Industry context and how DXM fits
Unlike other major capital markets, the multi-trillion dollar residential mortgage securitization markets have lagged in their deployment of innovative technologies and, hence, efficiency. Certain of these securitization markets continue to use trading practices often based on government regulated/subsidized pricing and legacy dealer risk allocation techniques.
Standard residential mortgages generally have interest rate, prepayment and credit risks for a fixed maturity of 30 years. Currently these risks and maturity cannot be split on an efficient basis. This creates inefficient risk allocation and use of capital by banks, thus limiting profit, mortgage availability and market liquidity.
TBD
TBD
Technology
Uses enhanced interest rate swap to uniquely split funding component, interest rate, prepayment, and credit risk from any mortgage instrument
Applications
Multiple transformative applications that address complex balance sheet and risk adjusted return problems for commercial banks, asset managers, mutual funds and mortgage originators
Legal, Accounting and Regulatory Framework
Generates strategies that are in full compliance with Dodd-Frank, ERISA, BASEL 3, CFTC, SEC and FASB hedge accounting
Technology
Uses enhanced interest rate swap to uniquely split funding component, interest rate, prepayment, and credit risk from any mortgage instrument
Applications
Multiple transformative applications that address complex balance sheet and risk adjusted return problems for commercial banks, asset managers, mutual funds and mortgage originators
Legal, Accounting and Regulatory Framework
Generates strategies that are in full compliance with Dodd-Frank, ERISA, BASEL 3, CFTC, SEC and FASB hedge accounting
TRUSTED BY INDUSTRY EXPERTS
Major DC Law Firm
Conducted extensive legal analysis and developed comprehensive framework for implementation. Execution framework fully compliant with Dodd-Frank, ERISA, CFTC, BASEL 3, SEC. etc.
Tier 1 Investment Bank Head of Capital Markets
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.
Big 4 Accounting Firm
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.
© Copyright 2023. DEV Capital Ventures, LLC