Asset Cover Requirement
• Key Industry Operating Partner
• Sophisticated statistical modeling and risk analysis
• Institutional Security Structure, with Custodian, Bond Registrar and Payment Administrator functions
• Luxembourg law

The Result

• Very attractive risk / return ratio

Currently Offering;

• Tranche 16, Series 1 EUR denominated, 11% per annum paid quarterly on 15 November, 15 February, 15 May and 15 May each year until maturity on 15 November 2013
• Tranche 17, Series 1 GBP denominated, 11% per annum paid quarterly on 15 November, 15 February, 15 May and 15 May each year until maturity on 15 November 2013

E-mail us now to get prospectus and fact sheet for this fund