Asset securitization is where a financial institution or other business that owns assets places those assets in a structure so that the risk and rewards of owning the asset are transferred to a third party. Ordinarily, "Asset Monetization" is used when transforming assets with low liquidity into a structure where investors can have greater liquidity.
The evolution of LongFin is from Electronic Markets to Commodity Markets and providing solutions for Commodity Carry Trade in Physical Commodities. We created a new differentiator business model for Hard Assets (Real Estate).
LongFin in 2017 is planning to build a Real Estate Asset base across USA, UK, Europe and Asia. Our unique model converts Real Estate Assets in LongFin book into Synthetic Short Term Debt Instruments using LongFin's Quantitative and Mathematical models.
Real Estate Assets are converted into ABS, CMBS, MBS, REITs (long term securities) and being traded in OTC markets and exposed to yield curve risk. LongFin developed its core model of converting Real Estate Assets with cash flows into Synthetic Short Term Trade Finance Instruments trades yield curve risk using Electronic Market Making platform. LongFin's robust electronic ultra-low-latency high frequency trading platform connected across global exchanges will power the trading of synthetic debt instruments of Real Estate Assets using Short Term Interest Rates (STIR) products.