CEC-X

About CEC-X

CEC-X's core product, the Credit Enhancement Contract ("CEC") Loan Participation, offers a novel capital markets solution that creates a bridge between Private Credit Investors and the investment-grade loan portfolios of partner Banks. CEC Loan Participations enable Private Credit investors to invest in defined participations within individual investment-grade bank loan portfolios originated by trusted banks. CEC investors gain access to yield-enhanced exposures to investment grade senior bank loans with defined cash flow rights and strong senior resolution protections, mitigating both credit and operational risks with lower sourcing costs. Importantly, CEC investments are regulatory compliant and structured to obtain favorable statutory accounting and RBC treatment for insurance LPs. CECs deliver superior, regulatory-compliant, loan-by-loan risk management outcomes for Banks by providing up to 45% credit protection, reducing required regulatory capital by up to 89%, increasing core deposits by up to 45% of loan notional, enhancing loan economics, mitigating credit allowances, and ultimately delivering capital-lite lending models and higher revenue and ROE growth. Private Credit investors that provide the collateral for CEC Loan Participations can think of the CEC-X platform as a hyper-efficient channel of customizable, yield-enhanced investment grade private credit origination (by sector, fixed vs. floating, geography, maturity date, bank origination, or other factors) and a source of higher risk-adjusted returns due to the unique CEC yield and resolution structure.

View contact profiles from CEC-X