Knight Specialty Insurance, a California-based lender known for offering subprime auto loans to individuals with weaker credit scores, recently underwrote a $175 million bond for former President Donald Trump. The transaction was finalized quickly, with Trump providing all cash as collateral.
Hankey, the chairman and majority shareholder of Knight Specialty, spoke with CNN about the deal. He stated that he had supported Trump’s presidential campaigns in the past and reached out to the Trump Organization when they were struggling to put together a $464 million bond. After the New York appeals court lowered the bond amount to $175 million, Trump’s team approached Knight Specialty once again.
Initially planning to use a mix of investment-grade bonds and cash as collateral, Trump ultimately decided to provide all cash. Hankey confirmed that both he and his family have donated to Trump’s campaigns, with plans to support him in the 2024 election. While he has not heard from the president directly, Eric Trump reached out to thank him for the recent business dealings.
This isn’t the first time Hankey and Trump’s businesses have been connected. Axos Bank, another California lender where he is a leading shareholder, loaned Trump $100 million to refinance the mortgage on Trump Tower in 2022, a deal that Hankey was unaware of at the time.
