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

Knight Specialty Insurance has recently announced that they have agreed to underwrite a $175 million bond for former President Donald Trump in New York. The deal happened quickly, with all cash being posted as collateral. Knight Specialty Insurance is known for providing subprime auto loans to car buyers with weaker credit scores.

The deal was the result of Trump’s difficulty in putting together a $464 million bond, and it was eventually reduced to $175 million by a New York appeals court. Hankey, who has supported Trump’s presidential campaigns in the past, reached out to the Trump Organization last month seeking assistance.

Although initially, Trump planned to post a mix of investment-grade bonds and cash as collateral, he eventually decided to put up all cash. Knight Specialty Insurance approved the bonds but they were not posted in the end. 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. While Hankey has not been contacted directly by the president, 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.

By Sophia Gonzalez

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