How shipping containers, films and Blockchain startups are finding their way into classic investment portfolios

Insights - 07.05.2021 - 3 min read time
The Zurich securitization specialist GenTwo is disrupting the investment market. Any kind of traditional or innovative asset can be brought directly to the market today, via the company’s off-balance sheet securitization platforms.
 
As an investor, what is the best way to invest in shipping containers? Via an actively managed investment certificate that the Hamburg asset manager and logistics specialist “Solvium Capital” has structured, in collaboration with the Zurich fintech firm GenTwo. Similarly, the renowned Hollywood production company "Barry Films," based in Los Angeles, Zurich and Berlin, has converted its film and series projects into easily investable assets in the same way. And with the help of GenTwo, the Zug-based venture capital investor "Crypto Valley Venture Capital" has also brought a financial product to the market – one that offers unique early-stage investments in the young, promising Swiss Blockchain industry. 
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These are examples of exceptional securitizations that perfectly illustrate GenTwo's “Securities-as-a-Service” business model. This innovative Swiss securitizer is able to set up off-balance sheet securitization platforms for its institutional clients, no matter where thy are based. Thanks to the issuing solutions it provides, any asset – traditional or exotic – can now be securitized and made investable and tradable, making use of conventional investment products with Swiss ISINs. This opens up significant opportunities for banks, asset managers or family offices to provide enhanced services for their customers. It not only means that they can effectively meet increasing demand for diversification in investment portfolios, but also in the area of ​​risk management, off-balance-sheet platforms are becoming increasingly relevant, for example because capital costs and costs arising from credit and interest rate risks can be reduced on the company’s balance sheet.
 
 
Yet when it comes to risk reduction, GenTwo's securitization platforms offer even more options – namely at the individual product level. As the pioneer in the securitization and platform building segment, GenTwo provides infrastructure to its clients with a particularly unique benefit: the issuing platforms are not only set up off-balance sheet, but also completely separate from one another. This results in advantages that make the individual products even more interesting from a risk perspective. On the one hand, once they are launched, products are no longer exposed to the default risk of a bank issuer. And on the other hand, any product risks of one platform are not transferable to another platform. Using a dedicated securitization solution provides extreme flexibility in this regard.
 
All of this should please investors who want to get more out of their thematic investment ideas while also desiring to exercise more caution in their investment decisions at the issuer level. From the point of view of banks or asset managers, GenTwo's flexibly deployable securitization platforms are the perfect infrastructure for overcoming market entry barriers and penetrating new lucrative markets. In the final analysis, these platforms function as a springboard for innovation in the financial market. By increasing diversity and generating many new investment opportunities, these platforms enrich the investment market and serve as a catalyst for new growth potential.
 
These aspects make the use of GenTwo's innovative securitization platforms interesting from the point of view of return and risk:
  • Opportunity to securitize any type of asset: Innovative securitization platforms provide efficient investment access to many new (or alternative) assets.
  • Portfolio management: In day-to-day business, the securitization platforms are easy and flexible to deal with. Thanks to the possibility of securitizing all types of assets, they facilitate a high degree of portfolio diversification as well as achieving the effective diversification of risk within an investment portfolio.
  • Profitability: Conventionally, financial products in very specific but promising niche areas would be expected to generate only low investment volumes, but now they become economically interesting. Investors can benefit from improved price-performance ratios and take advantage of an expanded product universe, thanks to a higher number of products now eligible for selection.
  • Issuer risk: The financial products launched on these platforms do not bear any of the default risk of a bank issuer, since the platforms are set up off-balance sheet.
  • Independent issuers: Segregated securitization platforms are set up separately and independently of one another. In this way, risks from one platform cannot be transferred to another platform.



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