Robin Hood Finance Limited

benefits - Why use RHF?

Price and Cost: the Mercedes Case. RHF offers the benefit of many years’ experience and a proven track record. We speed up the process, and make it as efficient as possible. We bring in the best deal for the customer, saving time and money.

Just like hiring a lawyer or accountant, a fair price has to be paid for this. We have heard many times from potential customers the words “we can do this ourselves”. The logic seems to be that a reduction in up-front costs is more attractive than a much larger benefit over time. It also assumes that current staff have lots of free time to spend on learning everything about securitisation and structured finance, then negotiating and implementing a deal.

A Mercedes is not a cheap car. The price is higher than many others. However, it has been shown many times that a Mercedes depreciates much less than many other makes, so that it is possible to re-sell at a much higher price. So the cost of a Mercedes is lower, even though the price is higher. And you’d rather have a Mercedes than a cheap car. Wouldn’t you?

Independent Advice. RHF is able to provide independent advice to

  • Potential investors
  • Potential originators (owners of assets who want to fund them)
  • Owners of ABS bonds or portfolios
  1. Investment. Is it right for my business to invest in ABS? What are the right assets to invest in? What are the risks on these bonds? What is a fair yield?
  2. Feasibility. Are the assets right for securitisation? Are the systems and information adequate? What changes might be needed? What might it all cost? What are the alternatives? Is securitisation right for me?
  3. Existing portfolios. Should I hold or sell? Which bonds in my book are more risky than others?
  4. Is securitisation the right way forward? The securitisation department of a big bank, however well-established the relationship, has a product to sell and targets to meet. RHF offers truly independent advice.
  5.  Choice of counterparty. Ensuring that the best deal is negotiated based on over 20 years of securitisation experience. An arranger acts in his own interests, not those of the customer. RHF helps the customer to get the deal he wants, not the one the bank wants him to have.
  6. Preparation for rating agency meetings. RHF can rehearse key staff in what to expect in these vital meetings.
  7. Assistance during the execution of the transaction. Originators have their normal business to run, and a major transaction can significantly detract from this. RHF helps to make the execution go as smoothly as possible.
  8. Post closing. The work is not all over when the documentation is signed. Issues may arise during the course of the deal, whether related to assets, accounting, funding (e.g. after a couple of years, could we refinance more cheaply?). RHF can assist with this.