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Toronto, Ontario--(Newsfile Corp. - August 28, 2024) - DelphX Capital Markets Inc. (TSXV: DELX) (OTCQB: DPXCF) ("DelphX"), a leader in the development of new classes of structured products for the fixed income market, announces that it has entered a non-binding letter of intent dated August 27, 2024 with multiple hedge fund counterparties to offer up to $3 billion of notional credit spread protection via DelphX's Credit Rating Securities (CRS) program. Together, and should final conditions be met, these hedge funds will be ongoing supporters of the CRS program. These conditions include but are not limited to:
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DelphX facilitating the providing of bond portfolios to which hedge funds would provide credit spread protections triggered by a rating downgrade;
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final tax review by counsel.
DelphX continues to receive positive interest from potential future buyers of protection as CRS present a wholly new and innovative risk management tool for insurance companies and others where such availability for downgrade risk mitigation do not exist. This interest includes the providing of certain bond portfolios whereby the bond holders have expressed an interest in buying protection against some of the losses and capital charges which would occur should certain downgrades occur on those bond holdings.
DelphX will continue to provide updates as the CRS program continues to advance.
About DelphX Capital Markets Inc.
DelphX is a technology and financial services company focused on developing and distributing the next generation of structured products. Through its special purpose vehicle Quantem LLC, the Company enables fixed income dealers to offer new private placement securities that provide mitigation of spread and capital charge losses when downgrades occur, while allowing for attractive returns. The new DelphX securities will enable dealers and their qualified institutional investors (QIBs) accounts to competitively structure, sell and make markets in:
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Collateralized put options (CPOs) that provide secured rating downgrade protection for underlying corporate bonds;
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Collateralized reference notes (CRNs) that enable investors to take on a capped rating downgrade exposure of an underlying security in exchange for attractive returns.
All CPOs and CRNs are fully collateralized and held in custody by BNY Mellon. CPOs and CRNs are proprietary products created and owned by DelphX Capital Markets.
For more information about DelphX, please visit www.delphx.com.
Patrick Wood, Chief Executive Officer
DelphX Capital Markets Inc.
patrick.wood@delphx.com
George Wentworth, General Manager
DelphX Capital Markets Inc.
george.wentworth@delphx.com
(718) 509-2160
Forward-Looking Statements