Reduce issuer risk in your investment products and access new investment opportunities for growth

GenTwo offers a three-step approach that sets new security standards, empowering financial intermediaries such as banks, asset managers, and family offices to develop investment products for all types of assets within a fully transparent and segregated issuance framework.

Step 1: Independent Issuers

The first step involves GenTwo providing each client with a dedicated issuer that functions as an autonomous legal entity. This unique arrangement allows for the creation of individual products without transferring risks between platforms, resulting in a range of benefits that enhance the attractiveness of these products from a risk perspective. 

Firstly, investors are no longer exposed to the default risk associated with a bank issuer. 

Secondly, the product risks of one issuer platform cannot be transferred to another.

Step 2: Product Segregation

By utilizing the dedicated issuer, clients gain the ability to launch multiple investment products with segregated units that are distinct from one another within the same issuer. 

This establishment of a product shield ensures that each integrated asset-backed security remains separate and independent from the others.

Step 3: Collateralization

 
In addition to the two-step segregation process, GenTwo enables full collateralization of any securitized assets. 

This further enhances the level of protection and ensures the highest level of security in the modern securitization market. By offering the option for full collateralization, any asset can be wrapped in a bankable structure.

The demand for these innovative investment products, such as Actively Managed Certificates (AMCs), Trackers, Credit Linked Notes (CLN) as or in asset-backed securities continues to be strong, as investors seek ways to diversify their portfolios and minimize counterparty risk. Recent events in the industry have heightened concerns regarding the stability of investment products, particularly traditional AMC offerings that are typically issued by financial institutions. 

This exposes investors to the credit risk of the counterpart or issuer holding the products on their balance sheet. In the event of the counterpart's insolvency, investors face potential losses. Consequently, investors and their managers may be hesitant to invest in products issued by traditional financial institutions and instead explore alternative providers.

By partnering with third-party providers, financial intermediaries gain the ability to launch their own white-labeled Actively Managed Certificates (AMCs), resulting in added value for both their clients and their business. 

This strategic approach allows financial intermediaries to focus on maximizing the performance of the product, while the third-party provider takes care of all other crucial aspects. By working with GenTwo, they can also benefit from an extended network of partners. Our streamlined processes and expertise in handling AMCs facilitate a swift and efficient launch of the product. 

This agility can be a significant advantage in capturing market opportunities and staying ahead of competitors.