Reasons to buy Baron Bond NCUA DAFI™ Strategy
100% Principal Protection
for qualified investors through the accrual of an Aa1/AA+ NCUA (United States National Credit Union Administration) FDIC insured collateralization.
Tailor-structure
of credit quality, maturities and cashflow streams for your unique requirements. Tell us what you need, and we will put some of our best and brightest on Wall Street to work structuring for you. A 10-year tenor is what you need and a Aa1 credit, no problem, remember, 5 to 35-year bespoke maturities are possible, too.
For a 10-year tenor indicative?
Baron Bond NCUA DAFI™ Strategy could be structured to maintain a fixed [1.00]%(1) per annum, Annual Coupon in a ring-fenced Aa1/AA+ NCUA insured Certificate of Deposits (CDs) collateralization with 100% of the face value of the principal paid at maturity, secured at the Moody’s Aa2/P-1, S&P AA-/A-1+, Fitch AA/F1+ Custodian.
Superior enhanced yield
structured with risk mitigation. Baron Bond NCUA DAFI™ Strategy match your plan or financial product arbitrage requirements [currently targeted in the 5.99 to 6.99 range]%(1) per annum Maturity Coupon paid as a bullet at maturity.
Global Custodian held assets
A global custodian rated Moody’s Aa2/P-1, S&P AA-/A-1+, Fitch AA/F1+ always holds the assets of the Baron Bond NCUA DAFI™ Strategy. Baron Bonds maintain a First Priority Security Interest, secured at a Custodian rated one-notch below the U.S. Treasury.
Bankruptcy Remote
All costs of maintaining the SPV until legal maturity are paid forward with escrow or via a return stream guaranteed by a Bank rated Global A2/A+/A Moody’s/Fitch/S&P, or better.
Liquidity
A margin loan can be arranged for rapid liquidity, or the Baron Bond NCUA DAFI™ Strategy can be Repoed via Euroclear or Clearstream or at the U.S. Federal Reserve Discount Window.
Ring-fenced Maturity Coupon
Diversified Algorithmic Fixed Income Alternative™ Strategy
DAFI™ Asset Allocation
as of 9/30/25
Exposure
Secular long only U.S. Treasury, Stock, and Gold positions with cyclical commodity long/short components that hedge and produce stable return enhancement, in a Aa1/AA+ Collateralization for the Principal Protection and the Annual Coupon—cashflows guaranteed for the life of the Note.
Overview of NCUA Repack Transaction Flow and Structure
Baron Bond NCUA Use Case
- Aa1 U.S. Federally Insured Collateralization
- Match Long-Dated Maturities versus Liabilities
- Grow book of product and plan participants
Overview of NCUA Repack Capital Allocation
ENHANCED RETURN STREAM STATISTICS
(01/01/2004 – 09/30/2025)
NCUA DAFI™ Strategy(1)
Annual Coupon, plus Maturity Coupon paid as a bullet at maturity
[currently targeted in the 6.99 to 7.99 range]%
Standard Deviation (Annualized)
8.73%
Gain Deviation (Annualized)
2.11%
Loss Deviation (Annualized)
1.51%
Indicative Term Sheet(1)
Overview
The Issuer will apply the net proceeds of the issuance of the Notes to (i) purchase an obligation of the U.S. National Credit Union Administration (NCUA), Federally Insured paper, Globally Rated Moody’s Aa1, S&P AA+, Fitch AA+ (the “NCUA Note”) which funds the full (100%) return of capital and the fixed [1.00] per cent per annum coupon paid out annually under the Notes (the “Annual Coupon”); and (ii) obtain exposure to a yield enhancement fixed coupon security equal [currently targeted in the 5.99 to 6.99 range] per cent per annum, paid out as a bullet payment on the Maturity Date (the “Maturity Coupon”)
Issuer
A Segregated Portfolio of a Cayman Island segregated portfolio company registered with the Cayman Island Monetary Authority (CIMA), other jurisdictions for a feeder SPV to be discussed
Amount
- US$ 250 million shelf registration
- US$ 50 million first subscriber
Tenor
10-year (5 – 25-year Bespoke maturities TBD)
Issuance Currency
United States Dollars (“USD” or “US$”)
Liquidity
Collateralized security exchangeable for cash
Principal and Maturity Coupon Payment
Bullet at Maturity. Annual Coupon paid out p.a.
Structure
Bankruptcy Remote SP is the issuer of the Global Depositary Notes (GDNs)
Reporting
Quarterly NAV (another periodicity TBD)
Expected Rating
Moody’s Aa1 (p) global credit rating (See Moody’s NCUF structure credit opinion memo available on request)
Calculation Agent
Global Bank (A2/A+/A Moody’s/Fitch/ S&P)
Custodian
The Northern Trust Company (Moody’s Aa2/P-1, S&P AA-/A-1+, Fitch AA/F1+)
Administrator
SS&C Technologies LLC
AML/KYC Diligence
Walkers Corporate Limited
Legal Counsels
White & Case as to United States federal law; Loeb Smith as to Cayman law matters; Kinstellar Southeast Asia as to emerging markets jurisdictional law
Tax and Fiduciary
KPMG
Auditor
Ernst & Young
Investor Type
United States Securities and Exchange Commission (“SEC”) Rule 144 / Regulation S Qualified Institutional Buyers only (“QIB” or similar in international jurisdictions)
(1) Disclaimer: Pricing subject to final pricing, negotiation, terms and conditions as well as KYC and on-boarding. Any information contained herein is information owned by Baron Point Capital Management Ltd. (“Baron Point”), or its affiliates. Any references to any other third parties are not a representation of those parties’ ability or willingness to transact. This information should be reviewed and evaluated only in conjunction with the Offering Memorandum and/or any Supplement for any security being discussed. Any use, reproduction, dissemination, or disclosure of the information contained herein is strictly prohibited. Any presentation of any information transmitted on the web site is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not necessarily indicative of future results and there can be no assurance that any security discussed by Baron Point will achieve comparable results. There is no representation by Baron Point that any examples of past investment activities or targets contained herein will be repeated on behalf of any or that, if they are, they will be successful. Investing in securities can be risky. In non-principal protected notes, an investor’s asset value may go up or down if not held to maturity. Baron Point offers no advice as to tax or regulatory implications. All investors should consult their own financial, legal, compliance, and tax advisors prior to investing.