The company behind Trump’s $175 million bond deal shares insights into its creation

Trump Receives $175 Million Bond from Knight Specialty Insurance despite Cash Collateral Plan

Knight Specialty Insurance recently underwrote a $175 million bond for former President Donald Trump in New York, despite the initial plan to post a mix of investment-grade bonds and cash as collateral. Don Hankey, the chairman and majority shareholder of Knight Specialty Insurance, revealed this information to CNN. Hankey also mentioned that Trump put up all cash as collateral for the bond. Knight Specialty Insurance, based in California, is known for providing subprime auto loans to car buyers with weaker credit scores.

While Hankey has not been contacted directly by Trump, Eric Trump did reach out to thank him for the business. This recent deal is not the first time that Hankey and Trump’s businesses have been connected. In 2022, Axos Bank, a California lender where Hankey is a leading shareholder, loaned Trump $100 million to refinance the mortgage on Trump Tower. Despite their previous business dealings, Hankey and Knight Specialty Insurance continue to support Trump and his endeavors.

Hankey confirmed to CNN that he and his family have supported Trump’s presidential campaigns in the past and intend to do so again in 2024. The bond amount was reduced from $464 million by a New York appeals court before it was posted as collateral for the bond. While Knight Specialty approved the bonds, they were not posted in the end due to unspecified reasons.

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