Is There a Credit Risk to the Issuer of AMCs?

When exploring the world of investing, one question stands out: How safe is your investment from issuer risk?

Consider Wellesley Finance Limited, a UK-based investment firm. Drawn by promises of high returns, thousands of investors entrusted their savings to Wellesley through mini-bonds and peer-to-peer lending. However, after suspending payments in 2019, Wellesley missed a £5 million repayment target by 2023, leaving many investors facing significant losses with little chance of full recovery. This case underscores the severe impact of Issuer Risk on investors' portfolios.

How iMaps ETIs Protect Your Assets

Credit risk is a crucial concern, especially for investors in structured instruments like Actively Managed Certificates (AMCs). At iMaps Capital Markets, we’ve taken specific steps to effectively manage this risk, ensuring your assets remain secure and protected.

Here’s what sets iMaps AMCs apart:

Unlike first-generation Actively Managed Certificates (AMCs), which can expose investors to considerable issuer risk, iMaps AMCs are uniquely secured. The underlying assets are pledged to an independent security trustee who holds them on behalf of AMC holders. This setup effectively hedges against issuer credit risk, giving investors confidence and stability.

For investment managers handling assets under EUR 50 million, our structure offers a cost-effective and secure alternative to traditional investment funds. Launching with a secured AMC provides access to public markets with minimized risk, avoiding the high costs associated with fund structures.

In today’s market, where reducing risk is as essential as driving returns, iMaps AMCs stand out as a secure, flexible, and financially sound investment choice. Start with a secured AMC, protect your assets, and let us help you grow.

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)