Bank Markets

Loans and illiquid securities represent a significant component of major bank balance sheets that, in their current form, provide limited financing utility because they are:
  • difficult to assign or pledge (e.g., as collateral)
  • difficult to manage / custody
  • untradeable / Illiquid

Karson has developed its Loan Transformation Platform (the LTP or Platform) to enable banks to systematically convert their loans and illiquid securities into tri-party-eligible securities.

Once transformed, the new securities can be used to support:
  • short and long term liquidity management (e.g., standardized securitization, Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR) and Resolution contingent liquidity funding)
  • traditional business applications (e.g., collateral upgrades and credit enhancement)
  • derivatives initial and variation margin requirements
  • regulatory capital management activities
The Karson Platform enables banks to use non-traded, illiquid assets to access the wider capital markets by creating readily-marketable securities that benefit from:
  • independent, transparent valuations (price and risk transparency)
  • a standardized transformation process that generates listed, tri-party eligible securities
  • standardized structures and issue-related documentation (structuring transparency and homogeneity)

Platform operating security, stability, and efficiency are further enhanced by a common, scalable operating platform supported by large institutional partners such as BNYM and SIX Financial.