High Quality Capacity Providers
Karson only works with top tier, highly-rated financial institutions with an established name and brand in their respective market. To safeguard against rapid decline in capacity provider credit quality, all transactions include capacity provider replacement provisions based on agreed upon rating downgrade triggers.
The Karson Collateral structure has been designed to replace capacity providers given a downgrade below a pre-determined threshold.
The activities of the Master Trust are administered by BNY Mellon as trustee on an arms-length commercial basis in order to ensure no conflict of interest with any of the interested parties.
BNY Mellon is a leading global provider of trust services to the insurance market with well established infrastructure and policies to ensure that the Master Trust honors all contractual obligations.
In addition to its role as the Master Trust trustee, BNY Mellon will play the following other roles in the Karson Collateral program that impact the Cedant:
- Custodian for the Eligible Securities
- Collateral Manager and Tri-Party Agent (for screening and margining Eligible Securities)
- Collateral Agent (for exercising UPOs)
- Reinsurance Trust Trustee
- Issuing and Paying Agent for K-Notes
- Note Registrar