Scarsdale Investment Group
The Unbeaten Path to Secure Investment Growth
Copyright © 2019 Scarsdale Investment Group Ltd. All Rights Reserved.
Scarsdale provides unique services to banks in buying Bank Qualified Bonds (BQ bonds). Scarsdale, as an independent RIA, provides sophisticated investor banks with eight unique advantages over traditional broker-dealers in identifying and buying BQ bonds:
Community Banks and
1. Place new issue pre-purchase orders: We can put in pre-purchase orders on most negotiated and competitive new issue deals that meet the bank’s specifications. This is unique because broker-dealers are restricted to purchasing bonds from the syndicate in which they are participating, when they bid on new issues. They then may mark up the price of the bonds when they resell them to you.
2. Purchase entire maturities in new bond deals. This enables the bank to have large block size to facilitate compliance audits.
3. Negotiate the coupon on new issues: For example, if the coupon on offer is 3%, the issuer might agree to change it to 4% and adjust the price.
4. Document the purchase for compliance purposes: We provide MuniPOINTS and the Offering Statement (OS), as well as rating agency reports.
5. Provide pricing transparency: We send out the new issue scales to document the terms and prices.
6. Negotiate price in the secondary market: We negotiate to get the best price for you.
7. You have control: We work only on a non-discretionary basis, giving you complete control over all transactions.
8. We are a fiduciary: We represent the bank and get paid directly by the bank, while the broker represents the brokerage house and is paid by the brokerage house. We receive no compensation from any issuer or broker-dealer.
We custody our client accounts and purchase bonds through National Financial Services, a subsidiary of Fidelity Investments. Through Fidelity’s prime brokerage facility, we are also able to purchase bonds away from Fidelity from our fifteen broker- dealer network and deliver them against payment into your account.
Through Scarsdale, we have purchased over $3 billion of bonds over the last 25 years that we have been in business and have not had any defaults - an excellent long-term record.
As a result of our writings about bonds, five books and over 100 articles, we are considered national experts on bonds and how to buy them. We believe that our knowledge enhances our bond buying ability. We believe that our expertise adds a great deal to the value of our service.