“One problem was that we could issue only thirty-year securities. In the capital markets, there are a limited number of investors with thirty-year money. There are fewer investors looking for thirty year securities than for ten-year or two-year securities… ”
~Lewis Rainieri
We bring “big bank” technology to the small and mid-sized banks and financial institutions.
For decades the largest banks in the US have used securitization, derivatives and bankruptcy remote structures to optimize their balance sheets. All financial institutions can benefit from these techniques.
Residential Mortgages
DXM provides an innovative solution to disaggregate and redistribute mortgage credit, prepayment and interest rate risks in a bespoke manner. A myriad of options are available.
Banks can sell a first loss and increase their return on equity from portfolios of residential mortgages.
Securitization structures can be used to create customized assets with maturities at any point along the yield curve tailored to investor needs.
DMX helps attract new pools of liquidity from shorter duration investors into an increasingly liquidity constrained mortgage market.
Commercial Loans
DXM provides creative balance sheet optimization solutions to manage risk, regulatory capital, concentration, funding and exposure. We employ securitization, derivatives and off-balance sheet vehicles that fit cleanly into the regulatory framework and have been proven over time.
Each solution is customized to our client’s specific needs and objectives.
We list banks, credit unions and other financial institutions as our clients. Our extensive capital markets relationships and experience help us execute transactions efficiently.
How We Do It
Boutique Investment Banks
Provide a complementary tool to increase profitability of existing securitization transactions by expanding the investor base.
Enable the opportunity to act as a riskless principal intermediary (i.e. “best efforts”) in securitization transactions.
Regional Banks
Securitization strategies to increase income and risk-adjusted ROE that qualify for cashflow hedge accounting.
Create basis risk free prepayment hedges without the need to forecast prepayments.
Balance sheet optimization under BASEL 3.
Credit Unions
There are over 4,500 federally insured credit unions in the US (per NCUA 2Q25) of which over 700 are complex with assets greater than 500mm. As credit unions become more acquisitive and portfolios become more complex, DXM solutions can be applied to specific situations to provide relief and reduce risk.
Insurance Companies
Create favorable investment options to increase income while lowering risk.
Strategies to monetize Federal Home Loan Bank (FHLB) membership through leveraged investments in uncapped floating rate securities, not available in today’s market.
Other Fixed Income Investors
Create mortgage backed instruments with any maturity from 30 days to 30 years and customized levels of:
Credit risk
Interest rate risk
Prepayment risk
Leverage
We work closely with regional banks, credit unions, boutique investment banks, insurance companies, credit funds, hedge funds, issuers, owner/operators and service providers including leading law firms and top accounting firms. Click on the link below to learn more about our process and partners.
Trusted by top experts in
public and private sectors
Conducted extensive legal analysis and developed comprehensive framework for implementation. Execution framework fully compliant with Dodd-Frank, ERISA, CFTC, BASEL 3, SEC. etc.
– Major DC Law Firm
Concluded that DXM solved a 40 year old problem to efficiently split interest rate, credit and funding risks from residential fixed rate mortgages. Specifically, DXM enables, for the first time, 30 year fixed rate MBS to be transformed into mortgage instruments with maturities at all points along the yield curve.
– Former Head of Capital Markets
Agreed that cash flows of DXM Mortgage Swaps provide a perfect offset to the cash flows of the underlying mortgage instrument. Thus, transactions uniquely qualify for hedge accounting.
– Big 4 Accounting Firm
