2020-02-26

Date

26 Feb 2020

Attendees

• Vipin Bharathan dlt.nyc working on many

• Kirthi K - Reinsurance market, consultant

• mani pillai - Swapshub working on developing a product based on CDM and Digital Currencies

• Si Chen - Background in MBS and other credit securities as a trader
• Brian Behlendorf - ED Hyperledger
• @Sanjay Intain - securitization PoC and now productionization on ABS (Asset backed Securities)
• Natalia Garcia working in the issuance of corporate securities and vice-chair
• Ron Quaranta
• @Prasad from IBM GB- possible talk on Fabric based tokens (FSS Financial Services)

Goals

• Discuss Securitization
• Discuss HGF - not done
• Discuss eThaler project-
• Introduce custody project - not done

Discussion items

Recordings

audio

There is no video because there were no presentations.

Minutes

• Anti-trust policy & Code of conduct
• Introductions (tried to add that detail up top)
• Si Chen talked about the smart contracts for securitization
  • He wants Open Source Smart contracts to standardize and make transparent processes around analytics and securitization in general for all participants (Rating Agencies, Regulators, Investors, Trustees and servicers)- he feels this should be data standard independent.
  • He explained over-collaterization & Subordination
  • Over-collaterization - Use a pool of loans that is much larger than the securities issued against it (i.e. $500M of loans backing a $350M issuance)
  • Subordination- use a structure that has senior and junior tranches, junior tranches (higher yield) absorb first losses due to default and senior (lower yield) protected.
  • These are ways to protect investors and give them access to products that conform to the level of risk that they are willing to tolerate.
  • Sanjay talked about challenges in implementing this in Intain, they had to separate out several functions from chaincode into Java based helper functions mainly the payouts to investors, mainly due to chaincode latency and scaling issues. Motorcycle loans from a pool of 5000 loans have to track cashflows.
• Vipin talked about the eThaler project, motivation and implementation timeline with a call on Friday. Any securitization project consists of three items 1. Identity 2. Assets and their management 3. Payment rails through CBDC or attachments to stablecoins or other tokens.
• Mani talked about 1. Using basic definitions 2. Distributing the TTF worksheet.
• Who can be on the eThaler call? Anyone who is interested 1.Preparation needed 2. Basics cannot be repeated. We have set an aggressive timeline (4-6 weeks)

Action items

• Presentation by Sanjay on Intain securitization projects
• Presentation by Prasad on IBM
• Meeting Invite for Friday 11 am EST by Vipin Bharathan eThaler project add more details for prep work