Aite Group Analyzes New Financial Products And Platforms Addressing Financial Crisis

A new report from Aite Group, LLC examines three market based alternatives that address issues that have arisen during the financial crisis. The report provides a description of each product or platform, and considers its application to specific problems within

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A new report from Aite Group, LLC examines three market-based alternatives that address issues that have arisen during the financial crisis. The report provides a description of each product or platform, and considers its application to specific problems within the current economic scenario.

The financial markets are experiencing stresses from the residential real estate market, and the potential for systemic risk posed by CDSs. In addition, there is a need for financing by small to midsize businesses, as well as a need for investable assets by investors. Today, three market-based alternatives – SwapRentSM, NetDelta and The Receivables Exchange – address the problems of these unprecedented times.

SwapRentSM, a new type of OTC derivative that mimics a sale and leaseback arrangement without attendant costs, benefits investors as well as strapped homeowners. NetDelta is a settlements platform that can actually lower systemic risk, as opposed to concentrating risk (i.e., central clearing). The Receivables Exchange is an e-platform that facilitates the primary issuance of trade receivables.

“The US financial system is facing risks to consumer solvency, system-wide financial stability and business liquidity,” says John Jay, senior analyst with Aite Group and author of this report. “Government assistance need not be the answer to what ails the financial marketplace – market-based applications are now available.”

D.C.

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