Delphx Capital Markets, Inc. · TSXV:DELX
Delphx Capital Markets — Investor Presentation (March 2022)
19 slides from Delphx Capital Markets's investor presentation, March 2022
Slide 1: Building the next generation of credit default and yield enhancement securities
Building the next generation of credit default and yield enhancement securities TSXv: DELX OTC: DPXCF CONFIDENTIAL
Slide 2: Cautionary Notes
Cautionary Notes 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 are not pure
Slide 3: About
2021-2022 Stock Price Timeframe About 1YEAR Founded in 2012, DelphX is a technology and financial services company focused on bringing new and exciting debt management tools to the structured product and credit markets. Through its special purpose vehicle Quantem and its broker- dealer DelphX Servic
Slide 4: Vision
Vision Develop Next Generation Credit Products and Technologies FOR AN ESTIMATED $15.7 Trillion Market We are launching an industry-first structured products facility designed to solve the decades-old problems in the management of credit risk through the issuance of two new and proprietary private p
Slide 5: Mission
Mission DelphX is committed to transforming credit markets by increasing access to efficient, transparent and cost effective hedging strategies and increased yields with no counterparty risks: Building a first of its kind product that allows transparent arbitrage of Provides a standardized facility
Slide 6: The Problem
The Problem A Global Challenge For over a decade, credit investors have endured a prolonged decline in investment yields. At the same time, the Credit Default Swap (CDS) market has shrunk materially: F R O M O V E R The environment has been particularly vexing for ! $50 Trillion T O U N D E R life i
Slide 7: Our Solution
Our Solution DelphX creates measurable value for all participants DelphX Advantage C P O I N V E S T O R S E C U R I T I E S AT I S S U A N C E , N O C O U N T E R PA R T Y R I S K • New securities provide collateralized payment in the event of default of a referenced CUSIP…proprietary to DelphX • T
Slide 8: The Simple Picture
The Simple Picture Manager A Manager B Needs Yield Needs Portfolio Protection Credit investor “A” can take on the default Credit investor “B” can gain secured default exposure of an underlying security in protection for underlying corporate, exchange for enhanced yield via municipal and sovereign se
Slide 9: Net yield pickup and revenue result of a sample issuance
Net yield pickup and revenue result of a sample issuance: A L LY B O N D YIELD 2.136% CRN DelphX Revenue of YIELD 2.578% PICKUP OF 0.401% $1,356,000 per $100,000,000 of issuance on this specific trade with room to scale substantially more. CONFIDENTIAL 9
Slide 10: Market
Market DelphX is looking to capture part of an $15.7 Trillion Market CDS US Investment Grade Corporate Bonds CPO / CRN % of US IG CDS Outstanding $ 5 AN N UAL REVEN UE CPO / CRN % of US Corporate Bond Outstanding $ 1 0 . 7 AN N UAL REVEN UE T R I L L I O N T R I L L I O N 1% $125 Million 0.5% $133.7
Slide 11: Roadmap
Roadmap DelphX will build tomorrow’s credit market through: Data Analytics-led innovations & platforms that Market efficiencies through ”smart Real time price discovery, liquidity & transform participant experience credit” products automated execution through AI & blockchain Q1 2022 Q2 2022 Q3 2022
Slide 12: Key Marketing Partner – LPS Capital LLC
Key Marketing Partner – LPS Capital LLC DelphX/LPS Partnership: • Sales & marketing agreement, with LPS working to advance the use of the proprietary DelphX Collateralized Put Options (CPOs) and Collateralized Reference Notes (CRNs) structured products. • Experienced sales team at launch and faster
Slide 13: Key Technology Partner – Halo Investing
Key Technology Partner – Halo Investing DelphX/Halo Partnership: • Co-development and licensing agreement, whereby Halo will construct for DelphX an industry-first automated platform that will allow both buyside firms and dealers to negotiate and trade the DelphX-issued Collateralized Put Options (C
Slide 14: Leadership Team
Leadership Team Patrick Wood Simon Selkrig Gordon Jardin CEO and President Chief Financial Officer Chief Actuary & Risk Officer Patrick is a successful capital markets veteran with industry Simon has more than 20 years of experience in all aspects of Gordon is a Fellow and past board member of the S
Slide 15: Non-Executive Directors
Non-Executive Directors Steven Mannik Anne Connelly Salim Hasham Non-Executive Director Non-Executive Director Non-Executive Director Steven is a Fellow of the Society of Actuaries and of the Canadian A passionate advocate for harnessing blockchain to transform Salim is currently a Director and Glob
Slide 16: Advisors
Advisors Keith Styrcula Joe Castelluccio Keith has over two decades of experience in the structured investments and derivatives industry. He was During his four decades in the bond markets, Joe has written extensively on fixed income topics, making the Founder and Head of the Structured Solutions Gr
Slide 17: Keys to the Story
Keys to the Story C O L L A B O R AT I V E E F F O R T: Our product development process was lengthy and included significant input from top legal entities and dealers, giving us high confidence in our solutions for this DELPHX OFFERS INDUSTRY-FIRST TOOLS underserved market. DEFAULT RISK IS PERVASIVE
Slide 18: DelphX Acronyms Playbook & Terms
DelphX Acronyms Playbook & Terms The following is a list of acronyms and terms that will be helpful while reading this presentation: CPO ISDA Collateralized Put Option - a fully-collateralized Private Placement security that provides International Swaps and Derivatives Association - Determines wheth
Slide 19: Contact
Contact Canada 15 Prince Arthur Avenue, Toronto, ON M5R 1B2 USA 110 Wall Street, New York, NY 10005 CONFIDENTIAL WWW.DELPHX.COM
DelphX Capital Markets — Investor Presentation (March 2022) on 6ix