“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… ”
We solve a structural problem that impacts the mortgage markets.
- DXM is an innovative solution to disaggregate and redistribute mortgage credit, prepayment and interest rate risks in a bespoke manner.
- Banks can increase their risk-adjusted return on equity from residential mortgages.
- Investors can create customized assets with maturities at any point along the yield curve.
- DMX helps attract new pools of liquidity from shorter duration investors into an increasingly liquidity constrained mortgage market.
How We Do It
Using advanced technology, we enable the splitting of all risks (interest rate, prepayment and credit) and funding from any fixed rate residential mortgage. This is achieved by enhancing standard interest rate swaps (“Mortgage Swaps”) employed in securitizations.
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.
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.
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:
Interest rate risk
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
George D. Crowley, Jr.
Chairman & CEO
Founder/CEO of The Crowley Group and controlling shareholder of DXM
AB Georgetown University; JD Georgetown University Law Center
Chief Technology Officer
Inventor of DXM technology
AB University of Maryland and Masters Operations Research NYU
Ambuj “AJ” Jain
Partner & COO
Leadership experience in insurance industry
B.Com Allahabad University, M.Com Delhi School of Economics, MBA and Ph.D. from SUNY-Buffalo