The report uses James' Place's SROI report.

The Liverpool suicide prevention initiative

Questions

$1.$ On an investment bank advisory team designing social impact bonds. According to the attached report, the team is building the connection on James' Place Liverpool's suicide prevention project. The bank informed the team that the same organizations would manage the program's operations as outlined in the report, but the UK government and appropriate regional government bodies may commission the bond. A report is required to propose a comprehensive strategy for the Social Impact Bond $($SIB$)$ to bank management as the first stage in its development. Clear, management language for report.

Sections of the report should discuss:

$($a$)$ A description of the program's 'theory of change' that supports its actions. The report provides some theory of change information, but bank managers demand a convincing account of how inputs affect outputs, results, and societal effect;

$($b$)$ The indicators used to assess inputs, activities, and outputs linked to the goals specified $($the report should also address attribution, deadweight, displacement, and drop$-$off if appropriate$)$;

$($c$)$ How the initiative will be monetised based on the selected outputs and presented as positive cash flow to the UK government. Include cashable and non$-$cashable apprenticeship course outcomes here, but explain which will be monetised and defend the decisions;

$($d$)$ Bond structure, including performance criteria to meet to trigger investor payments, rates and timing of payments, and how the structure incentivizes stakeholders. How to resolve and detect possible issues throughout project stages;

$($f$)$ Bond risks. Include risks to all stakeholders, not just the investment bank.

$2.$ Rhoda, the investment bank's Chief Operations Officer, discussed making the SIB marketable on a secondary market after the team submitted the report. Rhoda wants to know whether SIB bonds may be traded. Rhoda suggested rethinking current design decisions to make the SIB more appealing in secondary markets. What adjustments would be needed and how would they impact liquidity? Such a market has two main options, Rhoda said. It might be exchanged in a socially connected face$-$to$-$face exchange or an automated order book exchange. Rhoda wondered which SIB trading option was best. Write Rhoda's report and address her concerns.

$3.$ A week following the report, bank investor relations head Belinda emailed. Belinda worried in the email that securities analysts may not grasp the social impact bond since it is innovative and not readily compared to other tradable financial instruments. Belinda wants to write a report comparing the Social Impact Bond $($SIB$)$ to other assets we studied during the module, comparing risks and returns and explaining which investors are likely to be attracted to each asset and why. Importantly, the report should draw inferences from the comparison and suggest strategies to encourage securities analysts to cover the bond.