The Importance of Collateralization in Actively Managed Certificates

Collateralization serves as a cornerstone in the financial structure of Actively Managed Certificates (AMCs), ensuring security and confidence for investors. At iMaps Capital Markets, we employ a robust collateral management system to back every AMC we issue to safeguard investor interests.

How Does It Work?

For each AMC, the assets comprising the underlying get pledged as collateral for the benefit of the AMC investors. This is done through Intertrust Group, ensuring these assets are strictly used for benefiting the respective AMC’s investors.

Why Is This Important?

It protects investors from the insolvency risk of the issuer by ensuring that the assets comprising the underlying can be liquidated to meet obligations against the AMC securities holders and will not fall into the bankruptcy estate.

The collateralization of assets ensures that investors’ interests are prioritarily considered and protected. For anyone investing in structured products like AMCs, understanding the underlying security measures, such as those provided by iMaps Capital Markets, is crucial to making informed investment decisions.

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