SECURITIZATION is now available to people and projects which so far did not have access to this ingenious method to get in funds on financial markets. We open this strategy for people with a basic knowledge of the financial markets and a great investment idea, for projects that seek funding, or companies seeking access to additional funds without the need of exposing themselves, their strategy or their assets to the general public. The strategy is very similar to what large companies do, when “going public” – to access funds through the sale of shares on the stock exchange. You may call SECURITIZATION the “low cost little brother” of going public without the negative sides.
There are many similarities in the fundamental idea. This highly regulated environment is available only to acceptable professional players obeying the rules of regulated financial markets. Structured notes based on qualified debt or equity concepts evidence an instant and globally established Net Asset Value. Therefore securities are acceptable as loan collateral or a financial instrument for investment. Key and access to ready funds on the secondary market and its enormous funding potential is this professionally structured security product.
The basic principle of SECURITIZATION is to escalate assets from a client’s daily business and place them into an independent controlled Special Purpose Vehicle regulated by FINMA and other financial authorities like the SEC, independently controlled and run by elite professionals, authorized service providers, lawyers, accountants and trustees.
In both offerings and funding scenarios, participation in the actual strategy, project or company is through a professionally structured financial product. In “going public” the offered financial products are shares sold to the public – in SECURITIZATION, tranches of the security that is created can be pledged to banks or lenders to collateralize loans or are offered to qualified investors to participate in the growth or income stream of the funded concept, company or project. This can be instantly after the security is life and is quoted with a daily NAV value (Net Asset Value) and listed on Bloomberg.
Since the market is highly regulated to avoid issues like “insider trading” to happen (all our entities involved in structuring a security cannot get involved in its marketing), SECURITIZATION offers the required safety level for banks, lenders and investors when investing in a security. FINMA regulated broker dealers created platforms for secondary market private placement of securities which take on the 60 or so public Stock Exchanges on the primary market. They created a much bigger secondary market in which a much higher volume is traded through private placement. These are little known facts, but based on figures and results. A broker-dealer firm buys and sells securities for clients and for itself. An independent broker-dealer sells products from outside sources and that could be your security offering.
In this regulated financial market, institutional investors, banks, hedge funds, family offices, insurance companies and other corporates are ready buyers into investments via private placement through securitized transactions. They invest in Securities. See further details about marketing securities HERE