DealVector has launched the first secure electronic communication network to allow fixed income and illiquid asset market players to know “who’s in their deal,” improving the efficiency of these markets by facilitating communication.
The DealVector platform fills a major gap in the current DTC/Street Name system by offering market participants the ability to directly message the beneficial owners of financial assets on a mutual opt-in basis. In doing so, DealVector allows issuers, investors, advisors, collateral managers and others to come together to address governance and restructuring issues, improve market surveillance, source illiquid assets and more.
Market participants invested in CDOs, CLOs, fixed income and other alternative investments have historically been forced to operate in an opaque, fragmented market, with limited insight into counterparties, transaction volumes and inventory. This lack of transparency makes it almost impossible to track down the right players in deals, and means many claims or restructurings are never brought to a vote because too few holders are aware it is happening. As a result, market participants often incur large costs and high risk with respect to price discovery, governance, consent solicitations, illiquid asset sourcing, creditor class formation and many other common events requiring communication among deal participants.
DealVector’s platform solves these problems by using a confidential deal registry and identity-protected messaging service to match alternative asset players according to specific deal, role or pricing preference. Members address messages by defining two “vectors” of approach: the asset, and the type of participant (role). Messages are delivered only to members who match the specified criteria. All communication takes place under numeric identifiers, preserving anonymity. At the same time, DealVector validates each network participant, meaning members can also be confident they are communicating with legitimate counterparties.
“Investors in the alternative investment space have long searched for a solution that provides a secure method to pinpoint other holders in a specific deal without having to give away their position or personal information,” says David Delo, chairman at Southport Asset Management. “DealVector has addressed that issue by creating the first social networking platform that preserves privacy while fostering communication between investors in the structured credit and fixed income communities.”
“The fixed income and illiquid markets have historically been plagued with issues of transparency and information asymmetry. DealVector addresses both issues by delivering the transparency users expect in the digital era while respecting the unique privacy, regulatory and security concerns of financial market players, making the process of connecting with other deal participants faster, safer and more efficient,” says Mike Manning, co-founder and chief executive of DealVector. “Much as email and social networks opened entirely new avenues of communication, we allow entirely new opportunities to emerge for portfolio optimisation that have not been possible until now, by dramatically lowering the friction of communication.”