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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.
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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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Unlocking Senior Loans for Banks and Investors
A New Platform to Reallocate Credit Risk
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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 Commercial Real Estate Loans.
Matches Senior CRE 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 CRE Lenders and are Collateralized by Investors Seeking Enhanced CRE Credit Exposure.
CEC-X Creates a "Win-Win"Dynamic Between Banks and Investors
Banks Want
Balance Sheet Optimization, Risk Management and Capital Relief for CRE Loans
Investors Want
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Tailored Risk Exposure on a Cost Efficient Basis to High-Quality CRE Loans
Credit Risk Transfers Via CECs on CEC-X
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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 CRE Lenders
CEC-X Enables Banks to Achieve Low Cost, Targeted Regulatory Capital Relief Without the Compromises of Other Market Solutions
"...CECs can provide
CRE lenders with an alternative to offload risk, receive valuable regulatory capital relief, increase return on equity (ROE) related to bank CRE lending operations and maintain long term CRE 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
Banks Employing CECs
Substitute First-Dollar CRE Loan Exposure for an Eligible Guarantee on Retained CRE Loans.
CECs for CRE Investors
CECs Act Like First Lien Direct Loans – but with Significant Advantages
Unavailable with Direct Origination
or Secondary Loan Purchases.
CEC Collateral Stack
for CRE Credit Investors
Tranches of CEC Collateral
