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What assets can you securitize?

Authored by FlexFunds
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What assets can you securitize?

Knowing precisely what securitization is within the financial field and what assets can be subject to this process will allow portfolio managers or advisors to create complete and effective strategies to meet the needs and fulfill their clients’ objectives.

What is asset securitization?

Securitization is when a group of assets, liquid or illiquid, current or future, are converted into negotiable instruments and listed on the stock market to raise capital.

Once an investment strategy is launched through asset securitization, the transactions will backed by collateral such as cash flow or guarantees from an organization.

Which assets can you securitize?

One of the most attractive qualities of this financial procedure is that multiple asset classes can be securitized in an agile and efficient manner.

  • Equity. Firstly, it is possible to securitize shares, both public and private. This way, companies can access capital without needing to liquidate their positions or incur debt.
  • Bonds. Bonds, which are fixed-income securities, can also be securitized. In this case, the backing is in the future cash flows that will be distributed periodically.
  • Commodities. Commodities also can be the subject of the asset securitization process. Thus, gold, silver, oil, and soybeans, among others, can become securitized products.
  • Derivatives. Financial derivatives such as futures and options, which, in turn, have other underlying assets, are considered suitable for this procedure.
  • Foreign exchange. Currency pairs such as euro-dollar, pound-real, dollar-yuan, etc., also qualify as securitized assets, which helps their direct investment.
  • Investment funds. Investment funds and hedge funds managed by portfolio and hedge fund managers can be converted into securitized assets through the same procedure.
  • Real estate projects. Among the illiquid assets, that you can securitize industrial, residential, or commercial real estate projects. In these cases, rents are one of the primary sources of cash flow discounted to the present to determine the value of the securitized assets.
  • Loans and contracts. Contracts between parties and loans between legal entities are other assets that can be securitized through structuring companies such as FlexFunds.
  • Intellectual Property. Ultimately, intellectual property, despite being an intangible asset, can be securitized similarly to other assets. The economic flow will be all expected future royalties.

How to securitize assets with FlexFunds?

Fortunately, the asset securitization process with FlexFunds is simple. It can be done in just four steps:

Step 1: Initial Consultation

First, you should schedule a meeting to discuss your specific situation so that we can provide a solution tailored to your stated objectives and needs.

Step 2: securitized asset design (ETP)

Secondly, the portfolio manager defines the strategy and its terms and conditions. At FlexFunds, we ensure that the securitized asset (ETP) is structured according to the highest quality standards in the industry so that it is an efficient investment vehicle for investors.

Step 3: Onboarding process

After defining the investment strategy of your choice and signing the engagement letter, the onboarding process of the portfolio manager and the underlying company begins.

Step 4: issuance and listing

When the prospectus or memorandum is ready and reviewed by all the providers involved in the structure, the securitized asset (ETP) is issued, generating an ISIN/CUSIP code that facilitates the subscription of the ETP and access from brokerage accounts in international private banking.

Thus, thanks to FlexFunds’ solutions, you can access investment vehicles that securitize multiple asset classes: liquid, liquid, listed, and alternative.

Our differential strives to coordinate a securitization program quickly and efficiently, taking care of all phases of the process from end to end and providing a turnkey solution for our clients.

In addition, FlexFunds’ asset securitization program is backed by top-tier companies, including Bank of New York Mellon, Interactive Brokers, Intertrust, and Apex.

To learn more about our securitization solutions, do not hesitate to visit our FlexPortfolio section, where you will find all the information you need start using them.

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FlexDual Portfolio Details

Dual Custody: Securitizes a strategy with listed assets in a Bank of New York Mellon & Interactive Brokers accounts

Applications

  • Bankability: Global distribution of a strategy
  • Centralized managed account
  • Fund creation alternative
  • Custody of locally listed bonds
  • Design a mixed investment strategy of fixed income, equities, and derivatives

Advantages

  • Trading and custody platform with available leverage
  • Efficient subscription through Euroclear
  • Actively managed by a Portfolio Manager
  • No limitations on rebalancing or portfolio composition
  • Cost efficient
  • Flexibility in the choice of executing broker for underlying trades

FlexRegulated Portfolio Details

Securitizes a strategy with listed assets in an Interactive Brokers account targeting institutional and retail investors

Applications

  • Global distribution of a strategy
  • Centralized managed account
  • Regulated fund creation alternative

Advantages

  • Trading and custody platform with available leverage
  • European UCITs compliant
  • Market to institutional and retail investors
  • Actively managed by a Portfolio Manager
  • Market maker as part of the solution
  • Low value tickets
  • Cost efficient

FlexOpen Portfolio Details

Securitizes a strategy with listed assets in any custodian account

Applications

  • Global distribution of a strategy
  • Centralized managed account
  • Regulated fund creation alternative

Advantages

  • Manage portfolios from any major custodian
  • Introducing Broker Dealers maximize revenue from own trading fees structure
  • AUM remain on the introducer broker agreement
  • Efficient subscription through Euroclear
  • Actively managed by the Portfolio Manager
  • No limitations on rebalancing or portfolio composition
  • Cost efficient

FlexPortfolio Details

Securitizes a strategy with listed assets in a Bank of New York Mellon or Interactive Broker custodian account

Applications

  • Global distribution of a strategy
  • Centralized managed account
  • Fund creation alternative
  • Custody of locally listed bonds

Advantages

  • Efficient subscription through Euroclear
  • Actively managed by a Portfolio Manager
  • No limitations on rebalancing or portfolio composition
  • Cost efficient
  • Flexibility in the choice of executing broker for underlying trades
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Welcome to FlexFunds

We provide our services under the Global Note Programs through several entities that perform different activities. Among these entities are FlexFunds ETP LLC which acts as Calculation Agent, and FlexFunds Ltd, which acts as the Program Coordinator. Before making a decision to invest in the Global Note Programs, you should consider the following:

  1. Independent entities. FlexFunds ETP and FlexFunds Ltd. are not managers of the special purpose vehicles, collectively, responsible for the issuance of Notes under the Global Note Programs.
  2. Coordinated Activities. FlexFunds ETP and FlexFunds Ltd act as coordinators of the different entities participating in the Global Note Programs. However, each of the entities is responsible for its own duties and activities in the process.
  3. Not Broker-Dealer or Investment Adviser. Neither FlexFunds ETP nor FlexFunds Ltd. is a U.S. registered broker-dealer or an investment adviser registered with the U.S. Securities and Exchange Commission. Our entities do not raise capital for clients or the Issuers. We do not solicit any specific products, nor offer investment advice or make investment recommendations, nor do we offer tax, legal, financial advice or otherwise.

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