DXMSecure provides an AI‑driven platform that restructures residential mortgage portfolios into customizable tranches, allowing banks and originators to disaggregate interest‑rate, prepayment, and credit risk across any point on the yield curve. By creating uncapped floating‑rate tranches and swap‑style risk transfers, the solution generates new liquidity sources, improves risk‑adjusted returns, and helps mid‑size banks and investors achieve targeted risk exposures.
Funding
Funding not disclosed
Founders
Product
Problem
Mortgage securitization markets struggle to efficiently split interest rate, prepayment, and credit risks across the yield curve, leading to suboptimal capital use, limited profitability, and constrained liquidity for banks and originators.
Solution
DXMSecure offers an artificial‑intelligence‑driven platform that restructures residential mortgage assets into customizable tranches with any maturity, duration, or convexity. The system creates uncapped floating‑rate tranches, enables interest‑rate and prepayment risk acquisition in swap format, and transfers prepayment risk on whole loans without full securitization. By facilitating best‑efforts auctions between originators, investors, and swap counterparties, DXMSecure matches floating‑rate demand with fixed‑rate supply, eliminating sponsor execution risk. These capabilities generate new liquidity sources, improve risk‑adjusted returns for banks, and provide investors with higher‑yielding, risk‑targeted instruments.
Target Audience
Primary customers are mid‑size and community banks, non‑bank mortgage originators, and investment banks seeking balance‑sheet optimization, as well as institutional investors targeting specific interest‑rate or credit risk exposures.
Features
- AI‑powered analytics layer built on Wall Street infrastructure for rapid pricing and risk allocation of mortgage‑backed instruments
- Creation of uncapped floating‑rate tranches and swap‑style risk acquisition without principal loss from defaults
- Ability to split and transfer prepayment, interest‑rate, and credit risk at any point along the yield curve (30 days to 30 years)
- Best‑efforts auction platform that matches floating‑rate investors with swap counterparties, removing sponsor execution risk
- Customizable securitization structures that integrate seamlessly with existing regulatory frameworks and off‑balance‑sheet vehicles
- Support for generating new upfront fee income for investment banks while preserving balance‑sheet neutrality