Robin Hood Finance Limited

case studies

1) Medium-sized European bank: liquidity

Situation Bank approached RHF regarding raising liquidity from balance sheet assets due to perceived need to increase liquidity availability

Solution RHF designed a feasibility study in several stages to lead to the potential securitisation (or repo funding) of various asset pools

2) German Sparkasse

Situation Bank had a portfolio of corporate and other loans which contained risks which did not match their requirements

Solution RHF analysed portfolio to rating agency standards, and reported to Board. RHF then researched and set out the pros and cons of various available risk transfer methods and their pricing in current markets for Board to make final decision

3) German debt/factoring specialist

Situation Company wanted to enter the trade receivables securitisation market.

Solution RHF designed product for customer, including term sheets for entire deal (in English) and for customers (in German). Work included researching the market, competitors’ offers, pricing, legal, accounting and negotiating terms with various service providers.

4) Large bank: specific risks

Situation Bank had very large concentrations of risks on specific entities, which hampered growth in business.

Solution RHF analysed the risks and reviewed with senior management the various ways of transferring some or all of the risk to various parties. Methods included insurance, cash securitisation, synthetic securitisation, credit-linked notes. RHF also recommended ways of minimising the problem going forward.This project is in progress at the time of writing.

5) Medium-sized bank: NPLs

Situation Bank had a portfolio of Non-Performing Loans. Bank had received an unsolicited offer to buy NPLs.

Solution RHF examined existing systems & procedures and benchmarked these, including identifying the REAL costs, then compared with both unsolicited offer and another external offer. In this case, the preferred route was not to sell, but the in-house processes were made more efficient.

6) UK Factor

Situation UK company in the factoring sector was limited in growth due both to size of existing bank line, and margin being so high as to make business with larger customers unprofitable.

Solution RHF examined portfolio for securitisation purposes and assisted customer in choice of arranging bank. However, securitisation would have restricted new business lines, so ultimately RHF recommended new bank funding, which came in at less than half the initial margin cost.

7) Turkish Auto Lessor

Situation Lessor was dependent both on local banks and overseas parent for funding. Parent asked RHF to examine other options.

Solution RHF examined systems and procedures in addition to the portfolio. It was found that new procedures and credit systems were necessary to prepare for securitisation. RHF assisted Lessor in defining systems which are “securitisation compliant”.

8) European Corporate

Situation Corporate (B+) relied on loans from parent. Parent wanted Co to become self-reliant for funding. Co had €150m+ of trade receivables.

Solution RHF worked with Co to define objectives, then obtain and analyse in a standardised way offers from four banks. After several rounds of negotiation a mandate was awarded and a programme put in place to the satisfaction of Co and parent.

9) Systems Company

Situation International systems company which provides middle-office systems to many well-known financial institutions wished to increase key staff’s level of understanding of capital markets.

Solution RHF developed a 1-day course introducing the building blocks of capital markets, including bonds, loans, FX, swaps and options. The course was very well received, and is to be repeated.