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J.G. Wentworth Blog

High Finance

Hi everyone. J.G. Wentworth here.

You may have seen or read a news item recently about a bond sale here at the company. It’s true. We did just sell over $100 million of bonds to institutional investors. And while I am not going to go into all the complexities of the bond offering, I do want to point out why such sales are important.

Basically, after we have purchased a lot of structured settlement payment streams from many different customers, we repackage them as bonds and sell them. By doing this we are connecting structured settlements to bond buyers around the world. This is a competitive market place where investors compete to buy these bonds. Competition lowers the rate on the bonds, which in turn, enables us to lower the discount rate we offer customers for their payments. The lower the discount rate the more cash we can advance a client for their payments.

So the fact that we are able to go to Wall Street is a very good thing. It’s one of the factors that allows us to offer our customers low rates and gives us a significant advantage over smaller companies that cannot.

Just thought you all would like to know.