HARD ASSET MONETIZATION
OBJECTS OF ART, PRECIOUS STONES/METALS, MINES, REAL ESTATE, ETC:

INVESTOR MINDSET

An investor wanting to monetize a hard asset and/or take the monetized LTV into trade must clearly understand and focus on the fact that a trader’s credit lines are not triggered by an Investor’s asset(s) itself. What actually triggers a trader’s credit line is the blocking messaging coming from the Investor’s bank (typically via SWIFT MT760) which guarantees (with full banking responsibility) the asset blocking towards the monetization and/or trading bank's credit facilities.

It is absolutely typical that an asset owner's bank is unwilling to assume full bank responsibility for the securitization of a hard asset. In these common situations…the financial solution is obtaining an insurance policy of underwriting that securitizes/wraps the value of the assets in order for the bank to be comfortable standing behind the assets with full banking responsibility. This insurance policy/underwriting contract is also known as an “insurance wrap”. The bank can then stand behind the underwriting/wrap towards the monetization and/or trading bank(s).

The bottom line is that you need the professional/financial sophistication of having a credible bank standing behind your KYC/AML compliance package backed with your bank's full banking responsibility and also accepted by the monetizing bank. All parties and paperwork have to be near perfectly professionally packaged, authenticated, and able to withstand international banking and central banking compliance standards and accountability. It's that simple.

UNDERWRITING/INSURANCE WRAPS