The headline seems a bit inaccurate. It stipulates that the bond will be accepted as long as Trump’s collateral for the bond – $175M held in an account with Charles Schwab – is not invested in securities. So as long as it sits there liquid. Essentially it makes all the wishy washy language in the deal and the debate about the bond issuer’s cash on hand kind of moot and almost as if Trump had put up $175M in escrow.
The headline seems a bit inaccurate. It stipulates that the bond will be accepted as long as Trump’s collateral for the bond – $175M held in an account with Charles Schwab – is not invested in securities. So as long as it sits there liquid. Essentially it makes all the wishy washy language in the deal and the debate about the bond issuer’s cash on hand kind of moot and almost as if Trump had put up $175M in escrow.
Seems like cash in escrow is how bonds should work.