In the aftermath of the financial crisis, banks have lost their position as the sole dominant institutions in the securitisation arena. As early as 2009, Prime Capital started offering bankruptcy-remote alternative issuance platforms for institutional investors that reduce the risks of securitisation.
One of the commonest forms of indirect investment by institutional investors is the use of securitisation. While this can take many forms, it generally involves the investor acquiring a debt capital instrument issued by a third party. The debt capital instrument offers the investor the same returns profile as direct investment in the respective asset.
Banks have traditionally dominated the securitisation business, but the financial crisis highlighted the challenges faced by these players. This led to demand for alternative issuance options. Key priorities were the avoidance of bank credit risk and having protection against insolvency.
Prime Capital’s alternatives to bank issuance
Prime Capital responded to this development by setting up its first Multi-Issuance Note Programme at the start of 2009 under the umbrella of a regulated securitisation company: PCAM Issuance S.A. Two further platforms have been added in the meantime. All of them offer the option of securitising virtually any asset class, using a range of methods and working with a number of different service providers.
A wide range of securitisation options
Securitisation is now a well-established delivery method for a number of asset classes where specific regulatory or tax-related outcomes and/or a specific outcome under commercial law are required. Prime Capital benefits from the experience gained as a market-leading independent issuer across various jurisdictions, investor types (regulated, tax exempt, family offices, etc.) and underlying asset types (e.g. hedge funds, debt managers, aircraft finance, infrastructure debt, private equity and commercial real estate). Together with its other skills and capabilities, Prime Capital is and remains a leader in the field of issuance technologies and their diverse applications.for