CAT Financial Products (CATFP) is a Swiss providers for investment solutions in the structured products market.
Now, the company claims to be the first bank-independent financial services provider in Switzerland to offer its own issuing platform via special purpose vehicles (SPVs).
In addition to the existing services, this allows clients of CATFP to securitise their own tailor-made products at very low prices without an investment bank and controlled counterparty risks. The customer feedback is overwhelming.
CATFP says that they are the first financial services provider in Switzerland to offer its customers their own issuing platform. Allowing all kinds of financial products to be securitised quickly, cost-effectively, without an investment bank involved and with controlled counterparty risk.
The platform is based on balance sheet-neutral special purpose vehicles (SPVs) and covers the entire value chain, from advice, structuring, securitization and daily valuation to booking into the client’s bank account.
The daily secondary market, the ease of setup, the maximum security and the ability to freely choose all parties involved, provide a new form of flexibility in this business. In addition to the structuring of classic structured products such as tracker certificates, AMCs, credit linked notes and capital protected products, the securitisation of non-bankable assets such as crypto currencies, real estate or art is also possible.
Successful launch of first projects
Most recently, exciting projects in the real estate and lending business were securitized (including deposited collateral).
Giuliano Glocker, CEO of CATP:
„The platform is a complete success. It allows us to quickly, easily and cost-effectively carry out securitisations that previously were not possible in this way. Within a short time, new customers were able to convince themselves of the platform and implement their first projects – the customer feedback is overwhelming.“
The platform is thus to be understood as complementary to the core business. It expands the range of services within the core area, while the new products and customers complement the existing business.
The new SPV solution separates the traditional issuer from the custodian bank and order processing and also appeals to asset managers and managers who want to securitize their strategies in new investment vehicles. But also lawyers and trustees belong with their clientele to the new customer group.
Furthermore, the SPV solution integrates well with CATFP’s growth and cooperation plans. Thanks to the flexible interchangeability of the custodian bank, the settlement and jurisdiction of the SPVs, even new markets such as Asia, the Middle East or South America can be easily reached. In the area of application there are almost no limits.
The technology is open to all market participants
The SPV platform offered by CATFP to its customers as a complete solution is provided by the Swiss FinTech startup GenTwo Financial Products. Working in partnership, GenTwo takes care of setting up the SPVs and the term sheet, while CATFP mainly structures the products and connects them with their own life cycle management tool. For customers who want their own SPV, the entire process can be outsourced to GenTwo.
In addition to the high flexibility, transparency and price advantages, long-term market risks are also reduced. Instead of aggregating the risks in the bank balance sheets as they have done so far, they are now distributing themselves on safe, transparent SPVs covered only financially by the product components.
Also to family offices, private banks and private asset managers, the solution is particularly suitable for banks and securities dealers who want to offer their customers significantly more flexible and cheaper products while avoiding additional risks as well as covering the entire value chain themselves.