LEASED INSTRUMENT MONETIZATION

QUESTION: CAN A LEASED INSTRUMENT BE MONETIZED?

ANSWER: The short answer is “yes”. The longer and more accurate answer is that you can take a leased instrument into trade ONLY IF the actual owner/titleholder of the instrument is fully participating within the transaction.

Nobody is going to monetize and/or trade an asset for somebody that doesn’t own and have full control of the asset. For example …just because you lease/rent a house or a car… you can’t borrow against or sell the house or the car because you don’t actually own it... right?

NOTE: One major mistake parties that lease instruments often make is thinking they deserve the same respect as an actual titleholder that owns the instrument. Another mistake is thinking that a reputable trader is going to issue a trade contract to the lessee to convince the titleholder to participate within a monetization and/or trading transaction.

(The actual titleholder will be the primary client when trading a leased instrument.)

The quality of a compliance package is the key issue and critical factor in achieving successful monetization at the highest LTV.