SecondMarket Unveils Centralized Marketplace For Asset Backed Securities

Apr 8 2010 | 10:46am ET

SecondMarket, which serves as a secondary marketplace for illiquid assets, has launched what it says is the first centralized market for asset-backed securities.

"We have closely followed this market as pockets have remained largely illiquid, and we believe our experience with an array of structured products will allow us to seamlessly integrate the broader set of ABS into our existing platform," said Barry Silbert, ceo of SecondMarket. "The introduction of this market was a natural progression in our effort to create a global secondary platform for illiquid financial assets."

ABS covers a broad range of products and industries, the most common of which are credit card receivables, automobile loans and student loan securities. However, there are a myriad of other esoteric ABS such as leased-back receivables, franchise loans, medical and heavy equipment leases, and manufactured housing that will also be trading over SecondMarket.

"Over the past several months, we have seen significant buy- and sell-side interest from our market participants in a variety of securities across multiple sectors," said Elton Wells, head of structured products at SecondMarket. "The increased demand and completion of numerous ABS deals prompted us to officially launch this new market."

In addition to structured products, several other asset classes are traded on SecondMarket, including whole loans, private company stock, limited partnership interests, bankruptcy claims and warrants/restricted stock in public companies. More than $25 billion in assets are currently available for sale on SecondMarket.

SecondMarket, which conducted $2 billion in transactions in 2009, has more than 10,000 participants including global financial institutions, regional and community banks, hedge funds, private equity firms, mutual funds, corporations and other institutional and accredited investors.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.