Can Issuer Insolvency Touch Segregated Assets?

September 15, 2008. Lehman Brothers files for bankruptcy.

Overnight, thousands of Structured Product investors discover a brutal truth - they don't own assets. They own a promise. And the one who made that promise just ceased to exist.

They joined a creditors queue that took years to resolve. Many never fully recovered.

Here's why it happened - and why it still happens today with some structured products:

• Your investment sits on the issuer's balance sheet - it's essentially unsecured debt

• Issuer goes under → your assets are part of the insolvency estate

• Recovery process takes years, lawyers take fees, you get whatever's left

• You trusted the product. Nobody told you that you were, legally speaking, just another creditor.

So how does iMaps think about this differently?

The short answer: iMaps doesn't ask you to trust a promise. It builds a structure where trust isn't required.

• Under Cayman Islands SPC legislation, each portfolio's assets are fully segregated. Portfolio A's troubles? Portfolio B's investors don't feel a thing.

• Assets are pledged to Collateral Services PTC, a 100% Intertrust Group subsidiary (one of the world's largest trust & corporate services firms), held for the sole benefit of AMC investors. Not iMaps. Not anyone else.

• Every AMC is listed on EUWAX Stuttgart (the largest exchange-based segment for structured investment products in Europe, with ~1.9 million instruments)

• iMaps ETI AG is audited annually.

Lehman collapsed. The promise evaporated.

The structure? That stays standing.

Let’s talk if you’d like to launch your own AMC as well!

PS: You can use the following links to easily book an e-meeting with us: https://meetings.hubspot.com/jeffrey-alldis (Jeffrey Alldis) or https://meetings.hubspot.com/herbert-hakala (Herbert Hakala)