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CEC-X was formed to make good commercial real estate (CRE) loans better.
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CEC-X developed Credit Enhancement Contracts (CECs) as the first Basel III compliant credit protection solution for CRE finance.
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The CEC-X platform enables CRE lenders to utilize CECs to transfer the risk of quality CRE loans to institutional investors that profit from writing Eligible Guarantees in normal markets and workout CRE assets in distressed situations at conservative attachment points, or basis.
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The CEC-X platform acts as a sophisticated, online marketplace engine that sorts, ranks and presents individual CRE loans to targeted CEC Writers, according to proprietary algorithms, screens and profiles.
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CECs employ a similar structure to a European-style put option, but with unique interim default provisions written within a standardized contract.
​
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CECs are well suited for distressed markets, but effective in all market environments.
-
CEC-X was formed to make good commercial real estate (CRE) loans better.
​
-
CEC-X developed Credit Enhancement Contracts (CECs) as the first Basel III compliant credit protection solution for CRE finance.
​
-
The CEC-X platform enables CRE lenders to utilize CECs to transfer the risk of quality CRE loans to institutional investors that profit from writing Eligible Guarantees in normal markets and workout CRE assets in distressed situations at conservative attachment points, or basis.
​
-
The CEC-X platform acts as a sophisticated, online marketplace engine that sorts, ranks and presents individual CRE loans to targeted CEC Writers, according to proprietary algorithms, screens and profiles.
​
-
CECs employ a similar structure to a European-style put option, but with unique interim default provisions written within a standardized contract.
​
-
CECs are well suited for distressed markets, but effective in all market environments.
-
CEC-X was formed to make good commercial real estate (CRE) loans better.
​
-
CEC-X developed Credit Enhancement Contracts (CECs) as the first Basel III compliant credit protection solution for CRE finance.
​
-
The CEC-X platform enables CRE lenders to utilize CECs to transfer the risk of quality CRE loans to institutional investors that profit from writing Eligible Guarantees in normal markets and workout CRE assets in distressed situations at conservative attachment points, or basis.
​
-
The CEC-X platform acts as a sophisticated, online marketplace engine that sorts, ranks and presents individual CRE loans to targeted CEC Writers, according to proprietary algorithms, screens and profiles.
​
-
CECs employ a similar structure to a European-style put option, but with unique interim default provisions written within a standardized contract.
​
-
CECs are well suited for distressed markets, but effective in all market environments.
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CECs Deliver a "Win-Win"Dynamic Between Banks and Investors
Banks
Want
to Optimize Return on
Equity, Reduce
Regulatory
Capital and Loan Concentration
Investors
Want
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Low-Cost Origination of Quality Bank Loan Exposures with Enhanced Risk-Return Profiles
The CEC-X Platform Delivers for Both Banks and Investors
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LENDERS employ CECs in the transfer of quality CRE loan credit risk.
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INSTITUTIONAL INVESTORS provide the investment collateral
required for tranches of CEC protection to obtain CRE debt exposures.
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CECs for Bank Lenders
CECs Enable Banks to Achieve
Targeted Low Cost, Regulatory
Capital Relief and Reduce Loan Concentrations
Without Insurance,
Derivatives or
Other Compromises
"...CECs can provide
(bank) lenders with an alternative to offload risk, receive valuable regulatory capital relief, increase return on equity (ROE) related to bank lending operations and maintain long term borrower relationships."
from Patomak Global Partners White Paper,
“Use of Credit Enhancement Contracts by Bank Commercial Real Estate Lenders and Institutional Debt Investors” December 2023
CECs for
Credit Investors
CECs Act Like First Lien Direct Loans – but with Significant Advantages
Unavailable with Direct Origination
or Secondary Loan Purchases.
CEC-X Inc.
and the CEC-X
Platform
CEC-X Inc. is Comprised of
the CEC-X Platform and its Affiliated Operations Within Contract Management, CEC Clearing and Data Analytics that Share a Mission for Expanding the Global Market for Credit Enhancement Contracts.
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A Neutral Platform that Uses the Capital Markets to Reallocate Credit Risk and Reduce Regulatory Capital Burdens for Lending Institutions Making Senior Secured Loans.
Matches Senior Bank Loan Credit Exposures to Institutional Investors Via Standardized Proprietary Credit Enhancement Contracts Called CECs.
CECs are Eligible Guarantees,
that Provide Uniform Regulatory Capital Relief for Bank Lenders and are Collateralized by Investors Seeking Senior Loan Exposure.
CEC-X Clearing Operations
Accept, Process, Monitor, Safeguard,
Settle and Guarantee the Market
for CECs and Ensure Every CEC is a
Qualifying Eligible Guarantee