Using an artificial intelligence platform on top of current Wall St. infrastructure, DXM enables:
- The creation of uncapped floating rate tranches (with risk reduction unavailable today)
- The acquisition of interest rate and prepayment risk in swap format (with no risk of principal loss from mortgage defaults and above market risk adjusted ROE)
- The transfer of prepayment risk on whole loans, MBS etc. even without securitization
These innovations for mortgage-backed instruments enable customization at any level of risk or maturity
Using an advanced technology platform on top of current Wall St. infrastructure, DXM enables:
The creation of uncapped floating rate tranches (with risk reduction characteristics unavailable in today’s market).
The acquisition of interest rate and prepayment risk in swap format (with no risk of principal loss from mortgage defaults and above market risk adjusted ROE).
The transfer of prepayment risk on whole loans, MBS etc. even without securitization.
These innovations for mortgage-backed instruments enable customization at any level of risk or maturity.
Uses enhanced interest rate swap to uniquely split funding component, interest rate, prepayment, and credit risk from any mortgage instrument.
Multiple transformative applications that address complex balance sheet and risk adjusted return problems for commercial banks, asset managers, mutual funds and the FED.
Generates strategies that are in full compliance with Dodd-Frank, ERISA, BASEL 3, CFTC, SEC and FASB hedge accounting.
Minimizes Risk and Cost
DXM enables securitization auctions among mortgage originators and investors, without any sponsor execution risk. Sponsors act as riskless principal intermediaries without additional investment or balance sheet risk. They conduct an auction for:
The auction process can easily match floating rate buyers with swap counterparties. The sponsor can also sell a portion of the senior tranche through this process. If no match occurs, no transactions are executed. Execution fees are paid by the participants in the auction and not the securitization sponsor.
