The new type of ABS DelphX Capital Markets has created is currently on track to launch later this year with the assistance of its new partner, the Mortgage Industry Advisory Corp.
"We're on target to roll out the first part of the second quarter of this year," DelphX chief executive officer Larry Fondren told National Mortgage News.
MIAC is integrating its analytics with the market platform through which DelphX's recently renamed Syndicated Investor Guaranteed and Managed Asset (SIGMA) securities are traded.
The technology is designed to allow subscribers to access online asset-level information regarding a SIGMA portfolio and monitor its monthly performance thereafter. It also was designed to collectively assess the current value of each of these types of portfolios and related SIGMA securities as it anonymously trades all SIGMA issues.
SIGMAs are based on American depository receipts, but they are officially considered ABS because, in contrast to the equity shares issued by foreign companies that ADRs issue the rights to, the ownership rights to the loan portfolios in SIGMAs officially are "terminal in nature" and don't persist the way rights to the stock in a company could.
They are considered syndicated because they not sliced or diced but rather are participations or shares in the whole portfolio and they are guaranteed and managed by an investor "who holds skin in the game throughout," Fondren said.