Delphx Capital Markets, Inc. · TSXV:DELX
Delphx Capital Markets — Investor Presentation (January 2023)
10 slides from Delphx Capital Markets's investor presentation, January 2023
Slide 1: Utilizing proprietary CPO and CRN securities
Utilizing proprietary CPO and CRN securities DelphX offers two separate solutions for rating change protection and default protection TSXv: DELX OTC: DPXCF CONFIDENTIAL
Slide 2: CPOs and CRNs and their role in CRS: What, Who, Why
CPOS AND CRNS and their role in CRS (Credit Rating Securities) What, Who, Why… CPOs and CRNs are one of a kind, transparent and easy to comprehend. What are CPOs and CRNs Who are the Target Investors Why CRNs and CPOs CPOs and CRNs are Private Placement CRN Target Investors are Qualified CRNs provid
Slide 3: Example #1: Rating change protection for one year on a 1 year bond
Example #1: Rating change protection for One year on a 1 year bond (explained on following slide) Example Cash flows of Credit Rating Securities (CRS): REFERENCE BOND Oracle 01/08/2024 Rated BBB: S&P, Fitch Private Placement Security Private Placement Security CPO CRN (Collateralized put obligation)
Slide 4: Example #1 explained
Example # 1 explained Reference bond is downgraded to trigger rating BB with one year remaining to maturity on the reference bond 1. Spread on reference bond rises from 75bps to 375bps 2. CRN pays CPO $6,000,000 for 200MM notional coverage out of collateral fund 3. CRN retains remainder of $1,000,00
Slide 5: Example #2: Rating change protection for one year on a 5 year bond
Example #2: Rating change protection for One Year on a 5 year bond (explained on following slide) Example Cash flows of Credit Rating Securities (CRS): REFERENCE BOND Oracle 01/08/2028 Rated BBB: S&P, Fitch Private Placement Security Private Placement Security CPO CRN (Collateralized put obligation)
Slide 6: Scenario Two
Scenario Two Reference bond is downgraded to trigger rating BB with 5 years remaining to maturity on the Reference Bond Note: On issuance both sides agree to a $15MM cap on liability 1. Spread on reference bond rises from 75bps to 375bps 2. CPO is due $6,000,000 X 5 ($30,000,000) for 200MM notional
Slide 7: A tool for default protection
A tool for default protection… DelphX also has a default protection and yield enhancement solution using CPOS AND CRNS. Successfully completed first issuance with LPS Partners in June 2022! CPOs and CRNs and how they apply to the DelphX Default Securities. What are CPOs and CRNs Who are the Target I
Slide 8: Solution #2: Default protection
Solution #2: Default protection Default Protection Securities: YTM 4.13% REFERENCE BOND YTM 4.35% Private Placement Security PM 08/17/2027 3.125% Private Placement Security CPO CRN (Collateralized put obligation) (Collateralized reference note) QUANTEM $100 Million Coverage $100 Million Liability SP
Slide 9: Legal Documents in Place for Issuance
CRS (Credit Rating Securities) and Default Protection Securities Legal Documents in Place for Issuance Static Documents: Documents at Every Issuance: Incumbency Certificate Dealer Agreement Quantem Offering Memo Series Agreements Issuing & Paying Agency Agreement Notice of Issuance Securities Accoun
Slide 10: Private Placement Securities: Forward-Looking Information
Private Placement Securities Forward-Looking Information Certain information contained herein is forward-looking and relates to the DelphX Capital Markets Inc. (“DelphX” or the “Company”) business strategy, the launch of the DelphX platform, and future events and courses of action. Statements which
DelphX Capital Markets — Investor Presentation (January 2023) on 6ix