What we do

Real Estate Securitization

  • As Banks shed long term assets like Mortgages, Origination, Financing, Distressed Assets Buying and Flipping. All these activities are moved to Non-Banks (Shadow Banks).
  • Non-Banks (Shadow Banks) market share of mortgage origination as doubled to 42% and expected to reach 50% in USA.
  • At LongFin, we provide alternative financing to Buy Distressed Real Estate, Non-performing Assets and Rental Yielding Assets.
  • We use our balance sheet strength and commodity trade finance flows to convert Real Estate Assets into Short Term Trade Finance Instruments and Discount them in Low-yield Interest Currencies / Countries.
  • We hedge Yield Curve Risk, FX Risk by trading FX Options, Short Term Interest Rates (STIR) Futures through our Low-latency global Electronic Market Making platform.

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.

  • Quicken Loan is a third largest mortgage origination in USA.
  • PFSI (Penny Mac Financial Services) which was formed by former executive of failed country wide mortgage in 2008 as grown to be the 8th largest origination of mortgages. They all gained as other incumbents like City Bank, Bank of America pulled back.
  • RealityTrack.com a leading source for housing data released a report that nearly 1.1 million USA properties are with foreclosure filings in 2015. Thousands of homes are sold to hedge funds by Federal Housing Admiration (FHA).