Toronto – August 28, 2024
DelphX Capital Markets Inc. (TSXV: DELX) (OTCQB: DPXCF) (“DelphX”), a leader in the development of new classes of structured products for the fixed income market, announces that it has entered a non-binding letter of intent dated August 27, 2024 with multiple hedge fund counterparties to offer up to $3 billion of notional credit spread protection via DelphX’s Credit Rating Securities (CRS) program. Together, and should final conditions be met, these hedge funds will be ongoing supporters of the CRS program. These conditions include but are not limited to:
- DelphX facilitating the providing of bond portfolios to which hedge funds would provide credit spread protections triggered by a rating downgrade;
- final tax review by counsel.
DelphX continues to receive positive interest from potential future buyers of protection as CRS present a wholly new and innovative risk management tool for insurance companies and others where such availability for downgrade risk mitigation do not exist. This interest includes the providing of certain bond portfolios whereby the bond holders have expressed an interest in buying protection against some of the losses and capital charges which would occur should certain downgrades occur on those bond holdings.
DelphX will continue to provide updates as the CRS program continues to advance.
About DelphX Capital Markets Inc.
DelphX is a technology and financial services company focused on developing and distributing the next generation of structured products. Through its special purpose vehicle Quantem LLC, the Company enables fixed income dealers to offer new private placement securities that provide mitigation of spread and capital charge losses when downgrades occur, while allowing for attractive returns. The new DelphX securities will enable dealers and their qualified institutional investors (QIBs) accounts to competitively structure, sell and make markets in:
- Collateralized put options (CPOs) that provide secured rating downgrade protection for underlying corporate bonds;
- Collateralized reference notes (CRNs) that enable investors to take on a capped rating downgrade exposure of an underlying security in exchange for attractive returns.
All CPOs and CRNs are fully collateralized and held in custody by BNY Mellon. CPOs and CRNs are proprietary products created and owned by DelphX Capital Markets.
For more information about DelphX, please visit www.delphx.com
Patrick Wood, Chief Executive Officer
DelphX Capital Markets Inc.
[email protected]
George Wentworth, General Manager
DelphX Capital Markets Inc.
(718) 509-2160
Forward-Looking Statements
This news release contains certain “forward-looking statements” including, without limitation, statements regarding the launch of the CRS program. Such forward-looking statements involve risks and uncertainties, both known and unknown, that may cause actual results or events to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, business, economic and capital market conditions, regulatory uncertainties, and the demand for our products. The forward-looking statements in this news release are based on factors and assumptions regarding, among other things, the state of the capital markets, the ability of DelphX to successfully manage the risks inherent in pursuing business opportunities in the financial services industry, and the ability of DelphX to obtain qualified staff and services in a timely and cost-efficient manner to develop its business. Any forward-looking statement reflects information available to DelphX as of the date of this news release and, except as may be required by applicable laws, DelphX undertakes no intent or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.