What Issuers Don’t Want You to Ask About Risk
You think you’re asking the right questions. But you might be skipping the one that matters.
When you consider investing in a product issued by a third party, you often ask: “What’s the return?” or “How liquid is it?”. But there’s one equally important question to ask, and that question is:
“What happens if the issuer fails?”
When Trust Becomes a Blind Spot
Investment products carry issuer risk: the risk that the issuer cannot honour its obligations (creditworthiness, insolvency).
For many products, the issuer is simply a corporate or banking entity, and in a stress scenario, investor claims might be compromised.
In the securitization world: although the EU framework has strengthened, it has also increased costs and complexity, limiting participation and potentially increasing hidden risks.
The Architecture of Protection
iMaps structure was built differently. Each AMC is linked 1:1 to a Segregated Portfolio held at our wholly owned subsidiary Pecunia SPC. The Segregated Portfolio serve as hedge and collateral for the AMC.
They are pledged to Collateral Services PTC, a 100 % subsidiary of Intertrust Group, for the sole benefit of AMC investors.
In plain terms:
The ETI’s underlying assets are fully ring-fenced from the issuer’s bankruptcy risk.
The pledge ensures investor claims are secured and prioritized.
Even if the issuer were to default, the pledged assets are used exclusively to meet investor entitlements and do not form part of any bankruptcy estate.
So, our advice is, before you invest, always ask: “Who really owns the assets behind the product?”
If the answer sounds vague, you’re already carrying more risk than you think.
Interested to learn more or want to launch your own AMC? Let’s talk!
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)
