© 2019 by Goldman Landow Capital, LLC

Goldman Landow Capital, LLC, offers securities through Fox Chase Capital Partners, LLC, an SEC‐­registered broker dealer, member of FINRA, SIPC, and MSRB.

U.S. TREASURY ALPHA PLUS

ABOUT U.S. TREASURY ALPHA PLUS

  • U.S. Treasury Alpha PLUS is a proven process by which Beneficial Owners of U.S. Treasuries generate yield enhancement through the exchange of one Treasury security for another Treasury security using SIFMA Master Repurchase Agreements, or direct buys and sells with an approved counterparty.  At the time of each repo exchange or with each buy and sell execution the Beneficial Owner adds yield to their underlying U.S. Treasury portfolio. 

  • Alpha PLUS is an ultra-conservative way for Beneficial Owners to enhance the yield on a previously purchased portfolio of U.S. Treasury securities.  In exchange for the potential yield enhancement offered by Alpha PLUS, the Beneficial Owner must be indifferent to holding and potentially owning a replacement Treasury security which matures within a 16-day radius from the Beneficial Owners original security.

  • Alpha PLUS is a strategy for Beneficial Owners of Treasuries who want a higher risk-adjusted return relative to traditional securities lending, while retaining their ability to engage in traditional securities lending activities as well.

  • Alpha PLUS is a collateral substitution process which is no different than substitutions that routinely happen in traditional repo arrangements without triggering accounting events except upon a liquidity event.

  • Alpha PLUS is void of counterparty default risk.

  • Alpha PLUS does not cause Beneficial Owners to incur the market risk inherent in traditional securities lending.

  • Alpha PLUS does not require the Beneficial Owner to take on additional leverage.

  • Alpha PLUS does not interfere with the “investment discretion” of Beneficial Owners.

  • When engaging in the Alpha PLUS process, Beneficial Owners: Capture yield enhancement. No investment is required. Your investment strategy is unchanged. You are not subject to cash collateral reinvestment risk or counterparty default risk.  And you continue to have the ability to trade specials.

WAYS TO USE U.S. TREASURY ALPHA PLUS

U.S. Treasury Alpha PLUS for Cash Managers

U.S. Treasury Alpha PLUS for Beneficial Owners of U.S. Treasuries 

Launch Your Own Fund with U.S. Treasury Alpha PLUS

U.S. Treasury Alpha PLUS Performs as Expected

According to Fund Administrator, Atlantic Fund Services, during the period May 1, 2018 through October 31, 2018, the “Alpha PLUS” process” added 38.4 basis points of annualized yield to the U.S. Treasury holdings of an SEC Rule 2a-7 U.S. Treasury Money Market Fund and 28.5 basis points of annualized yield to the entire fund.

MMF Performance Improves with use of U.S. Treasury Alpha PLUS (May 2018 - October 2018)

Source:  Atlantic Fund Services

 

The above performance results have proved the U.S. Treasury Alpha PLUS process works and should become a major tool for all Beneficial Owners of U.S. Treasuries (not just Money Market Funds).  Any Beneficial Owner of U.S. Treasuries who agrees to be indifferent to a few days of maturity differential can look to add additional performance to their portfolio(s). There are multitudes of applications to the Alpha PLUS process and all can be achieved:

  • Without, any additional investment.

  • Without, altering your investment philosophy.

  • Without, adding any additional leverage.

  • Without, any counterparty risk.

  • Without, decreasing liquidity.

  • Without, decreasing safety.

  • Without, introducing any additional work for Portfolio Managers.

For additional information please contact Lew Goldman at lgoldman@goldmanlandowcapital.com or call 516-223-3932

 
 

Launch Your Own Fund 

with U.S. Treasury Alpha PLUS

You are responsible for managing the day to day liquidity positions for your firm.  Your cash is either swept into your custodians sweep account, or you choose which money market fund to place your excess cash into.  In either option above you are paying fees.  Let’s suppose you are a credit card company, an insurance company, an airline company, a tech firm, an auto manufacture, a family of ETF's, or an equity money manager just to name a few.   You are currently sweeping tens of millions of dollars and in some cases hundreds of millions of dollars into these vehicles.  Did it ever occur to you to launch your own fund with a sub advisor handling the day to day management of the fund?  Have you ever considered how much in fees you would save?  Now you can, and with guidance from Goldman Landow Capital and its preferred sub advisor you can easily establish your own fund for you to use as well as your customers. 

 

To learn more, please contact Lew Goldman at lgoldman@goldmanlandowcapital.com or at 516-223-3932

U.S. Treasury Alpha PLUS

for Beneficial Owners of U.S. Treasuries

Beneficial Owners of U.S. Treasuries who would like to take advantage of the U.S. Treasury Alpha PLUS process can either invest in an Alpha PLUS fund, instruct their agent lender to use the process, give instructions to their custodian to engage in the substitution process (bypassing the agent lender and their fees), or establish a Separate Managed Account (SMA) in your name, at your custodian, with a money manager who will use the U.S. Treasury Alpha PLUS process.

In all of the above mentioned methods, Beneficial Owners will:

  • Optimize your U.S. Treasury holdings

  • Generate additional yield on your portfolio

  • Preserve principal

  • Reduce risk

Beneficial Owners will also:

  • Enable 100% of your U.S. Treasury positions under 4 years to participate in the Alpha PLUS process

  • Leave your current portfolio strategy intact

  • Be void of cash collateral reinvestment risk, additional leverage, additional market risk, and counterparty default risk

  • Have no need to make any new investment

  • Expect to capture yield enhancement on a portfolio of off the run Treasury securities which typically don't trade special

To learn more, please contact Lew Goldman at lgoldman@goldmanlandowcapital.com or call 516-223-3932