We believe that our portfolios represent the best possible
mix of high quality assets, financial staying power, and dynamic exposure to the better gold price environment that we expect.
Already successfully used in Europe and Canada, covered bonds allow banks to raise funds by issuing pools
of high quality assets as eligible collateral to investors, enabling these financial institutions to extend vital credit to businesses.
We get into some fixed income wonkery — Liquidity, supply, safety, demand, central bank purchases, and the
dearth of high quality assets all are part of our conversation.
Of course, when you are on the hook as the provider of a back - stop facility to a SIV, it is great to have the CMHC offering to purchase MBS as it allows you to shrink back your balance sheet and / or avoid distressed
sales of high quality assets.
· NewCo represents a geographically diversified
portfolio of high quality assets with leading market positions and provides a strong strategic fit across 4 strong growth platforms;
Exceptionally strong financial position, as measured by an absence of liabilities either on balance sheet or off balance sheet; the
presence of high quality assets such as surplus cash; and / or the presence of operations that generate unencumbered cash flows available to service the capitalization, e.g., money management firms.
Anadarko has
some of the highest quality assets in the U.S. onshore market, generating high returns on invested capital and holding a large inventory of undrilled locations.