Receivables Protection Puts offer distinct benefits over traditional credit insurance:

• written on specific credits vs. a requirement for protection on a full portfolio of receivables, thereby allowing clients to only pay for the protection they need
• available on bankrupt as well as stressed credits
• require minimal documentation
• no deductible
• highly customizable

Benefits Relative to CDS

• are available on a broad universe of credits vs. limited public names
• protect the actual receivables vs. potentially mismatched bonds resulting in residual unprotected credit exposure (“basis risk”)
• relieve the client of the receivables upon trigger vs. ongoing unprotected exposure post insolvency
• do not require pre-established counterparty master agreements to be in place
• do not necessarily introduce the accounting complexities of CDS
• can be customized to any specific date
• recovery amounts are pre-determined through contract vs. variable recovery based on market trading levels and to adverse market technical settlements
• can protect receivables from subsidiary entities vs. only bond issuing entities