Growing concentration of risk
Cost-effective hedging of default risk is becoming increasingly difficult as the single-name CDS market continues its decline. Credit investors now face record levels of default exposure and related capital costs – and that risk is further reducing liquidity in the cash bond market.
A risk-diffusing technology solution
Employing actuarial science, reinsurance protocols and proprietary distributed ledger technology, DelphX facilitates broad diffusion of default risk through its new securities. Covered Put Options™ (CPOs) provide secured protection against loss from the default of its underlying security (more than 6 million credit issues are currently eligible for CPO protection). Covered Reference Notes™ (CRNs) pay enhanced yields to holders willing to assume certain default risks, particularly if the holder elects to optionally pool its risk with other holders.