cementing trust in asset backed securities

Non-mortgage commercial Asset-Backed Securities (ABS) are a cornerstone of institutional fixed-income portfolios, with around $4 trillion of annual global issuance (listed and unlisted) and $1.7 trillion in US listed securities outstanding in 2023.

These securities are backed with the cashflows received from services such as energy generation or equipment leasing. The underlying installations and equipment, with stable and predictable value, serve as collateral—resulting in relatively low default risk compared with, for instance, mortgage-backed securities, where real-estate price swings can pose a significant risk.

widely accepted — in need of verification

Historically, non-mortgage ABS have been created for large institutional investors, centered on sizeable portfolios of high-value assets in mature markets. Their reliability rests on well-defined characteristics and well-established reporting standards.

Today, that trust is eroding, revealing the need for more transparent verification. At the same time, issuers in emerging markets lack the infrastructure that underpins trust in mature systems, leaving the ABS market largely inaccessible to them.

cathmere’s proof-based platform

Cathmere establishes trust through technology. Using blockchain, IoT, and AI, the platform provides mathematical proof as it creates immutable links between contracts, payments and physical assets, drawing verified data directly from the source, and submits the data to continuous quantitative review.

for advanced and industrialized markets

Integration with manufacturers’ telematics platforms—covering equipment and power-plant components—simplifies the refinancing of vendor leases and vendor-financed portfolios.

Recent irregularities in the US ABS market have shown how weak asset verification can compromise even the most mature systems. Cathmere’s architecture makes vulnerabilities such as fraudulent duplication virtually impossible.

for emerging markets

In high-growth economies, Cathmere’s platform bridges the trust gap, enabling issuers to structure asset-backed securities that meet the standards of investors in advanced markets. It also opens participation to accredited retail investors, expanding access to a vital source of capital.