Through Alloya, you have access to convenient, dependable settlement and safekeeping of your marketable securities. Virtually any marketable security is eligible for the program. Your securities are accepted and delivered based on your instructions, and you receive confirmations of your transactions. Key features of the program include:
Alloya settles transactions on a delivery-versus-payment (DVP) basis to your Hi-Yield account. DVP provides for simultaneous transfer of cash and the security. As a result, many of the risks inherent in the movement of investment securities are reduced or eliminated.
Detailed monthly statements provide you with an accurate inventory of your securities held and a complete accounting of your securities activity. This same information is available through EDGE On-line.
Securities Safekeeping at Alloya is a “third-party” service. Securities are safekept at (delivered to) U.S. Bank. By safekeeping securities outside of the broker/dealer that they were purchased from, you eliminate potential concerns of the broker/dealer using your securities for unintended purposes. This third party service extends to securities purchased through Balance Sheet Solutions, LLC’s relationship with CU Investment Solutions, LLC (ISI).
The Safekeeping Agreement states that Alloya cannot pledge, assign, sell or use your securities for any purpose without your specific authorization. Additionally, Alloya cannot commingle your securities with those of its own portfolio or others.
Principal and interest payments (along with proceeds from sales/maturities) are automatically collected for you and deposited into your Hi-Yield account.
Alloya submits called and matured securities for redemption to ensure the timely return of principal and interest on your investment. Market valuations and current par values on mortgage-backed securities are provided on a monthly basis.
Members that safekeep securities through Alloya may use their securities as collateral for borrowing.