Debt Exchange
Encyclopedia
The Debt Exchange is one of the world's largest loan sale
advisors for the sale of commercial, consumer and specialty finance debt. The company is engaged by commercial banks, insurance companies, investment banks, government agencies and other institutions.
The Debt Exchange is based in the Financial District in Boston, Massachusetts with additional U.S. offices in New York City, Atlanta, Virginia, San Francisco, and international offices in Germany, Spain, and the United Kingdom. The company sells loans in an online auction format to qualified bidders. In 2006, The Debt Exchange was awarded patent number 7,035,820 by the United States Patent and Trademark Office
for its online loan sale and debt trading exchange system.
Throughout the Financial Crisis of 2007–2009, the U.S. Federal Deposit Insurance Corporation
(FDIC) used DebtX as one of the primary companies to sell loans from failed banks. DebtX was founded in 1999 as a loan sale adviser and has expanded to offer other services including loan valuation and analytics as well as Web-based deal management. The DebtX loan sale platform includes a virtual data room
, a customer relationship management
system and online auction technology. Prior to each loan auction, attorneys
review and arrange the loan documents to facilitate bidder due diligence.
Several loan exchange web sites have emerged since the financial crisis. Some sites require exclusive contractual relationships with the exchange operator and others are a more open exchange system which enables buyers and sellers to connect with each other outside of the exchange, similar to how a real estate multiple listing service operates.
Loan sale
A loan sale is a sale, often by a bank, under contract of all or part of the cash stream from a specific loan, thereby removing the loan from the bank's balance sheet....
advisors for the sale of commercial, consumer and specialty finance debt. The company is engaged by commercial banks, insurance companies, investment banks, government agencies and other institutions.
The Debt Exchange is based in the Financial District in Boston, Massachusetts with additional U.S. offices in New York City, Atlanta, Virginia, San Francisco, and international offices in Germany, Spain, and the United Kingdom. The company sells loans in an online auction format to qualified bidders. In 2006, The Debt Exchange was awarded patent number 7,035,820 by the United States Patent and Trademark Office
United States Patent and Trademark Office
The United States Patent and Trademark Office is an agency in the United States Department of Commerce that issues patents to inventors and businesses for their inventions, and trademark registration for product and intellectual property identification.The USPTO is based in Alexandria, Virginia,...
for its online loan sale and debt trading exchange system.
Throughout the Financial Crisis of 2007–2009, the U.S. Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
(FDIC) used DebtX as one of the primary companies to sell loans from failed banks. DebtX was founded in 1999 as a loan sale adviser and has expanded to offer other services including loan valuation and analytics as well as Web-based deal management. The DebtX loan sale platform includes a virtual data room
Virtual data room
A virtual data room is an online repository of information that is used for the storing and distribution of documents. In many cases, a virtual data room is used to facilitate the due diligence process during an M&A transaction, loan syndication, or private equity and venture capital transactions...
, a customer relationship management
Customer relationship management
Customer relationship management is a widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing,...
system and online auction technology. Prior to each loan auction, attorneys
Lawyer
A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person who is practicing law." Law is the system of rules of conduct established by the sovereign government of a society to correct wrongs, maintain the stability of political...
review and arrange the loan documents to facilitate bidder due diligence.
Several loan exchange web sites have emerged since the financial crisis. Some sites require exclusive contractual relationships with the exchange operator and others are a more open exchange system which enables buyers and sellers to connect with each other outside of the exchange, similar to how a real estate multiple listing service operates.