PPT Slide
1. Investors can create new assets with a specific maturity not currently available in the market.
2. Investors gain efficient off-balance sheet exposure to a desired asset class to which they otherwise would not have access.
3. Investors may achieve a higher leverage on capital – ideal for hedge funds. Otherwise, direct asset ownership is on on-balance sheet funded investment.
4. Investors can reduce administrative costs via an off-balance sheet purchase.
5. Investors can access entire asset classes by receiving the total return on an index.
Motivation of the receiver