Tradewind Trades Insurance Policies for Bank Assets

Thu Sep 8, 2011 12:15pm EDT

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Tradewind Trades Insurance Policies for Bank Assets

Tradewind Settlements, an Atlanta-based company supported by Phillips Capital, announced today that the company is in negotiations with several area banks to use its Life Insurance Financial Enhancement (LIFE) program for balance sheet enhancement. In a LIFE transaction, Tradewind Settlements pledges life settlement contracts as collateral for a new loan with prepaid interest while concurrently purchasing non-performing loans or assets from the bank. The LIFE program is an extension of Tradewind’s REAL program, which had previously been used by large property owners seeking to divest from deteriorating real estate positions.

“The LIFE model is a new concept that we’re all very excited about,” said Scott Phillips, Managing Director of Phillips Capital. “It offers banks a very attractive methodology for balance sheet improvement. We are purchasing non-performing loans at competitive prices while creating new performing loans that are fully collateralized with prepaid interest. Their portfolios are then diversified into an asset with no market correlation whatsoever. This expansion of our other programs into Life Insurance Financial Enhancement was the next logical step. Turning non-performing assets into performing ones through LIFE is a huge balance sheet boost at an important time in the financial markets.”

Investing in life settlements has been popular with bulge-bracket firms for years. The principals at Tradewind Settlements and Phillips Capital believe that the LIFE program will be attractive to small to medium-sized banks with many types of distressed assets.

“The LIFE program is truly a win-win for both parties,” Phillips said. “It allows us to expand our business with new, fully collateralized loans while providing banks with a creative exit strategy for their non-performing assets and stable, predictable returns going forward. We are excited about making this program available to the banking community, and I anticipate a huge market for this new offering.”

Tradewind Settlements, based in Atlanta, GA, offers a number of life settlement-based solutions for institutions and corporations seeking non-market correlated strategies. For more information, visit, or contact Tradewind Settlements at (404) 410-2620.

Tradewind Settlements
Michael Cortez, 404-410-2620
Vice President of Acquisitions

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