Axylyum Charter, the parent company of the growth-enablement product AXY Wrap®, recently announced an expansion designed to further its mission of increasing liquidity for alternative credit providers through secured capital deployment. The NYC-based market creator has helped resuscitate the private lending industry by providing portfolio-wide secured engagement options to secondary mortgage markets participants.
AXY Wrap® Provides Liquidity and Secured Capital Deployment to Alternative Credit Providers
The firm is coming off a significant upsurge in originations by lenders with “wrapped” portfolios optioned through AXY Wrap®. With its proprietary product, in the event of default, Axylyum Charter purchases assets from their counterparts at up to 100% of the unpaid principal balance. This default risk mitigation equips lenders to do more of what they do best – lend.
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The expansion comes at a welcome time for lenders, with overall production down, and a gloomy economic outlook leaving many scrambling for a way to protect their balance sheets and defend against worsening market conditions. Despite the current depressed loan origination environment, AXY Wrap® has contributed significant liquidity support to originators and credit providers.
When asked about the impetus for the expansion, Mike Turnyanszki, Director of Finance at Axylyum Charter, remarked: “We’re focusing on the current illiquidity in the markets because buyers are rightfully concerned about an increase in defaults. AXY Wrap® solves this issue because we pay par when a loan in the optioned portfolio defaults. AXY Wrap® provides balance sheet protection to REITs, and credit enhancements to asset management companies, by addressing the risk of default and improving counterparty risks.”
The company’s Chief Credit Officer, Jane Petroff, echoed similar sentiments: “Over the past few months, we’ve seen an explosion of interest from lenders in the RTL space looking for a way to maintain liquidity in a rising rate environment. We’re proud to report that AXY Wrap® helped our clients achieve that goal, and we look forward to helping even more lenders, secondary market participants, and alternative credit providers benefit from the power of AXY Wrap®.”