Monetization of Standby Letter Of Credit, (SBLC) or Bank Guarantee, (BG).
There are two financial factors in monetizing these instruments,-e.g. Equity Recourse or Non-Recourse.
The larger financial institutions such Deutsche Bank, Barclays, Bank of China etc. May not require a correspondence or confirming bank to guarantee their
instruments due to their high net worth.
The offshore issuers such as Soliel Charter Bank, Suisse Credit Capital etc., does require correspondence and confirming bank guarantees. The portfolio risk does make a difference in the "Loan To Value" in monetizing their instrument.
So, I recommend, prior to leasing or purchasing any instruments,-i.e. research the liquidity and Regulatory Authority of the issuer.
STANDBY LETTER OF CREDIT/BANK GUARANTEE
26250 Industrial Blvd # 16 Hayward, CA 94645 1-866-594-7878
RG PORTFOLIO BUSINESS CONSULTANTS