Financial Products
ING Financial Products (FP), a strategic business unit within the ING family of companies, offers a wide range of traditional and alternative financial products that provide principal preservation to institutional buyers such as pension plans, financial institutions, and municipalities.
FP has been a strong player in traditional stable value markets. Recognized by its markets for product innovation and technical capabilities, the team takes a consultative approach with clients. FP provides both traditional and alternative structures to create customized solutions to meet clients’ varied needs. With assets of approximately $12.9 billion as of 6/30/2009, FP issues traditional contracts primarily through two of ING America Insurance Holdings Inc.’s insurance carriers – Security Life of Denver Insurance Company and ING USA Annuity & Life Insurance Co. Both have claims paying ability A+/A1 and short term debt ratings A-1/P-1 by S&P and Moody’s respectively. For alternative structures, additional carriers may also be available through the vast ING worldwide network.
Traditional Markets
Principal preservation offered in a more traditional stable value form includes products such as guaranteed investment contracts (GICs) for pension plans, and funding agreements (FAs) for clients such as money market fund managers (2a7), banks, municipalities, or corporate cash managers. For each product, FP offers a wide array of structures that can be tailored to fit the clients’ needs. Whether a strategy calls for enhanced yield, unique cash flows, or a different structuring option such as a separate account or trust, FP will work with its clients to create an optimal approach.
Capital and Investment Products
Leveraging on FP’s ability to provide customized principal preservation options, product ideas are generated, tailored for specific clients or offered as alternatives to FP’s client base as a whole. Through ongoing dialogue with clients and constant monitoring of the capital and derivative markets, FP strives to find trade ideas that follow market trends and are timely to client needs. Within its current markets, many clients are not able to access the capital markets directly or efficiently and so FP provides structures to help fill this role. For example, FP has offered products similar to the following:
- GICs linked to indices (fed funds, CMT, etc.) that provide better hedges or matching in client portfolios to help clients exceed their performance hurdles
- Products with enhancements such as caps and floors, extendibles, floating-to-fixed, callable, yield curve or interest rate volatility strategies
- Payoffs and deposits linked to equity returns that better match the cash flow needs of a client
Conclusion
ING Financial Products will work with you to understand your needs in order to find a win-win solution by leveraging its strong risk management, capital markets knowledge, and financial markets experience. The team at FP would be happy to discuss different terms and structures that could best fit your requirements.
Securities products, sponsored by ING Financial Products, are sold through ING Investment Management Services LLC, a member of ING Group. This product overview is not an offer for the purchase or sale of any instrument. The trade ideas discussed in this report may not be suitable for all customers and may not be available in all states. Customers must make their own decisions based on their specific investment objectives and financial position and after review by their own tax, legal and accounting advisors. The funding agreements described herein are not being offered in connection with any funding agreement or medium term notes registered by ING USA Annuity and Life Insurance Company with the Securities and Exchange Commission. © 2007 ING North America Insurance Corporation. All rights reserved. (09/30/2007)
