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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.
​
-
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.
-
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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CEC Loan Syndications
for Banks and Credit Investors
CECs Unlock
Senior Loans
for Banks
and Investors
What are CECs?
CECs
Credit Enhancement Contracts are Standardized Cash Collateralized and Regulatory Compliant
1st Loss Eligible Guarantees Stapled to
Individual Bank Loans
CECs, Under Regulatory Capital Rules,
Permit a Bank Lender to Substitute the Risk Rating of the Loan with the Risk Rating of the CEC Qualifying Guarantee, Resulting in a Material Release of Regulatory Capital.
CECs Provide Bank Lenders with an Effective Alternative to Offload Risk, Receive Valuable Regulatory Capital Relief, Increase Return on Equity (ROE) Related to Bank Lending Operations, and Maintain Long-Standing Borrower Relationships.
CECs Provide Credit Investors with a Large and Scalable Pipeline of Diversified Senior Secured Credit Exposures to High-Quality (First Quartile) Loans Listed by Bank Lenders.
A New Market to Invest in
High Quality
Bank Loans
CECs are a
Hyper-Efficient Source of Bank Loan Origination that Can
be Tailored:
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by CRE or C&I​
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by Fixed or Floating
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​​by Sector, Geography, Maturity Date, Bank Origination, or
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​by Other Factors an Investor Selects to Obtain Higher Risk-Adjusted Returns and Bridge the Bank to Investor "Yield Gap".
Benefits of CECs
Quotes from CEC White Paper
CECs for Banks
“CECs provide banks with a strategic risk management tool to address regulatory concerns about credit concentration risks and capital adequacy."
CECs for Investors
"Investors can use CECs as an additional avenue to supplement their portfolios at the specific risk level that aligns with their risk tolerance"
CECs for Regulators
“CECs open the bank loan market to additional risk takers, while maintaining the established regulatory reporting and servicing expertise of bank lenders.”
CECs are Regulatory Compliant Eligible Guarantees
Deliver Certainty of Default Triggers and Settlement with Automatic Unconditional Recovery for Bank Lenders and Transfer of Rights for Investors
With All CECs
CECs are a Fully Secured Guarantee
Guarantees are Secured by Unconditional and Automatic Settlement of Investors' Cash Collateral and Cleared by an Eligible Guarantor
Specific to Bank Lenders
CECs Improve Credit Investors Returns
Enhanced Investor Performance Results from Access to a New Private Credit Market with Cost-Efficient Origination and Deployment at Scale
Specific to Credit Investors
CECs Use Standardized Documentation
CEC Guarantees are Specific to Bank Loans and are Documented Without a Derivative or insurance Component.
With All CECs
CECs Enhance
Bank Lending
Solving the Illiquidity and Regulatory Challenges for Banks Holding Senior Loans Across Market Cycles
Specific to Bank Lenders
CECs Deliver First-Lien Senior Banks Rights with Resolution
With Exercised CECs, Investors Obtain First-Lien Senior Rights to Directly Resolve Distressed Debt
Specific to Credit Investors
Regulatory View of CECs
Key Contractual Provisions that Ensure Each CEC is an Eligible Guarantee
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CECs are Standardized, Written, Unconditional, and Cover All Contractual Payments of a Borrower Associated with a Bank Loan.​
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CECs Meet or Exceed All Regulatory Requirements to be Deemed an Eligible Guarantee by U.S. and Global Regulators.
Contact CEC-X to
Learn More About
How CECs Work
